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What We're Reading: Bloomberg Publishes Major Story on Crypto, Denoting Every web3 Project Simultaneously as a Ponzi Scheme

Submitted by Jaime Sharp on October 27, 2022

"A massive 40,000-word report on cryptocurrency that appeared on Bloomberg stirred some controversies."

"According to the article written by journalist Matt Levine, 'every web3 project is simultaneously a Ponzi scheme,' as most tokens are purchased with the purpose of selling them for a higher price, and not because the buyers want the product. According to Levine, the NFT is technologically weak, there's a general negative sentiment about the tokens, and legal grounds of ownership are concerning, considering that buying an NFT buys you a notation on the blockchain, giving you the ownership of a web server and not the token itself."

"With few notable exceptions, including nonfungible tokens made on the Art Blocks platform, the majority of NFTs are not on the blockchain directly but are on the server that is on the blockchain. Kevin McCoy, an early inventor of the NFTs, on the other hand claims that despite abuses, the NFTs do have collector's value as pieces of digital art."