Re:The biggest crypto lending company is a ponzi scheme
by MathYouF on Thursday December 09, 2021 @10:01AM
(#29498046)
They call it a con because it involves instilling "confidence" in others.
High sale prices are one way to inspire confidence in others.
Whether that person thinks the sale price is a legitimate indication of value, or they think at least someone else down the line will believe that, is not always clear. Because of the nature of crypto anonymity, there's always at least some percent chance any given sale is a legitimate transaction between two unique and non-colluding parties, and vice versa.
High sale prices are one way to inspire confidence in others.
Whether that person thinks the sale price is a legitimate indication of value, or they think at least someone else down the line will believe that, is not always clear. Because of the nature of crypto anonymity, there's always at least some percent chance any given sale is a legitimate transaction between two unique and non-colluding parties, and vice versa.