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Posted November 15, 2022 11:07 · last edited November 15, 2022 11:08

To chime into the FTX conversation above...

Calling FTX (and by extension crypto) a Ponzi scheme shows a lack of understanding about what has actually caused FTX's downfall.

Yes there is Ponzi scheme like behaviour surrounding the FTT coin (and some disturbing behaviour from FTX's CEO), but fundamentally FTX (the exchange) gave customer money to Alameda (the trading firm) to trade against, and Alameda lost it. It is quite simply stealing.

Crypto - an inherently worthless asset - is no more or less a ponzi scheme than any other asset. It holds value because people believe it has value. No different to fine art, gold, or money.

Very different to what happened at FTX.

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Unknown editor edited November 15, 2022 11:08
To chime into the FTX conversation above...

Calling FTX (and by extension crypto) a Ponzi scheme shows a lack of understanding about what has actually caused FTX's downfall.

Yes there is Ponzi scheme like behaviour surrounding the FTX coin (and some disturbing behaviour from FTX's CEO), but fundamentally FTX (the exchange) gave customer money to Alameda (the trading firm) to trade against, and Alameda lost it. It is quite simply stealing.

Crypto - an inherently worthless asset - is no more or less a ponzi scheme than any other asset. It holds value because people believe it has value. No different to fine art, gold, or money.

Very different to what happened at FTX.