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Very Much Like A Ponzi Scheme

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@empress-eremmy
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With all the flak crypto has gotten recently from Trump, China and a confusing ELon Musk, it isn't surprising to see the bears continue to persist in this recent downward trend.

Every passing day brings fresh challenges and criticisms from the ignorant or those in government who don't want to see the blockchain revolutionize the status quo as far as the World's entire finance structure is concerned (and possibly beyond finance).

A big argument is that it has no legitimate backing as a legal tender (although things do appear to be changing) and is more or less a ponzi scheme where investors manipulate the markets in other to earn exponential returns and exit, leaving many other users with a coin that is essentially worthless and suffering varying degrees of loss.

It does appear that such scenarios do play out quite a bit in this space, and at an increasing space too. As the market is free and decentralized, the entry barrier is relatively low allowing for all manner of shitcoins to make their way in. Again Lured by ignorance and the promise of exponential yields, newbies (and even some of the older participants in the space) put in their money only to get burned at the stake, leaving many of them traumatized.

Even here on hive, I have come across a few accusations directed at token founders who hold majority stake and do not allow for equitable distribution. Early Investors are crucial to the formation of any app/token launched on the blockchain, hence it is only right they recoup their investments with decent profits to boot.

However, when the sole aim of launching a token is merely about seeking returns, then it should be rightly differentiated from what we consider as the revolutionary technology of the blockchain. Any token/app lauched on the blockchain should have at least some of the following features in my book to make it more legitimate:

  1. A good distribution strategy
  2. A healthy (or at least somewhat) market capitalization
  3. Value offering or proof of value
  4. Real life value offering

These are entirely based on my opinion and may not be exhaustive.

I believe number 3 and 4 to be the most important as it gives users a reason to believe and hold on to their tokens when the chips are down. Hive provide a reasonable amount of these qualities and its dapps are increasingly playing a bigger role in our social and financial spaces.


Posted via [proofofbrain.io](https://www.proofofbrain.io/@empress-eremmy/very-much-like-a-ponzi-scheme)