Yesterday John Reed Stark labeled all of crypto as a "ponzi scheme". I respectfully disagree. And, this is the first time I've wondered if John was jilted by someone in crypto, and now has an axe to grind.
Labeling the whole scene as a ponzi scheme ignores and cancels out the great work of countless crypto entreprenuers who's sole intentions are to make the world a better place. And it ignores the facts. Which are, that there are countless shining stars. I know some personally.
Here's his tweet:
Calling the crypto-ecosystem a ponzi scheme is not hyperbole -- it's axiomatic.
As Frances Coppola explains in a Mastodon post: “The entire crypto ecosystem is a ponzi. The whole thing depends on ever more people parting with their savings and wages to pay the lunatic returns promised by the platforms to people who can provide the liquidity they so desperately need.” https://coppolacomment.com/2022/11/the-entire-crypto-ecosystem-is-ponzi.html?m=1
Along the same lines, Binance’s purported billion dollar bailout fund to help prop up (ahem, "rescue") the crypto-ecosystem proves once and for all how big the crypto ponzi scheme really is. (https://lnkd.in/geQWJx6E)
Meanwhile, per the SEC complaint against Binance, while Binance’s customers were signing up and believing Binance’s representations about its internal compliance systems protections against wash trading and market manipulation, CZ was doing just that. https://johnreedstark.com/wp-content/uploads/sites/180/2023/06/SECvBinance6-13-23.pdf
As famed economist and NYU Stern finance professor Nouriel Roubini has warned, "Who will bail out Binance when that crappy house of cards collapses? Crypto is the mother of all ponzi schemes!"(https://lnkd.in/grpQsmHU)
N.B. that way back on September 7, 2006, Roubini famously predicted the subprime collapse (https://lnkd.in/g9Ng99eC) and has become an outspoken and ferocious crypto-critic (https://lnkd.in/gm2uFeFB).
Ironically, Sam Bankman Fried himself essentially admitted that crypto was a ponzi scheme in an infamous April 25, 2022, interview with Matt Levine at Bloomberg, leaving Levine absolutely stunned.(https://lnkd.in/g2VBPXHD) (See, also: https://lnkd.in/gbK33vEp)
Other similar articles equating crypto investments as ponzi schemes:
-Is Crypto a Giant Ponzi Scheme?, by Concoda (May, 2022) (https://lnkd.in/gXFSCfdr)
-Podcast: Ponzi Schemes and Death by Fire with Nicholas Weaver (June, 2022) (https://lnkd.in/gYr9hQq6)
-Cryptocurrency Is a Giant Ponzi Scheme, by Sohale Andrus Mortazavi (Jacobin, January, 2022 (https://lnkd.in/gmWMUhde)
-Bitcoin: The PostModern Ponzi, by Stephen Diehl (January, 2022) (https://lnkd.in/gvaAWiAs) https://lnkd.in/gZhAuSC