Earlier this year in July, products that have been resembling âPonzi Schemesâ have been âtopping the chartsâ amongst decentralised applications (dapps) which are running on the globes second biggest blockchain. For those of you who donât know Ponzi schemes are:
âA Ponzi scheme is a fraudulent investing scam promising highÂ rates of returnÂ with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors.â
âThe scale of this wallet, the scale of these bots. The amount of sheer gas being used. I genuinely think youâre probably looking at a crime syndicate running in china to scam people on a scale the Ethereum network has never seen beforeâ¦ itâs very bad.âDevelopers arenât the only ones who are worried Analysts, users and more have had alarm bells ringing on multiple different online channels over the chaos of this transaction activity being caused through this new gambling dapp. Following the days after the launch, comments on Etherscan proved that this activity was transparent, and users were noting that the app was outperforming even those it was designed to copy. The blockchain monitoring and analysing firm, Amberdata explained to CoinDesk that the FOMO 3D dapp copy has resulted in the Ethereum blockchain being under heavy fire.
âOverall, about $50.7M of value (incoming Â£29,000,000 and outgoing: Â£21,750,000 together) has transmitted through this contract.âThe accusations of scam put forth by Team JUST against the LastWinner dapp have brought up questions which lead back to the intentions of the original game. However, even Bitcoin has been classed as a Ponzi scheme by critics of the cryptocurrency.