portifornia,

Kinda sounds like a great way to launder money.

Poggervania,
Poggervania avatar

I wouldn’t be surprised if crypto was 99% being used for this purpose.

Don’t forget, it was popular on The Silk Road because it was hard to trace - a lot of rich folk probably saw an opportunity to move their wealth there

Shere_Khan,

except that the exchanges get hacked/shutdown/blackamiled every third wednesday. Ooops, lost a thumb drive, there goes 10 grand of crypto.

zlatiah,
zlatiah avatar

Ah... so you're specifically mentioning about the news article in question?

If you repay the loan, [your NFT token] comes back home. If not, [the token] gets a new owner. Simple as that!

I guess this explains everything... Probably just ppl hustling each other lol. And I assume given what types of shady characters are into NFTs, there are probably a lot of them who want to hustle another person out of some cash

Shere_Khan,

yeah, but its like, people are scamming people with nfts, using those scammed nfts to issue “loans” to scam people with cypto, so they can scam people with nfts, etc etc like is anyone actually making making money from this mess?

zlatiah,
zlatiah avatar

I wouldn't be surprised if someone does. I mean banks also just shuffle money around and guess who has a bunch of cash lying on hand so... Goes back to the gold rush era, but there are folks who mine the gold and folks who mine the miners

Also some tech companies can be at a loss for years but run on VC money

So... I don't know, but again I wouldn't be surprised if they are making something to keep this nonsense going

HurlingDurling,

Yes, the con men that are pushing this shit to their sheeple and then selling as soon as the price is high are, but everyone else is loosing money. Why do they keep doing it? Because it’s like gambling to them “this next one will for sure be a winner, I can feel it!”

intensely_human,

People make money at it, but nobody makes wealth at it

hahattpro,

Thank you for asking. Let me tell you the truth. NFT gamings, all of them, are Ponzi scheme.

If you look at NFT game as a game, sure, some games are good and have entertainment value, such as Axie Infinity.

But if you look at NFT games as source of income, then they are all Ponzi ?

Think, where the money comes from? Who will pay for the token, the “pet” you breed, the item you get from lootbox ? New user, i.e: new Investors.

That’s it. Use money from new investors to pay old investors.

If you are unlucky enough to hold the bag. I.e: player who have not sell their NFT before the game close. You lost your initial investment.

Saigonauticon,

A lot of the underlying scams are very low-tech. I sometimes work for VCs and get asked to investigate blockchain stuff (a lot in 2022, not so much now!). I’ve vetoed 100% of deals after investigation. For brevity, I’ll only describe the main two type of crime I’ve encountered.

Embezzlement of funds raised is a common one. Most are not exactly criminal masterminds though, and you can see the project accounts being emptied steadily into exchange accounts if you’re really determined.

A lot of the rest is wash trading. Usually exchanges will give you a zero-trading-fees account, and tell you that you need to maintain a minimum volume, wink wink. So most of these scammers just trade between accounts they own, to create the illusion of a sudden rise in price (coinciding with a marketing push). This you can also sometimes catch by looking at orderbook timing. Sometimes you can break their bots too. Often they hire external entities to manage this, so won’t notice overnight.

Anyway, in this last case there is usually just an illusion of people making money at the top. The price spikes, but the whole orderbook is just someone trading with themselves. So if you buy in, they take your payment (and they make a little money)… but there’s no one to actually sell to. You can detect this sometimes by looking for orders being placed then filled within very short time intervals. A lot of these groups make a lot less money than they claim to!

This is easier for NFTs because they are non-fungible. One way you can do this is to track which ones are owned by your company and which are something someone else bought. So you only trade the NFTs that are internally owned in a way that makes them look like they constantly increase in price. Once an NFT is sold to an external account, you cross it off the list and never buy it back, and it’s magically immediately worthless.

If you mention these activities on their official channels, they will just ban you.

There’s also a whole slew of regulatory compliance issues, fake legal opinions, and so on… but I’ll spare you those as it is more boring to read about.

The whole blockchain space is a cesspool of inequity. Stay far away, unless you just like playing around with cryptography for fun. In that case, it’s a cool toy and it’s fun to build a few blockchains in an afternoon to play around with before getting bored and moving on to other technology. I have built a dozen or so blockchains and a few smart contracts to make sure I fully understand the technology before recommending my clients reject investment deals. This has (perhaps ironically) made me somewhat of an expert in the domain, albeit an unwilling one. I consider that path a career dead-end, and look forward to slowly forgetting about it.

bob,

damn that’s a lot of work to scam folks

Saigonauticon,

Running an honest business is even harder :(

Although catching scammers is pretty fun. There have been some pretty wild cases. Maybe I should retire and go work for law enforcement or something.

