Before going any further I would like to clarify that I have no evidence to suggest the people behind NuBits and NuShares have intent to defraud. This article merely aims to highlight the structural problems with NuBits as I see them. Some people have suggested that I should not use the phrase “Ponzi Scheme” because it could be offensive, but that would merely make me complicit and harm those who read this blog. Until new information surfaces that proves that NuBits has at least 100% reserve which are secure against theft, fraud, or misappropriation then I will maintain the fully objective, non-FUD, opinion that a NuBit is at best an unsecured IOU from unknown issuers. It only becomes a Ponzi scheme once NuBits is forced to print new NuBits to pay interest on old NuBits. They are not currently doing this, but due to the fractional reserve, naked-shorting that I believe is being practiced it is inevitable. Even Ponzi started out with honest intentions.
It is my sincere hope that the fans of NuBits can identify and clarify any misunderstandings in this post. If you have identified the secret to high-liquidity, low-risk, pegged crypto-currencies then it is something I want to understand and share with my readers.