Among china government ongoing to celebrate the huge decline of cryptocurrency markets this season, one key local blockchain expert has known crypto like a “Ponzi plan.”
Yifan He, Chief executive officer of Red Date Technology, a significant tech firm active in the growth and development of China’s major blockchain project, the Blockchain Service Network (BSN), has penned a brand new article dedicated to several types of cryptocurrencies as well as their supposed Ponzi-like nature.
Printed from our newspaper The People’s Daily on June 26, the piece describes private cryptocurrencies because the “biggest Ponzi plan in history.”
The writer pointed out the Terra network’s collapse, using the native token LUNA crashing 99% and also the algorithmic UST stablecoin losing its 1:1 peg value towards the U.S. dollar in May 2022. Also, he belittled the more and more popular virtual currency concept referred to as X-to-earn, talking about move-to-earn or play-to-earn projects, calling the model a “phishing strategy.”
The BSN chair also pointed out some well-known critique of Bitcoin (BTC) by Microsoft founder Bill Gates and legendary investor Warren Buffett.
He isn’t keen on Bitcoin or any similar cryptocurrencies themself too. “Currently all unregulated cryptocurrencies including Bitcoin are Ponzi schemes according to my understanding, just different risk levels in line with the market caps and quantity of users,” He stated inside a statement to Cointelegraph on Monday.
The BSN chair added he hadn’t had any cryptocurrency wallet or related assets ever: “I don’t touch them and will not touch them later on even when they become controlled since i don’t consider they have any value whatsoever.”
Based on He, governments like El Salvador — which opted to consider BTC as legal tender — “seriously need fundamental financing training.” “Otherwise, installed entire countries in danger unless of course their original intentions would build condition-owned crypto buying and selling platforms and scam off on their own citizens,” the professional told Cointelegraph.
While criticizing Bitcoin and lots of other crypto projects, He still believes that some area of the crypto market might be doing all right if it is correctly controlled. Cash-backed stablecoins like Tether (USDT) and Circle’s USD Gold coin (USDC) shouldn’t be considered Ponzi-like schemes, the BSN chair stated, stating:
“USDC or USDT are payment-related currencies, not speculative assets. After they are fully controlled, they’re fine.”
He formerly spoken in support of stablecoins in 2020. The manager once planned to integrate stablecoin payments into BSN by 2021. The program was eventually scrapped because of China’s hostility to crypto.
Related: China warns Bitcoin is going to zero but BoE looks around the vibrant side
This news comes among china government taking advantage of the continuing crypto market crash to warrant its multiple bans around the industry. The most recent coordinated ban was enacted in September 2021, with multiple Chinese government bodies following through to stop all sorts of crypto transactions in the united states.
Despite all efforts, China ongoing to become a dominant Bitcoin mining supplier worldwide. Based on data in the Cambridge Bitcoin Electricity Consumption Index, China was the second largest BTC mining hash rate producer following the U . s . States by The month of january 2022.
