Unregulated cryptocurrencies, including bitcoin, are “the biggest Ponzi scheme in human history.” This is the opinion of the CEO of Red Date Technology and co-founder BSN He Yifan expressed in his article for The People’s Daily.
He drew a parallel to the scam, pointing out the lack of liquidity and value, the presence of insider trading and security gaps, and the constant influx of new investors.
“[…] the work of all cryptocurrency projects is completely based on marketing, and technical investments are insignificant,” the author of the article noted.
In support of his position, the head of Red Date Technology cited the collapse of the Terra ecosystem:
“There are many opinions about why LUNA and UST collapsed in an instant, but one point that few people mentioned is that they combine two types of cash and stock based Ponzi schemes intertwined with each other. “.
Yifan also mentioned Elon Musk and Dogecoin. In his opinion, a “random tweet” by a billionaire could make the price of the meme-cryptocurrency “rise three feet off the ground.” However, he acknowledged that with proper supervision by the authorities, part of the market may not be considered as a financial pyramid.
“USDC or USDT are payment currencies, not speculative assets. Once they are fully regulated, they will be fine,” the article states.
Models criticized by Yifan M2E and P2E. In his opinion, the developers have created a “trap” for users for the sake of the constant growth of the audience. Earlier, one of the popular representatives of the sector – STEPN – announced the termination of service for users from China.
The head of Red Date Technology stressed that he is not a fan of bitcoin and similar cryptocurrencies. In his article, he recalled that digital assets were criticized by Microsoft founder Bill Gates and billionaire investor Warren Buffett.
Yifan in the comments Cointelegraph BTC-legalizing governments like El Salvador are “in serious need of basic finance education,” he added.
“Otherwise, they put entire countries at risk, unless their original intentions were to create state-owned crypto trading platforms and scam their citizens,” the source said.
In June, Salvadoran President Nayib Bukele advised investors not to worry about the quotes of the first cryptocurrency. According to him, investments in digital gold will grow “immeasurably” after the end of the bear market.
Against the background of the collapse of Bitcoin on June 13, the “paper” loss of the country from BTC held in the state fund exceeded $46.1 million.
Recall that in December 2021, the Chinese authorities announced that the metaverses and NFTs could turn out to be bubbles, Ponzi schemes, or other types of financial fraud.
Read about how the BSN works and why the Chinese government needs it in the Cryplogger exclusive:
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