Unregulated cryptocurrencies, including Bitcoin, are “the largest Ponzi scheme in human history.” This is the view of the CEO and co-founder of Red Date Technology. BSN Yifan expressed it in his article in The People’s Daily.

He drew a parallel to fraud, pointing to the lack of liquidity and value, the existence of insider trading and security vulnerabilities, and the constant influx of new investors.

“[…] “The operation of all cryptocurrency projects is purely marketing-based and technical investments are insignificant,” he said.

The head of Red Date Technology cited the collapse of the Terra ecosystem to support his position:

“There are many views as to why LUNA and UST suddenly collapsed, but one point few people mention is that they combine two types of intertwined Ponzi schemes based on cash and stocks.”

Yifan also mentioned Elon Musk and Dogecoin. According to him, a “random tweet” by a billionaire could push the price of the meme-cryptocurrency “one meter off the ground.” However, he acknowledged that with the proper oversight of the authorities, a part of the market cannot be considered a financial pyramid.

“USDC or USDT are payment currencies, not speculative assets. Once fully edited, they will be fine, ”says the article.

Models that Yifan criticizes M2E and P2E. According to him, the developers have created a “trap” for users in the name of the continued growth of viewers. Previously, STEPN, one of the popular representatives of the industry, announced the termination of the service for users from China.

The head of Red Date Technology emphasized that he is not a fan of bitcoin and similar cryptocurrencies. In his article, he reminded that digital assets were criticized by Microsoft founder Bill Gates and billionaire investor Warren Buffett.

In a comment to Cointelegraph, Yifan added that governments such as El Salvador that legalized BTC “seriously need basic financial education.”

“Otherwise, they put entire countries at risk unless their main intention is to create state-owned crypto trading platforms and defraud their citizens,” the source said.

In June, Salvadoran President Nayib Bukele advised investors not to worry about the prices of the first cryptocurrency. According to him, investments in digital gold will increase “immeasurably” after the end of the bear market.

Against the background of the collapse of Bitcoin on June 13, the “paper” loss from BTC held in the country’s state fund exceeded $ 46.1 million.

Recall that in December 2021, Chinese authorities announced that metaverses and NFTs can be bubbles, Ponzi schemes or other types of financial fraud.

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