🥳We will be tracking 's ecosystem of #DeFi #Dapps powered by the Terra stablecoins and $Luna.
Terra, a backed project and CHAI, its payment dapp with over 1M onchain users🤩, are leading the way of #blockchain adoption.
dapp.com/article/dapp-c
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Caution: is acquiring users by offering discounts, not financed by merchants or by burning through investor funds. Instead they use pay-ins from new users.
Certainly looks like a Ponzi Scheme...
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That’s pretty much how every payment co’s acquire users in the beginning. Not Ponzi.
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"A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that ..."
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To claim that Terra the asset is a ponzi scheme according to your definition, there would need to be:
1. Earlier holders of Terra that is "paid a profit"
2. Later holders of Terra that makes a loss while in expectation of profit.
Neither is true.
Holding Terra isn't profit-yielding, there is no ordering of participants with diminishing returns, and there definitely is no information asymmetry anywhere in the stack.
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I don't think anyone minds we use Terra seigniorage to shave a few cents here and there for users, and the FSC certainly doesn't mind ;) Chai is a fully licensed payment gateway and e-money vendor in Korea, and we are fully transparent about our business practices with regulators
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19m00s "[...] instead of topping up 38 dollars, it will top up 100 dollars. In some sense, in the user wallet there is always a residual balance left. In the Terra system we call this seignorage."
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In 2009, Bernie Madoff lost investors $60 billion. He was sentenced to 150 years in prison.
In 2022, Do Kwon lost investors $60 billion after Luna collapsed to $0. He then created Luna 2.0.
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