Topic: What is now the difference with Ponzi platforms with cryptocurrency exchanges - page 3. (Read 637 times)
November 16, 2022, 11:26:11 AM
We can't generalize. A crypto exchange has nothing to do with ponzi schemes. Scammers CEOs pumping and dumping native tokens from their own exchanges with customers' funds have. What must be clear is that an exchange can exist and launch their own token in a fair, legit and sustainable way, respecting and protecting customers and investors. Only time will tell who has been operating their platforms in an honest way, but it's unlikely every exchanges are going to fall, because it's unlikely all of them adopted the same criminal practices. Let's see the next episodes of crypto universe...
November 16, 2022, 11:22:14 AM
Yeah, never trust an exchange to keep your money safe because you don't know what will suddenly happen that will result in an unexpected loss of funds.
I wouldn't call them a Ponzi platform even if it is beginning to look like it with all the recurring cases we are experiencing. Exchanges were supposed to be an easy means for people to buy and sell crypto, making it more accessible to as many people as possible, but some of them have lost track of that and aim to bite more than they could chew.
I wouldn't call them a Ponzi platform even if it is beginning to look like it with all the recurring cases we are experiencing. Exchanges were supposed to be an easy means for people to buy and sell crypto, making it more accessible to as many people as possible, but some of them have lost track of that and aim to bite more than they could chew.
November 16, 2022, 11:04:31 AM
Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?
Tracing back to when Bitcoin started, trust is the thing a has little mere significance. As the saying goes, "don't trust, verify". The problem with the current condition is that those centralized entities lack firm and stable regulation. Some say, regulation will make cryptocurrencies worse, but, in fact, that kind of centralized entity and the people who are also using them will surely get the benefit of it.
The point is, people have a choice whether they want to trust somebody or not, and people are still able to use crypto in a sovereign way. Trust is the complete opposite of the spirit of what Bitcoin has started, so if some people still want to rely on third parties, a tightly regulated ecosystem will ensure the trust of the users.
November 16, 2022, 09:48:00 AM
To be clear, it's only if you see an APR or yield on the exchange. If you see any of those, then it means that the exchange has HYIP-like tendencies, only they are more glorified, feel entitled to your documents, and fall in slow motion.
November 16, 2022, 09:21:50 AM
As far as am concerned, those ponzi schemes have advanced into crypto projects as well eince they discover that people want cryptocurrency and that's the central attraction for them to invest their money with, so i count them altogether as same thing since anything that can take away someone's entire asset without refund overnight has thesame identity to that of ponzi regardless of whatever the coin investment it maybe.
November 16, 2022, 09:16:27 AM
This is the thing that bugs me the most about the crypto world. They do not even know what a ponzi is and they still like to talk about what type of scam something could be. Centralized exchanges are just like banks, they take people’s money and let them do whatever they want with it, while still keeping the ownership. You want to trade with it? Sure go ahead, you want to stake it, sure go ahead, you want to loan it out? Sure, just do that.
But all the time the money stays in the exchange, same as banks. The difference is that when banks collapse, government bails them out, but when an exchange collapses, there is nobody to bail them out and they just bankrupt right away.
because actually I am still new to crypto investment. and a few weeks ago more of my assets were kept in the Exchange. because at first I did not understand the big risk I faced when I put my assets on the stock exchange. But then after hearing the news about FTX. so I learned the lesson that as long as my assets are still on the exchange, it's the same as me still not having my own coin. so finally now I have moved my assets into a private wallet with a private key that only I know. I would be really surprised if such a big exchange and its CEO have done such a terrible thing with the customer's money in that exchange. it's a terrible thing but definitely a lesson for many people like me who are new to crypto investing. But all the time the money stays in the exchange, same as banks. The difference is that when banks collapse, government bails them out, but when an exchange collapses, there is nobody to bail them out and they just bankrupt right away.
