network scam
Lana Swartz coined the term “crypto” in her paper.
A scam involves a deal. In a traditional scam, the fraudster tells a falsehood and the victim, with or without diligence believes it, and ends up losing everything. You buy magic beans but they do not grow.
Modern scams are based on a network. There are either conditions where scams are more likely to happen (because media and other forces offer a magnifying effect to the scammer), or the buyer is gullible and has a suspicion that it’s a Ponzi Scheme, but still plays along, thinking he will be able to pass the buck on to the next victim and make money.
A network scam is committed by someone who buys an NFT believing it will go up without considering its actual utility. It wouldn’t work without a group of people who share the same beliefs.
Maybe climate denial is a network scam. You can only pump oil, sell disposable clothing or profit from cheap beef because others share your short-term view of the world. The delusion will fade sooner or later, probably sooner. We (we all) will be left with the bill.
In a rational and well-lit world, we would be able to see the network scams as they really are and take action before they spiral out.
Swartz quotes an hustler saying, “If it’s Ponzi, you should get in early.”
PS Black Thursday is an internet scam.
