To the Moon: Shitcoins are Ponzi Schemes

[ven7net]

According to Investopedia, "The term shitcoin refers to a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose."  They are characterized by short-term price increases followed by nosedives caused by investors who want to capitalize on short-term gains. On the other hand, "A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk."- Investor.gov. In my opinion, shitcoins are ponzi schemes, they have no goals, no direction nothing other than to rip-off folks who buy invest in  it  and hope that they're gonna make it big overnight not knowing that the odds are against them. I might be wrong but this is just what I think. Do share with me your thoughts. Thank you.

https://www.investopedia.com/terms/s/shitcoin.asp
https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme

On the one hand, you are right, since now there are a lot of cryptocurrencies that really do not carry value, but are simply created to receive money from those who buy these cryptocurrencies. In this case, it really looks like using a ponzi circuit. On the other hand, these cryptocurrencies still have a certain positive direction, namely, they help to attract more people to study and own cryptocurrencies, although this ultimately leads to the disappointment of many who ended up using such a scheme.

[lobo13hf]

In my opinion, shitcoins are ponzi schemes, they have no goals, no direction nothing other than to rip-off folks who buy invest in  it  and hope that they're gonna make it big overnight not knowing that the odds are against them. I might be wrong but this is just what I think. Do share with me your thoughts. Thank you.

I would like to call that as a new generation of ponzi scheme. Shit token using the new trick as scammers are creating more and more shit tokens to be listed on dex and they were also manipulating the price of their own tokens to attract the liquidity provider to come and then they make the liq provider feel confidence and it turns to be a new scam project after that. You're not wrong but shit scam token didn't the same like traditional ponzi scheme that already explained. Shit token were having the new mechanism as the blockchain makes the scammers tried to abuse the decentralized system through issuing the garbage tokens to be traded by the new users in the crypto market. that's why there are so many rug pull happened with various shit scam tokens in the market.

[gabbie2010]

According to Investopedia, "The term shitcoin refers to a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose."  They are characterized by short-term price increases followed by nosedives caused by investors who want to capitalize on short-term gains. On the other hand, "A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk."- Investor.gov. In my opinion, shitcoins are ponzi schemes, they have no goals, no direction nothing other than to rip-off folks who buy invest in  it  and hope that they're gonna make it big overnight not knowing that the odds are against them. I might be wrong but this is just what I think. Do share with me your thoughts. Thank you.

https://www.investopedia.com/terms/s/shitcoin.asp
https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme

On the one hand, you are right, since now there are a lot of cryptocurrencies that really do not carry value, but are simply created to receive money from those who buy these cryptocurrencies. In this case, it really looks like using a ponzi circuit. On the other hand, these cryptocurrencies still have a certain positive direction, namely, they help to attract more people to study and own cryptocurrencies, although this ultimately leads to the disappointment of many who ended up using such a scheme.

The so-called shit coins are created to scam unsuspecting investors using some form of tricks by temporarily pumping the coin in a bid to decieve and attract a lot of investment by investors and thereafter dump it, this is very common in the crypto market, I will term those shit coins as Ponzi scheme and these common practice has been painting cryptocurrencies in a bad light, to avoid investing in such coins newbies need to research thoroughly before investing in any coin possibly investing in the well known and reliable coins.

[yayayo]

Yes and a lot of people are falling for this scheme to the reason of they earn after they invite someone to invest but they didn't know what is the bigger picture or how things works in reality. I see a lot of people inviting me to invest on something and they say I will earn by inviting others and whenever I tell them that it's a ponzi scheme they laugh at me and say I don't know how things works.

ya.ya.yo!

[Strongkored]

The goal is the same to scamm people but the method is very different, the ponzi scheme is really made to deceive but shitscoin may not initially, but the inability to develop their coin so that it ends up being a scam. Both really hurt a lot of people but the weird things is both are still chosen by many people to make a quick profit, it's very unfortunated.

[Alanaz]

some of them are like that but not all shitcoins have the same goal I think because sometimes there must be a project that is almost the same but with good intentions because we really can't equalize all of that.
on the other hand my view of them would not be a scam or anything because they are just doing business and the fault is not actually in the project, because they already know that it is a scam but people still intend to go there.