November 16, 2022, 09:06:20 AM
I think a common feature is that both can scam people and both can fail as business models. The difference is that ponzi scheme is meant to be a scam, it's designed as a scam and can't function without relying on the majority losing. Crypto exchanges, on the other hand, can be managed in ways where everyone wins: people get the services they want, exchanges get profits from the fees, traders can profit from making well-timed buy/sell orders. So it's not a scam per se, unless you'd agree that banks are a scam, for example, as they also don't really have the money of their customers and can both go genuinely bankrupt and scam their customers.
November 16, 2022, 08:37:42 AM
Sam Bankman-Fried has a degree in physics and a minor in mathematics...
What an irony in the fact that someone trusted a man named Bankman, and it is even more ironic that he managed to sell them his worthless token and with all his tricks managed to destroy the company in a very short time. Maybe he is one of those fanatics who, like Kwon, enjoy watching companies fail, and maybe they take even greater pleasure in destroying their own company.
When I first saw that man, I thought it was some kind of joke - because to me he seemed quite incapable of keeping an ordinary chicken coop, let alone a crypto exchange.
November 16, 2022, 06:35:35 AM
But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.
Yes like you said the CEO handling of customer money in a way that they are no more in the spreadsheet or balance of the exchange account, this is fraud. Fraud is in different forms. Ponzi scheme purpose is to finally run with money from people and if exchange embezzle people's money in the manner using it to gamble or trade, it is fraud like ponzi.
November 16, 2022, 04:54:36 AM
FTX had become the recent trend of fail exchange that lack strong team that will make a better exchange. We should know that their is a different between an exchange and ponzi scheme. Most exchanges that short down do not do so because they intend to go away with customers funds. This happens mostly because of hacking, bad management and other factors that can easily tag a company bad and we should not be happy when many had lost their funds without having a an that they will get compensated.
I think they have a strong team because if not then they won't grow and became popular but I think they got greedy and not contented on what they currently have. This is where they messed up with the users funds in hopes of growing it more bigger but they fail and now they are in this sticky situation. Once again, this shows that greed isn't a good quality to adopt with it.What happened with FTX is intentional and not a cause of bad management. I heard hacking have also happened afterwards but there are rumours which says that the hack was intentional or an inside job. Many will say that FTX is not far from a ponzi but there are still other exchanges which are not like that. Users should only stay vigilant and don't store most of their funds inside a cex, just in case history repeats itself.
November 16, 2022, 04:37:26 AM
Since actions like this persists, then cryptocurrency exchanges should be regulated. They should be a certain amount, just like banks, on reserve before an exchange gets established, so if they go bankrupt the funds can be used to settle affected customers. The differences between a Ponzi site and exchange is the eligibility to swap currencies on exchanges and Ponzi sites don't come out plain to tell customers that their money is gone, they disappear.
What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.
In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.
November 16, 2022, 04:11:10 AM
Ponzi is where you deposit 1 and get 2 in short time, few tokens also offer staking that similar like ponzi where the return is to good to be true. Centralized exchanges isn't a ponzi if you only use the exchange feature and you wouldn't lose your coins since in staking you need to leave your coins on the exchange.
This is the thing that bugs me the most about the crypto world. They do not even know what a ponzi is and they still like to talk about what type of scam something could be. Centralized exchanges are just like banks, they take people’s money and let them do whatever they want with it, while still keeping the ownership. You want to trade with it? Sure go ahead, you want to stake it, sure go ahead, you want to loan it out? Sure, just do that.Btw DEX is also not secure, remember there's this rug pull thing...
I believe you're refer to Uniswap, Pancakeswap etc that's not a DEX, but they're just a swap platform. A real DEX doesn't hold your coins, similar like Bisq and it's really high security since the exchange never got hacked and the developer purpose is not to make money.But all the time the money stays in the exchange, same as banks. The difference is that when banks collapse, government bails them out, but when an exchange collapses, there is nobody to bail them out and they just bankrupt right away.
