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The next Ethereum PonziCoin, which cropped up shortly after UET, did even better. It was also called PonziCoin, like its 2014 predecessor, but ran its own separate Ethereum token. It ran its own unique twist of the classic Ponzi scheme, taking advantage of Ethereum’s functionality and separate ETH market to programmatically adjust coin prices in line with demand. Basically, people could put money into the PonziCoin contract to buy PONZI coins. The contract allowed people to trade Ether for PONZI as well as trade PONZI for Ether at a quarter of the price they initially purchased it for. The trick is that the value of PonziCoin would automatically increase based on how much money was put into it, so anyone who gets in early enough can profit if the price rises more than fourfold. Like a classic Ponzi scheme or multi-level marketing system, the goal was to encourage buyers to get in early and then pressure others into purchasing. PONZI buyers were also treated to a message saying “also we need to be competitive with CryptoKitties’ cuteness so here’s a really nice dog ” if they were brave enough to have a punt. The game was a definite hit, pulling in around 250 Ether valued at more than $250,000 at the time, within just the first 8 hours. This spooked the heck out of the creator who just wanted to have a laugh, then realised it was making so much money that they might have accidentally crossed the line into running a literal Ponzi scheme and actually committing fraud. They swiftly announced that it had gotten out of hand and shut the game down before it got too crazy.

For the original version including any supplementary images or video, visit https://www.finder.com.au/a-brief-history-of-cryptocurrency-ponzi-games-up-to-fomo3d

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