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  • JPMorgan CEO calls Bitcoin a ‘Ponzi Scheme’ despite JPMorgan’s involvement in Bitcoin ETFs

    JPMorgan CEO calls Bitcoin a ‘Ponzi Scheme’ despite JPMorgan’s involvement in Bitcoin ETFs

    • Jamie Dimon, JPMorgan CEO, called Bitcoin a “Ponzi scheme.”
    • Dimon’s criticism comes despite JPMorgan’s involvement in Bitcoin ETFs.
    • Bitcoin’s recent price volatility highlights ongoing debates in the cryptocurrency market.

    JPMorgan Chase CEO Jamie Dimon has once again voiced his scepticism towards Bitcoin (BTC), dubbing it a ‘Ponzi scheme’ during an interview on Bloomberg TV.

    During his interview, Dimon reiterated his long-standing criticism of Bitcoin, stating that it lacks utility and legitimacy as a form of money. He described Bitcoin and similar cryptocurrencies as “simply not functional as currencies,” emphasising his belief that they are essentially Ponzi schemes disguised as technological innovation.

    However, this is not the first time that the CEO is criticizing Bitocin. His scepticism towards Bitcoin is well-documented. He previously called Bitcoin a “fraud” and expressed concerns about its potential to facilitate illegal activities such as money laundering, fraud, and tax evasion due to its anonymity and lack of regulation.

    JPMorgan’s involvement in Bitcoin ETFs

    It’s notable that despite Dimon’s vocal criticism of Bitcoin, JPMorgan has been actively involved in the cryptocurrency space.

    The banking giant has served as an Authorized Participant for BlackRock’s spot Bitcoin exchange-traded fund (ETF) and has participated in several blockchain-based projects over the years.

    Furthermore, despite Dimon’s scepticism towards Bitcoin, the CEO acknowledged the potential value of certain aspects of blockchain technology, particularly those facilitating smart contracts although  he maintained his stance that cryptocurrencies like Bitcoin lack inherent value as currencies, echoing his previous sentiments on the matter.

    This juxtaposition highlights the nuanced approach within the banking giant towards cryptocurrency investments, even as its CEO expresses scepticism.

    Bitcoin (BTC) price market reaction

    Bitcoin’s market performance has been subject to fluctuations in recent times. At the time of writing, Bitcoin price was $64,741.28, after experiencing a 4.92% increase in the last day, but it was still down 8.41% over the past seven days.

    Despite these fluctuations, Bitcoin’s market capitalization has recently surpassed $1.2 trillion, reflecting its continued growth and acceptance as an asset class.

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  • Blast founder denies Ponzi scheme claims as TVL rockets past $400 million

    Blast founder denies Ponzi scheme claims as TVL rockets past $400 million

    • Blast was supported by a $20Ms investment from notable backers like Paradigm and Standard Crypto at launch.
    • Blast is facing Ponzi scheme claims.
    • Roquerre clarifies that Blast’s 4 to 5% yield comes from reputable platforms like Lido and MakerDAO.

    In a recent twist of events, Blast has faced scrutiny and Ponzi scheme claims. However, the founder, Tieshun Roquerre, has vehemently denied these allegations.

    Despite ongoing debates, the recently launched Blast platform has achieved a significant milestone with a Total Value Locked (TVL) exceeding $400 million, emphasizing the platform’s rapid growth and unique features, including ‘Blast Points’ for community engagement and an innovative approach to Layer 2 (L2) native yield generation.

    As the platform gains attention with a Total Value Locked (TVL) surpassing $400 million, Roquerre has sought to clarify misconceptions surrounding Blast’s innovative approach to yield generation and community engagement.

    What is Blast?

    Launched in an invite-only early access mode, the Blast platform has quickly garnered attention, raising $20 million from investors including Paradigm and Standard Crypto.

    With a TVL exceeding $400 million, the platform’s unique features, such as ‘Blast Points’ for community engagement, have contributed to its rapid growth. The TVL milestone reflects confidence from investors and users alike, despite ongoing debates about the platform’s viability and security.

    Blast positions itself as the first Layer 2 (L2) with native yield. Promising an EVM-compatible optimistic rollup, the platform allows users to earn yield on stablecoins. By bridging assets like USDC, USDT, and DAI to Blast, users participate in on-chain T-Bill protocols like MakerDAO, receiving yields in Blast’s auto-rebasing stablecoin, USDB.

    Despite concerns about a lockup period and the L2’s yet-to-be-launched status, Roquerre envisions Blast’s potential impact on reducing transaction costs and enhancing institutional-grade NFT perps.

    Addressing Blast’s Ponzi scheme claims

    Tieshun Roquerre, the founder of Blast, has responded to allegations labelling the platform as a Ponzi scheme.

    Roquerre strongly refutes these claims, emphasizing that Blast’s 4 to 5% yield is sourced from reputable platforms like Lido and MakerDAO. He points out that these yields are a result of Ethereum’s staking rewards and on-chain T-Bills, positioning them as sustainable components within the crypto economy. Roquerre’s commitment to transparency aims to dispel misconceptions surrounding Blast’s financial model.

    As Blast navigates its early stages, the cryptocurrency community remains vigilant, observing the platform’s progress and assessing its potential impact on the evolving landscape of crypto finance.

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  • Actor Ben McKenzie says crypto is like a ‘Ponzi scheme’

    Actor Ben McKenzie says crypto is like a ‘Ponzi scheme’

    actor ben mckenzie crypto is like ponzi scheme
    • McKenzie says cryptocurrencies resemble an MLM scheme.
    • He calls for the need to better regulate and license this market.
    • Bitcoin is currently up a whopping 80% versus the start of 2023.

    An 80% year-to-date rally in Bitcoin is not enough to substantiate the legitimacy of cryptocurrencies for actor Ben McKenzie.

    McKenzie dubs crypto an MLM scheme

    McKenzie does not see cryptocurrencies as financial assets per se.

    He views them more as a “story” that can be pushed out of existence if people stopped believing in them. On CNBC’s “Squawk Box”, the actor who played James Gordon in “Gotham” said:

    Crypto resembles a Ponzi scheme or multi-level marketing scheme. In MLMs, 99% of people lose and 1.0% benefit. In crypto, it’d be exchange owners, VC firms, people that issue the coins.

    Still, the U.S. Securities & Exchange Commission has recently received several applications including from BlackRock Inc for a Spot Bitcoin ETF that signal institutional interest in BTC.

    McKenzie says regulation will help

    Last month, the regulator sued both Binance and Coinbase Global Inc for violating U.S. securities laws.

    According to Ben McKenzie, greater regulation and more sophisticated licensing could indeed help turn crypto into a proper financial market.

    You’re talking about an unregulated, unlicensed market run through shell corps in Caribbean. Crypto has benefitted from gray area between how we classify securities and commodities.

    The veteran actor is even more bearish on cryptocurrencies other than Bitcoin as the latter is at least limited in terms of supply. Also on Tuesday, Professor Carol Alexander of Sussex University said BTC could hit $50,000 by the end of 2023.

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