Shere_Khan,

It sounds like larp gambling.

coconutxyz,

Pyramid

fiat_lux,

The repo and NFT itself is symbolic, it's just a digital signature on a contract. The people who are benefiting most from this are people laundering money who get to leverage traditional financial, legal and even extra-legal services with their equity. Even money is symbolic, given most of it doesn't physically exist and it may not even be pegged to a physical resource.

This is how, for instance, a Saudi prince might invest in a new business which he doesn't politically want to be seen as involved with. Should the business fail, the loan system ensures some form of potential loss recovery and debtor verification. Should the business succeed, nobody else needs to know and everyone is happy.

aeternum,

nfts are the biggest fucking scam. Fuck anyone who pushes this shit.

BaconIsAVeg,

Fuck anyone who pushes this shit.

Please don’t. There’s enough pollution in the gene pool as it is.

TehWorld,

This one is actually pretty straightforward. The middleman here charges interest and hopes the borrowers default so they can sell the assets at a profit.

Shere_Khan,

But how is a repo’d nft worth anything?

SomeoneSomewhere,

Presumably it’s worth the same as it would be if you simply sold it.

LufyCZ,

How is a sealed comic from 1967 worth anything?

Same thing, because someone will pay for it.

KeepFlying,

Pro ably not worth millions or anything, but I’m sure some schmuck would buy for $10 a pop at least.

fearout,
fearout avatar

Non-Fungible Tokens, or NFTs for short are shaking up the virtual universe, transforming how we vibe with digital assets.

Oh hello fellow humans. Let’s vibe with our digital assets for a bit since it’s something we do so often in our virtual universe. What assets do you especially enjoy vibing with?

itsmistermoon,
@itsmistermoon@feddit.cl avatar

I personally prefer my tokens to be of the fungible kind, to be honest. You know, those famous FTs.

fearout,
fearout avatar

Right? I’m funging on a token right now.

itsmistermoon,
@itsmistermoon@feddit.cl avatar

Nothing like a fresh funge out of your favourite token to start the day, am I right?

l0v9ZU5Z,

People pay money to use animated emojis on discord

Lemmylefty,
@Lemmylefty@lemmy.world avatar

Weird that they say they’re shaking things up when the whole point of them is to shake ‘em down.

001100010010,
@001100010010@lemmy.dbzer0.com avatar

“Nooo you can’t just download my NFT!!!”

“Haha download manager goes [beep, download complete]”

fubo, (edited )

It’s a multi-level scam.

The people at the top convince other people to put their money and effort in. They tell those people “this is going to be the next big thing, you just have to tell the world about it.”

Then those people write this stuff for them.

This sort of thing isn’t written by the people at the top of the scam. It’s written by their suckers, or their suckers’ suckers.

dingus,
@dingus@lemmy.ml avatar

Even if these weren’t a scam, they use intensive computer resources to add a layer of property ownership bullshit on top of an existing open data architecture simply so certain people can claim “ownership” over information. It’s a way to push the ideology that we should have “ownership” over the things we post to the internet, rather than it being a memetic collage of humanity.

All knowledge is based on previous knowledge. For knowledge to grow, access to information is important. NFTs is an attempt to make technology move backwards and deny access to information via technological means. I’d personally rather have places like Sci-Hub, which is dedicated to sharing information freely for the benefit of science worldwide.

Worse than just being a rejection of the open nature of data and how easily it can be transferred, it doesn’t actually do what it claims to do. One of the people who helped create the NFT spec in a programming jam calls out NFT peddlers by pointing out an NFT doesn’t contain any actual art, it only has enough bits to hold the URL to a piece of art. Technically, if the server the hosts your NFT disappears… so does your NFT. Because the NFT itself is just a hardcoded link to a piece of art that is verified by a series of hash-checks.

STUPIDVIPGUY,

this is the most accurate take on NFTs I’ve ever seen

fubo,

Yes, but this is just a scam. It’s about getting people to pay money for wisps of digital vapor.

STUPIDVIPGUY,

it’s really not a scam because people know exactly what they’re buying, they just beleive in a crazy backwards concept

fubo,

If I convince you to believe in a crazy backwards concept of magical water, and I use that to sell you homeopathic “medication” for your actual medical condition, I am still a scammer even if you believe in it.

STUPIDVIPGUY,

But NFTs don’t lie about curing diseases, they claim to be a receipt to a code that’s associated with an image. Which is honestly what they are. The issue is that it’s extremely overvalued but there’s nothing legally fraudulent about that, just consumers who have overvalued a dumb concept. I hate them but I’m just saying it’s not technically a scam

redballooon,

Hate to break it, but homeopathy also is legal.

ChaoticEntropy,
@ChaoticEntropy@feddit.uk avatar

You sound like you need more amethyst in your diet. Only a negligible amount more though, obviously.

STUPIDVIPGUY,

exactly my point… you can’t just call something a scam because you think it’s stupid

but nah just downvote me for being right

king_dead,

Same way pyramid schemes do: convince others that it makes cash and sell it to some sucker down the line

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