Say I mint an NFT and then purchase it myself for a high price. The next transaction will be Likely ahead of that price correct? Besides gas fees, what’s stopping by people from pumping their own NFTs?
Nothing. My outsider understanding is ... this is exactly what's happening.
The usual "crypto bad" argument is calling it a Ponzi scheme. This doesn't count as one of those either, but no one really cares.
Also not a pyramid or Ponzi scheme (as you probably know) or much different than Beanie Babies. This is how capitalism is supposed to work.
> Not to mention obvious Ponzi schemes
The obvious ones are the ones which actually are Ponzi schemes (eg BitConnect, PlusToken).
a ponzi scheme pays out dividends or interest from deposits. unless tether is taking money from tether sales and paying it out to holders a kickback, it doesnt fit the definition.
printing shares of tether and having more shares out than underlying collateral (which im not accusing them of doing) is just fractional reserve lending...
When something is part of a limited edition run or a small batch production or a collection, buying a duplicate that isnt signed by the authors is "worthless." Unless for some reason the forgery manages to obtain its own fame and value.
The thing is, and this is true for every market including the S&P500 - until the new money slows down, people will still profit no matter how little sense it makes financially
As far as I understand the whole GME fiasco, this is exactly what was going on (in reverse)
Being a “next transaction” is a mighty assumption. Just because you list something high doesn’t mean anyone is willing to actually by what you list. If that were the case, the values of an NFT project would theoretically never dip.