How does this scam work? At 1st glance the rules are rather tricky...
Scammers buy premined/instamined coins to purchase "power" to upvote articles about their projects and downvote the articles of their competitors.
Right?
The coins that are powered up are used as stake, that stake is used to upvote content or earn money in various ways.
How can you earn money in varios ways, if the projects's only source of income is selling coins and tokens? It's a classic Ponzi scheme.
And what's the point of wasting money on this project, if you can buy up-votes (likes, retweets, whatever) on more popular platforms (twitter, facebook, reddit etc) ?
Dude it's not project paying. It's basically people are voting stuff they like and since everyone considers there is a value, so those authors get rewarded. Just like how Bitcoin is treated valueable because everyone associates a value with it. Yes, Steemit is not the best crypto platform out there, but saying it a ponzi is totally dumb. Better research on things than just spit out venom. And as for why not promote on FB and all, then it's mainly because those platforms don't allow certain content and can censor any content anytime. Plus Steemit is more targeted for crypto users and is totally ad free.
If there are no ads, how is the income being generated, except by selling worthless coins/tokens?
So, current investments are reimbursed by future investments, right?
Ponzi scheme at its finest!
At the same time the "investors" are scammers, too. They are promoting their "projects", 'cause they are banned or may be banned on other platforms. So, there is a constant influx of money as long as other scams are being profitable.
Manus manum lavat!
