Is Earth2.io a Financial Pyramid (Ponzi Scheme)?
The answer is "No." Thank you. That's it π
Okay. I won't be like that. I will explain to you why π The quotes will be from Wikipedia.
We drive...
"A financial pyramid is a financial structure in which the profit of a specific participant is directly dependent on the contributions of subsequent participants, who are somewhat lower in this structure."
In Earth2, the profit is not dependent on the contributions of subsequent participants. In phase 1, we receive income from the land we own, and it is associated with the sale of new plots. These purchases may be made by existing investors. Attractive plots can be resold at a profit to existing users who do not have to be "lower in the structure". Basically there is no structure here. In subsequent phases, when the game is created and we are able to extract raw materials, there will be more opportunities to make profits and they are also not dependent on "drawing" more people.
"The mechanism of the operation of financial pyramids is based on attracting as many participants as possible by their founders".
This sentence makes no sense because every business needs it π
“The organizers usually encourage the participants of the financial pyramid to recruit more people. For this reason, financial pyramids are doomed to collapse in advance, because the system requires an avalanche inflow of new participants, and such a possibility is limited. A hypothetical pyramid, which would require each participant to recruit six more, already at the tenth level it would have to have a number of participants 60% greater than the number of Polish residents, and at the thirteenth level the number of participants much greater than the number of inhabitants of the world ”.
In Earth2, neither the organizers are trying to persuade anyone, nor does the project need to involve more people in a similar way.
"The structure of the financial pyramid exists therefore as long as the sum of money withdrawn by participants is small in relation to the new funds flowing into the system."
In Earth2, our payouts are not dependent on new money flowing into the system.
"Classic financial pyramids can be recognized by the fact that they openly indicate that the only source of profits for participants are contributions from other people."
There is no such thing in a virtual land project.
"The mechanism of their operation, however, is often masked by ostensibly offering investments in specific assets (e.g. real estate, precious metals)."
There are similarities here, but it has already been proven that E2 is not a financial pyramid. In addition to "apparent investments", E2 will soon offer gameplay as well as the possibility of virtual exploring the world in VR technology.
Usually the terms Financial Pyramid and Ponzi Diagram are used interchangeably, but as some try to separate them, I will refer to this supposed difference.
"The Ponzi scheme is that all the money goes to the scammer and he pays a percentage to the lower levels."
In Earth2.io money distributed among all participants. Anyone who has no frozen funds in their parcels can withdraw them at any time. In the future, there will also be a mechanism that will allow you to sell your investments almost immediately. There is also no one "creator of the scam", because a whole team of talented and famous people is working on the project of the second earth. The team is also joined by other people who we meet from their names, photos and profiles on social networks. They also talk about their project on YouTube.
I believe that with my arguments I convinced at least some doubters π
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