"Trustless pyramid schemes" - doing untold damage and could kill Ethereum

[Eamorr]

There are two increasingly popular, so-called "trustless pyramid schemes" doing the rounds on the various forums at the moment.

The original (0.1 ETH, 1 ETH and 10 ETH):

http://pastebin.com/AGDsJL6j (already has 200+ "investors")

Now there's a 100 ETH smart-contract:

https://www.reddit.com/r/ethereum/comments/3gdxte/with_ether_price_as_low_as_it_is_maybe_another/

If these continue to gain legs, it could self-destruct the entire network. "pyramid scheme" is a toxic phrase that no legit business wants to touch.

The guy who discovered nuclear energy must have despaired when he realised his creation would be used for Nagasaki and countless others.

Sometimes I truly despair for humanity. Today is one of those days.

[1715331683]

1715331683

[bathrobehero]

It's just gambling. The only problem with pyramid schemes if people don't know about it or don't even know what it means.

[Eamorr]

It's just gambling. The only problem with pyramid schemes if people don't know about it or don't even know what it means.

I think people are sensible enough to stay well away from pyramid schemes.

It's interesting to examine the idea of a truly "trustless" pyramid scheme. The consequences of such a system are worth considering.

I think I might "invest" in the 0.1 ETH one, but just to see what all the fuss is about. There's only 67 "investors" there at the moment.

[monsanto]

There are two increasingly popular, so-called "trustless pyramid schemes" doing the rounds on the various forums at the moment.

The original (0.1 ETH, 1 ETH and 10 ETH):

http://pastebin.com/AGDsJL6j (already has 200+ "investors")

Now there's a 100 ETH smart-contract:

https://www.reddit.com/r/ethereum/comments/3gdxte/with_ether_price_as_low_as_it_is_maybe_another/

If these continue to gain legs, it could self-destruct the entire network. "pyramid scheme" is a toxic phrase that no legit business wants to touch.

The guy who discovered nuclear energy must have despaired when he realised his creation would be used for Nagasaki and countless others.

Sometimes I truly despair for humanity. Today is one of those days.

IMO you're taking those way too seriously. They are good as first tests of the contract system. Although I do agree with the prediction that the majority of popular contracts will probably involve gambling type schemes. No different really from the type of crap schemes that surrounds much of bitcoin.

[kelsey]

na ethereum's doing a fine job killing itself

[Eamorr]

na ethereum's doing a fine job killing itself

To be honest, I see this kind of sentiment (Bitcoin zealotry) a lot on these forums. I hope Ethereum does well, I really do. In fairness to them, they have rolled out an excellent smart contract platform. They're leading the way in that space.

But when the devs go to all this work and a pyramid scheme is the result, it's sad.

Crypto pyramid schemes like this should be banned. We ban child porn from the internet. I don't see why we can't ban so-called trustless pyramid schemes.

[stoat]

na ethereum's doing a fine job killing itself

To be honest, I see this kind of sentiment (Bitcoin zealotry) a lot on these forums. I hope Ethereum does well, I really do. In fairness to them, they have rolled out an excellent smart contract platform. They're leading the way in that space.

But when the devs go to all this work and a pyramid scheme is the result, it's sad.

Crypto pyramid schemes like this should be banned. We ban child porn from the internet. I don't see why we can't ban so-called trustless pyramid schemes.

Pyramid schemes do not advertise themselves as such.  These scripts are harmless fun and don't hurt anyone apart from the idiots who join them.

[Eamorr]

na ethereum's doing a fine job killing itself

To be honest, I see this kind of sentiment (Bitcoin zealotry) a lot on these forums. I hope Ethereum does well, I really do. In fairness to them, they have rolled out an excellent smart contract platform. They're leading the way in that space.

But when the devs go to all this work and a pyramid scheme is the result, it's sad.

Crypto pyramid schemes like this should be banned. We ban child porn from the internet. I don't see why we can't ban so-called trustless pyramid schemes.

Pyramid schemes do not advertise themselves as such.  These scripts are harmless fun and don't hurt anyone apart from the idiots who join them.

I think the guy that wrote the script is perfectly honest about the fact that it's a "trustless" pyramid scheme (as opposed to a conventional pyramid scheme involving sleazy salesmen, cheap hotel function rooms, dodgy cheques and cash).

By all accounts, the script is working and is paying "investors". There is no possiblity of running off with the cheque book or absconding to another country on a smart contract platform. If just 4 more participants join the current level, there will be another payout.