Re: How to Identify a Ponzi

[Bitcoin Oz]

This kind of huge scams will certainly affect the bitcoin economy and credibility. And why are we browsing these forums? Only to speculate? That's why I think the moderators should ban anything that resembles to a ponzi scheme, to protect both users and bitcoin.

I dont see how they can ban lending and borrowing on the forum.

[puffn]

How does the 'Dead Man Switch' work again, exactly ?

I am confused....and still short a few Bitcoins.

It is a chest hidden in Davy Jones' locker.

[stochastic]

This kind of huge scams will certainly affect the bitcoin economy and credibility. And why are we browsing these forums? Only to speculate? That's why I think the moderators should ban anything that resembles to a ponzi scheme, to protect both users and bitcoin.

While I think people will always fall for these too-good-to-be-true and get-rich-quick-schemes, wise investors will require personal information from people they are loaning money to.  They will know exactly what they are doing with that money and when they will get it back.  Anything short of that is a bad investor.  Invest in what you know, and if you don't know what your investment is doing then you are not investing, you are gambling.

[dust]

Why was this thread moved to "Service Discussion" from "Long Term Offers"?  It should be stickied in the long term offers imo, to warn potential lenders of scammy deposit offers.

[finkleshnorts]

Why was this thread moved to "Service Discussion" from "Long Term Offers"?  It should be stickied in the long term offers imo, to warn potential lenders of scammy deposit offers.

I think it belongs in long term offers, stickied or not.

[BadBear]

It wasn't moved it was split, it's discussion about how to recognize ponzis and the dangers, not another Pirate thread.

[iCEBREAKER]

One clear sign that pirate was/is operating a pony is that he is forced to close his business because of the fact that many investors wanted to get their principal investment back at the same time. Otherwise why does it matter if they want their bitcoins and he has them right? Also there shouldn't be a delay if he has all of their funds. So far he hasn't returned all investor coins....

Investors must practice due digilence and not risk more than they can afford to lose.

EG:



Ask the right questions, or you could get caught in a pony scam!

[Hunterbunter]

One clear sign that pirate was/is operating a ponzi is that he is forced to close his business because of the fact that many investors wanted to get their principal investment back at the same time. Otherwise why does it matter if they want their bitcoins and he has them right? Also there shouldn't be a delay if he has all of their funds. So far he hasn't returned all investor coins....

One possible flaw in this otherwise stellar logic is that he may have actually been using most of the coins for a productive purpose. How can he both invest the money he borrowed from people and pay them back at the same time?

Just saying.

[hgmichna]

One possible flaw in this otherwise stellar logic is that he may have actually been using most of the coins for a productive purpose. How can he both invest the money he borrowed from people and pay them back at the same time?

If I, hypothetically, follow your logic, he did not have to shut down all at once. He could have said, I will wind down my business and shut down your accounts one by one over the next three months.

Of course this is all nonsense, because we have a picture-book Ponzi scheme here. It is only food for thought for those who still think it possible that the pirate operated a legitimate business that produced 3,300% interest per year.