I don't know a thing about Vauld, so no accusations here, but surely people realize that anything offering +18% on what you can get from a bank will often be a ponzi scheme?
Network will be there. Cheaper the better. Just an option that has some value, not a killer app, doesn’t need to be. Funny system since you can put any junk there.
Only as long as they can make enough money off it. At some point miners will start compacting the history they keep or just straight up turn off their systems.
the unique issue is how a 51% attack could rewrite history, but that's also mitigated by how often people branch bitcoin from various states in history to their own new chains that have their own miners, inheriting and persevering all the stored stuff.
If you know what you are doing and have luck you can make very high returns.
Mostly people don't know what they are doing though and get into big trouble.
Well, obviously. You can gamble on red in the casino and get 100% return (with a 50%+ risk of losing everything).
The point is that these scammers presented the 18% APY gambles as virtually risk free "investments".
Is that something that you see them doing elsewhere?
except in this case it's not really a ponzi scheme, more of high risk investment (think junk bonds) gone bad.
no its not a high risk investment. no actual business goes to these crypto firms asking them for a such a ridiculous loan. so where does the money come from then? a steady stream of investment from idiots of course. they pay the early investors using the later depositors money. eventually you run out of fools and then this happens
Behind the scenes many of them are making money from volume capture and tiny but lucrative transaction fees, no different than Robinhood or Citadel, the perpetual nature just isn’t guaranteed and longer dated payment promises are perilous.
Lets say an organization is really making 100% ROI but doesnt want shareholders, they offer a competitive 18% return in a bond and thats that. Many more people believe the same you do if you told them a higher and truer number. “35%? Obvious scam”.
There are many market inefficiencies that scale up to hundreds of millions and billions of dollars
People don't understand “senior convertible debt” they understand “18%”
Many yield bearing products in the crypto space offered floating interest rates that adjust to market realities, these fixed interest rates ones are the ones unable to adjust.