NuBits Scam

[bytemaster]

I want to highlight that a system must produce market value.   Issuing a token and letting it trade freely is not a scam as long as everyone knows its value is only derived from market demand. 

Their synthetic demand trick could work for a very long time during the growth phase. 

I would say that it is better than bitcoin mining as an issuance strategy.

As a pegging strategy it is very flawed. 

Imagine you had a company that wanted to prop up its share price today by buying back shares.  It funds this buy back with future debasement of its shares. 

It benefits long term commitment at expense of day traders.  It reduces emotion driven volatility and creates demand from those who wanted to hold long term but would have changed their minds. 

You essentially pay people to take a vested interest in your company.  These people now have greater incentive to make your company work because they can no longer dump in the short term. 

Nubits is an alt coin of unknown supply decided by nushares which have no financial feed back that I see. 

It is like the fed printing dollars which is independent of the value of their own assets.

[cass]

Interesting comments dan 

[carpet ride]

After NuBits was exposed to the world, Dan Larimer saw it for the ponzi scam that it really is. His analysis should be here at the top of a thread and perhaps parked in the NuBits section..  Hopefully we don't see anyone taken advantage of

... it all depends upon trust in a central authority to perform market intervention to buy back NuBits.....

This is not accurate.

There is no central authority and there is no need to buy back NuBits to support the price when demand is in decline. Instead, shareholders spread throughout the world can vote to provide incentives to hold NuBits by offering interest rates on parked NuBits.

Delayed inflation dependent upon continual growth to prevent losing all value. 

Tell me this...  If the dollar was loosing value and the us government decided they would prop it up by paying interest via inflation would you lock your savings away in a cd hoping that the interest earned would outpace the very inflation it creates?   

Would you trust the fed to buy back dollars with their assets to stop inflation.

I don't throw around the ponzi accusation lightly, but nubits is the first crypto I have seen that fits the description. 

Propping up demand by increasing future supply hoping to sucker in a greater fool with the promise of more unbacked assets.   

Sooner or later you run out of suckers willing to hold out for increased future demand at any interest rate.