Ponzi Scheme to Hijack Monero
Fake Scam Going Around
There are ponzi scheme claims of Monero Hijacks being circulated.
The attacker is claiming he can lose a massive amount of money, through a complex ponzi scheme, to get control of the network. But the scheme relies upon the attacker’s ability to continue to not only lose money, but also contact miners which he has no means to.
Social Media Scam
The attacker’s money-losing ponzi scheme relies upon free publicity from social media, to persuade the network that Monero miners, (who he can’t contact directly), that they should pledge allegiance to him, in return for his scam coin. Because when his mining pool wins the XMR block, he’ll sell the XMR coins, and buy his self-print scam coin to pay higher rewards.
Continued Losses
The part of the story that is being left out is that in order for his attack to work, he has to CONTINUE to lose money for as long as the ponzi-scheme goes on. His propaganda material acts like it’s a single timeframe event, but after the timeframe of his money loss is done, his ponzi coin goes to $0. As there is no reason to own his coin or pledge allegiance to him unless he continues to pay higher than Monero’s normal block rewards.
Drives his Own Collateral Down
Further, if his attack is successful, it will drive his own coin to zero along with Monero, since the ponzi’s coin only has value if Monero exists.
Tari
Tari was recently released and it’s being merge mined with Monero. This means the XMR hashrate is at an all time high, and the attacker picked the worst time to try this. Further, the SupportXMR pool dwarfs the attacker, and they are setup for Tari merge mine. So the attacker’s calculations are not taking in effect this merge mine bonus, to draw miners away. The attacker is “qubic” here.
Paradox:
The longer it takes the ponzi scheme to continue on, the more money the attacker would have to bleed out. And the closer he would get to driving his own coin to $0 as well. And if the miners sell his coin after receiving it, then the ponzi won’t work. But if they continue to hold it, they believe the ponzi will be successful, and it will go to $0 after on success. Therefore, it is a paradox.
Ignore him
Do not share the attacker’s marketing materials, as this is free publicity, which has attention value. Some mainstream media is covering his ponzi to harm Monero. I say, let him bleed out and ignore him.