[GeorgeJohn]

At first you have to understand what ponzi scheme is all about, ponzi simply means something or an investment that is not trustworthy, when scrutinizing ponzi scheme it only showing negative in investment, so to cut it very short, ponzi scheme platform or investment is made of pure scam weather is shitcoin or not, so op i want you to get it right, that any forms of ponzi is not trustworthy for investment.

[Ngewex Yuk]

This is the need for us to make strict regulations for the creation of new projects and audits of existing projects in the market, maybe this is tiring but to go in a better direction, as investors it is certainly very difficult to distinguish shitcoins or not, they only think profit and look promising.

[StarKay]

According to Investopedia, "The term shitcoin refers to a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose."  They are characterized by short-term price increases followed by nosedives caused by investors who want to capitalize on short-term gains.

It is easier to define shitcoin than to identify one this days because any promising coin can lose it's value overnight due to team mismanagement, hacking, rugpull, or functional obsolescent.
The relationship between shitcoin and Ponzi is that they're both fraudulent schemes but they are not the same.

[sana54210]

In my opinion, shitcoins are ponzi schemes, they have no goals, no direction nothing other than to rip-off folks who buy invest in  it  and hope that they're gonna make it big overnight not knowing that the odds are against them. I might be wrong but this is just what I think.

I definitely will not have different opinion on shitcoins.
Shitcoins are just cancer to this cryptocurrency world which slowly killing the health of all crypto adapters financially.

In my opinion as well, shitcoins are not having any big differences from ponzi schemes. Both are planned just for the reason of sucking innocent investors' hard earned money. I guess this community must start some initiative to safeguard those naive investors from all exiting and upcoming shitcoins. Otherwise, the actual investments which are intended to bitcoin and other good coins might get deviated and lost forever.

[South Park]

Yes and a lot of people are falling for this scheme to the reason of they earn after they invite someone to invest but they didn't know what is the bigger picture or how things works in reality. I see a lot of people inviting me to invest on something and they say I will earn by inviting others and whenever I tell them that it's a ponzi scheme they laugh at me and say I don't know how things works.

ya.ya.yo!

We always need to be careful but we need to incredibly watchful of those that invite us to one of those scams, after all there are only two possibilities, the first one is that they legitimately do not know that what they are promoting is a scam, in which case you need to be careful because they are too naive for their own good, however the second scenario is that they in fact know that they are promoting a scam and in that case it is better to avoid such people at all costs as they do not care at all about the fact that you will lose money by investing in that project.

[Distinctin]

They are all scams but that doesn't mean you will lose your money automatically. Some investors loves to take the risk and play with it,  but we have to understand that it's very risky, without proper knowledge, we might lose a lot of money investing in shitcoins.

On  Ponzi Schemes, usually, the ones who make money are those who invested early, but we should not support this kind of fraud as even if we make some money from it but the majority of people will lose and we only become an accomplice of the crime though no legal binding, but through conscience though.

[Gozie51]

In my opinion, shitcoins are ponzi schemes, they have no goals, no direction nothing other than to rip-off folks who buy invest in  it  and hope that they're gonna make it big overnight not knowing that the odds are against them. I might be wrong but this is just what I think. Do share with me your thoughts. Thank you.

Shitcoins don't rip-off folks but instead some have made huge money out of such coins. Coins like dogecoin in example has gone up last year when there was rally and also Shiba now occupying good position in CMC. You have to understand that shit coins are for fun they turn investors either into profit within few days or you doubt or regret in losses , it is about risk and not to profit all day,

[Slow death]

the scariest part is that every month there are many new shitcoins coming on the market and always with innovative ideas like altcoins of memes, or altcoins of Japanese food or altcoins named after a Japanese dog and people believe in these nonsense altcons. I wonder if people love and value the money they have? why is it not normal that they are putting money in these shitcoins