November 16, 2022, 03:38:48 AM
This happens everywhere. cryptocurrency exchanges need hot money to compete, and this hot money is not present in the form of investments, shares from investors, government support, etc. Therefore, many platforms resort to self-financing, which is printing more tokens to obtain funds to buy REAL cryptocurrencies or enter into a spiral of loans and others.
If the platform manages this money well, it will prosper and may not stand if a blow is directed at it, but what happened with FTX is a complete mess that led to this rapid collapse.
If the platform manages this money well, it will prosper and may not stand if a blow is directed at it, but what happened with FTX is a complete mess that led to this rapid collapse.
November 16, 2022, 02:14:15 AM
A Ponzi scheme is a scam with no real underlying business generating revenue, and later contributor funds simply pay off earlier contributors.
Ponzi schemes and pyramid schemes are both ways of generating the appearance of spending without real income. While tulips can be very valuable, the outlays in the business are usually so small that it can hardly be called a true investment versus speculation.
Ponzi schemes and pyramid schemes are both ways of generating the appearance of spending without real income. While tulips can be very valuable, the outlays in the business are usually so small that it can hardly be called a true investment versus speculation.
November 16, 2022, 01:20:18 AM
I think in most cases it boils down to greed and poor management decisions. Let's look at Mt Gox as an example... When Jed McCaleb handed over Mt Gox to Mark Karpelès.... he was under the impression that Mark Karpelès was capable to run it. Mark Karpelès had no business sense, he was simply a PHP developer and a small time entrepreneur. 
Sam Bankman-Fried has a degree in physics and a minor in mathematics... but to his credit, he made his wealth with Cryptocurrency arbitrage, so he gained some knowledge on Crypto Exchanges.
Sam Bankman-Fried has a degree in physics and a minor in mathematics... but to his credit, he made his wealth with Cryptocurrency arbitrage, so he gained some knowledge on Crypto Exchanges.
November 16, 2022, 12:35:31 AM
Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?
November 15, 2022, 10:53:56 PM
so in case of ftx, i don't think sam was thinking of having this failure knowing that it will surely ruin his reputation in crypto world.
He saw an opportunity to take a huge risk, and he stupidly did. Dude was printing so much money with the FTX platform but yet he decided to a unnecessarily retarded risk.
November 15, 2022, 07:30:28 PM
FTX had become the recent trend of fail exchange that lack strong team that will make a better exchange. We should know that their is a different between an exchange and ponzi scheme. Most exchanges that short down do not do so because they intend to go away with customers funds. This happens mostly because of hacking, bad management and other factors that can easily tag a company bad and we should not be happy when many had lost their funds without having a an that they will get compensated.
November 15, 2022, 05:24:57 PM
They may be a regulated company and these exchanges have the blessing of the government where they're operating. But their moves are unregulated and they can do inside jobs just as what happened to FTX.
They don't care about the trust that has been in them from their depositors, it's a thing that they've taken advantage and I doubt it that they'll feel sorry for what they've done.
It's worrying that this has happened from one of the ex-trusted exchanges and who knows how long they've been doing this.
They don't care about the trust that has been in them from their depositors, it's a thing that they've taken advantage and I doubt it that they'll feel sorry for what they've done.
It's worrying that this has happened from one of the ex-trusted exchanges and who knows how long they've been doing this.
November 15, 2022, 02:24:56 PM
Exchanges being insolvent due to whatever reason isn't anything new — that's one of the reasons why the quote "not your keys, not your coins" has been repeatedly said thousands of times already.
But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.
But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.
they are of different types of businesses. because ponzi schemes at the very beginning have their intentions of screwing up people. on the other hand, if you are running legit exchange, you want your business to grow and expand throughout the years. so in case of ftx, i don't think sam was thinking of having this failure knowing that it will surely ruin his reputation in crypto world.
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