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A comment on Coinbase suspending USDC:USD conversions over the weekend. Parent comment

Re:Coinbase suspending USDC:USD conversions over the weekend by pcthrowaway on Saturday March 11, 2023 @01:10AM (#35105929)
Is a bank a ponzi scheme if its assets don't exist also?

Like if a bank has $10B in customer deposits and one of their armored truck drivers escapes across the border with $2B, then some customers can't be paid back when they try to withdraw, does that make it a ponzi?

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Re:Coinbase suspending USDC:USD conversions over the weekend by re-thc on Saturday March 11, 2023 @03:03AM (#35106420)
If you can't be paid at all it's not a Ponzi. The point is to rely on newer funds to pay the older requests.
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Re:Coinbase suspending USDC:USD conversions over the weekend by selestify on Saturday March 11, 2023 @03:30AM (#35106558)
Banks also rely on “newer funds” (from loan payments) to pay “older requests” (customers withdrawing their deposits). When withdrawals from old requests rise so much that they can’t be covered by new funds, banks collapse.
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Re:Coinbase suspending USDC:USD conversions over the weekend by basch on Monday March 13, 2023 @03:13AM (#35132214)
Not just to pay old requests. To pay revenue sharing / dividends / interest to shareholders. A Ponzi scheme is repurposing inflows to appear as revenue to a fake business.
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