"Limited run" of 10,000 bored apes. Bored ape worth 300k. Irreversible typo in sale price costs owner hundreds of thousands of dollars. Buyer pays 32k in transaction fees. At bottom the NFTs are a silly ponzi scheme anyway.
I would not at all be surprised if this was a scam to try and move the ape at 250k, but I have no idea how liquid these things are.
Bored Apes are super liquid. If you list one below "floor price", it will probably sell within minutes. Just today, someone had theirs stolen in a phishing attack. The attacker listed it with a gradually lower price and it was gone in under an hour for I think ~45 ETH at about 2 ETH below floor price.
I hear this alot and do not understand it. How is it a ponzi scheme? there is no fraud taking place, people are aware they are buying a token for 300k and taking on that risk themselves. If they lose money there is no one to charge as no fraud has taken place.
How is it a Ponzi scheme? Or why do people call it that?
People use the term loosely to refer to a situation where money has been put into a system, and nothing productive has been done with it, such that taking your money out as soon as possible is probably prudent, before the market decides it's worth zero because the supply of greater fools is used up.
You buy a NFT at the ground floor. You know it's worthless, but you also know about hype. You go on Twitter, tell your friends about NFTs, shout about them from the rooftops. The price goes up, you sell before the reality distortion field collapses.
The early investors are paid by the newest ones. Ponzi scheme is a good word for it even if it doesn't fit perfectly. The moving of bits around on the blockchain is just misdirection. A decentralized ponzi scheme promoted by many unrelated actors simultaneously.
If it's greater fool plus no inherent value of the underlying then that's a Ponzi Scheme. You aren't buying anything, no revenue stream, no dividends, no assets, no cash, etc, just the hope you can sell to a greater fool. A Ponzi Scheme is the same thing - you can make money if and only if suckers keep putting money into the scheme (and you cash out at the right time).
Ponzi works like this: Say this big shot investor invites you into his fund that gives a great return of 16% compounded year over year. The investor encourages his investor to put in regular amounts over time. He's got a fancy website that tracks your account balance which of course is only a ledger he owns. No financial institution seems to carry any money. It is a confidence scam. As long as you are confident that your money is being increased regularly and you are waiting long into the future to take it out it is never discovered that the Ponzi scammer is stealing all the money and living an extravagant lifestyle.
What is the point of an NFT if you can just copy the artwork and use for free!?!? A painting you know its the original piece and can never be replicated in the same manner....but this is 1s and 0s....exact copies are perfectly identical..
Wait until you learn that an NFT doesn't even contain the 1s and 0s. It contains a URL to the 1s and 0s that are stored on someones server, and can be taken down at any time.
> It contains a URL to the 1s and 0s that are stored on someones server, and can be taken down at any time.
I don't think that's true. It contains an address that some centralized database says points to an image on someone's server. I don't think the URL or reference to the image sits anywhere on the blockchain, maybe some characteristics like the name. But I think its just a pointer to nothing.
Is there any blockchain project that is effective at storing actual data, like a distributed file system?
Yes, Filecoin is the big one. The URI stored on the Ethereum Blockchain for an NFT is almost always an IPFS URI. IPFS is the cache layer on top of Filecoin.
Many NFT projects store all the image data on Arweave[1], which stores it permanently on a blockchain built for this purpose. Unfortunately, you won't hear about the tech on Hacker News — just cynical takes.
I didn't understand either until a friend of mine who makes these explained this to me:
NFTs are being used more for social status signaling and as passes to exclusive clubs/parties. For example some celebrities are buying them to signal their eliteness. So their value is not in the art itself, but to convey to others your rank in the pecking order. Think of it like a digital Gucci bag.
Besides that, mostly just speculation and money laundering.
Owning a Bored Ape gets you access to the club. It's not just about owning a picture, though people with a hard on for hating them love to describe it as such.
33 comments
[ 1.8 ms ] story [ 76.2 ms ] thread"Limited run" of 10,000 bored apes. Bored ape worth 300k. Irreversible typo in sale price costs owner hundreds of thousands of dollars. Buyer pays 32k in transaction fees. At bottom the NFTs are a silly ponzi scheme anyway.
I would not at all be surprised if this was a scam to try and move the ape at 250k, but I have no idea how liquid these things are.
People use the term loosely to refer to a situation where money has been put into a system, and nothing productive has been done with it, such that taking your money out as soon as possible is probably prudent, before the market decides it's worth zero because the supply of greater fools is used up.
The early investors are paid by the newest ones. Ponzi scheme is a good word for it even if it doesn't fit perfectly. The moving of bits around on the blockchain is just misdirection. A decentralized ponzi scheme promoted by many unrelated actors simultaneously.
https://news.ycombinator.com/item?id=29541836
I don't think that's true. It contains an address that some centralized database says points to an image on someone's server. I don't think the URL or reference to the image sits anywhere on the blockchain, maybe some characteristics like the name. But I think its just a pointer to nothing.
Is there any blockchain project that is effective at storing actual data, like a distributed file system?
https://docs.filecoin.io/about-filecoin/ipfs-and-filecoin/
"The data exists in the network as long as one user is storing it and can provide it to others when they request it"
https://xkcd.com/908/
[1]: https://www.arweave.org/
They're just crypto-assets. Full stop.
NFTs are being used more for social status signaling and as passes to exclusive clubs/parties. For example some celebrities are buying them to signal their eliteness. So their value is not in the art itself, but to convey to others your rank in the pecking order. Think of it like a digital Gucci bag.
Besides that, mostly just speculation and money laundering.
Let me list several. You are in it. Others are not. Tea at noon. Parking up front.
There! We have 4 GREAT reasons!
/s
https://www.sfgate.com/entertainment/article/Thomas-Kinkade-...