Category: Burning Man
The Ethereum Smart Ponzi
Sunday June 12, 2016
The pirateat40 Ponzi scheme required a lot of work. Trendon Shavers had to manage all those incoming funds and payouts by himself. Because the consumers have come to expect convenience, a nice fellow has introduced an automated Ponzi scheme via Ehtereum. Instead of paying out old users with new users’ deposits manually, the smart-Ponzi does all the work for you! When people talk about how Ethereum is going to revolutionize the finance industry, this is what they mean: an economy completely based on Pyramid Schemes.
“I have a great opportunity that doubles your money!”
In the scheme above, which is honestly disclosed as a Ponzi, I counted about 400 people once I got to tier 5 and decided to stop counting. Although the contract only works on 1 ETH, I can only imagine a malicious entity repurposing this Smart Ponzi and receiving hundreds of thousands of ETH deposits. The sad reality is it’s only matter of time before an obfuscated DAP (decentralized autonomous Ponzi), starts this process of seeking deposits from gullible bag holders.