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Matt Levine characterised these schemes as

> The basic structure of the trade is (1) Ponzi, (2) acceptance, (3) diversification, (4) permanence

But it seems backing it with a virtual currency that can go to zero and diversification with another virtual currency wasn't a sound plan.

https://www.bloomberg.com/opinion/articles/2022-05-11/terra-...

Crypto has become forever mired with the worst parts of banking and none of the benefits of currencies backed by entities with reserves that have value, and supported by laws, taxes, and large militaries.



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