[terrorJR]

the scariest part is that every month there are many new shitcoins coming on the market and always with innovative ideas like altcoins of memes, or altcoins of Japanese food or altcoins named after a Japanese dog and people believe in these nonsense altcons. I wonder if people love and value the money they have? why is it not normal that they are putting money in these shitcoins

the pattern is still the same as usual the tactics and strategy are the same so I don't really care what they do, the projects they run as long as it's still the same as before I don't want to interfere with him.
the reason is very clear. too many things like this make a loss for some people who really don't understand how it works

[South Park]

They are all scams but that doesn't mean you will lose your money automatically. Some investors loves to take the risk and play with it,  but we have to understand that it's very risky, without proper knowledge, we might lose a lot of money investing in shitcoins.

On  Ponzi Schemes, usually, the ones who make money are those who invested early, but we should not support this kind of fraud as even if we make some money from it but the majority of people will lose and we only become an accomplice of the crime though no legal binding, but through conscience though.

I think the same way as well, there are out there some people that can think of nothing but to get profits for themselves and they are willing to invest in Ponzi schemes even if they know they are a fraud, and they do this because as you say if you are early enough then you may actually turn out a profit, but even if that is the case it is simply wrong as the person doing that is benefiting from the naivete and the disgrace of others, and that is simple unforgivable as they are also taking advantage of those that are ignorant about these kind of scams.

[IadixDev]

From what i understand, people who are involved in ponzi often don't even do it on purpose. Even madov i think i remember it's the same case, maybe he said this to whitehash himself thought. But often you have people who want to start a legit buisness, and start to promise huge interest rate, but then they can't realise those interest, but ends up with lot of monney in their hand, and go into faking it until they make it by paying interest with the monney they have. But huge interest rates are hard to make and it often ends bad with those so called ponzi schemes.


I believe it must be very easy to slip on the slippery slope without even really being realizing that the outcome is going to be bad or realising how the dynamics is playing out in the long run. Especially in the first stage when the punchline work and there is a good stream of new investor flocking in.

So morality often be careful when big interest are promised without a solid plan behind. Because needs to be very good to pull good interest rates in a sustainable way.

[Quidat]

They are all scams but that doesn't mean you will lose your money automatically. Some investors loves to take the risk and play with it,  but we have to understand that it's very risky, without proper knowledge, we might lose a lot of money investing in shitcoins.

On  Ponzi Schemes, usually, the ones who make money are those who invested early, but we should not support this kind of fraud as even if we make some money from it but the majority of people will lose and we only become an accomplice of the crime though no legal binding, but through conscience though.

I think the same way as well, there are out there some people that can think of nothing but to get profits for themselves and they are willing to invest in Ponzi schemes even if they know they are a fraud, and they do this because as you say if you are early enough then you may actually turn out a profit, but even if that is the case it is simply wrong as the person doing that is benefiting from the naivete and the disgrace of others, and that is simple unforgivable as they are also taking advantage of those that are ignorant about these kind of scams.

Some of them are fully aware but still decided to play with fire because making profits with shitcoin are totally possible if you do able to get in on the right time
and able to get out on the right time because we know that pumps could really happen even on the most shittiest coin in the market which means that you would
really need to be that aware on what you are doing rather than making yourself get blinded and able to make yourself get behind and ending up
on losing money and some do even bought on the peak on where most newbies do commit out.

[asriloni]

True, In my understand if you can become the early joiners and then you will always be a winner once it will be pumped to attract the little shrimp to join in the market. The pump will give the way for the early buyers to go out from the market once the whales are trying to make more money from the new comers that come to the shitcoins. It has almost similar mechanism with how the Ponzi work these days.
I would like to call that as a new evolution of Ponzi system but so many newbies didn't care about that and they are only aiming to make fast money from the shit tokens.
Shit tokens offer nothing to its hodlers and it was only full with bullshit promises. It's also a gambling at the same time as any shit token investors will always think whether their shit tokens can be pumped or not.

[bluebit25]

Pump and dump is inevitable in any industry

Especially with an uncontrolled market it's easier, we've seen the market go crazy with stuff that I find ridiculous and superfluous. But it's a development process, even if we deny it, but it also creates many new trends.