It is structurally more like a ponzi than a pyramid.
By large crypto has no MLM style referral system where the product is the business opportunity to sell the product.
However it does have a feature where crypto gains are only funded by newer people coming in and buying at a higher price. But no cashflows are produced other than selling the investment tokens. This is almost identical to a ponzi except it has decentralisation that makes it probably legally not a ponzi.
Imagine I did an IPO of a company I incorporated last night but hid behind a panama shell. That’s crypto.
> However it does have a feature where crypto gains are only funded by newer people coming in and buying at a higher price.
"only" is inaccurate. This was true early on before there were markets and contracts. Now we have DeFi which allows for gains on trades by anyone who wants to provide liquidity. Similar to any sort of commodity market where people buy and sell what they own (or even don't own with margin and options).
By large crypto has no MLM style referral system where the product is the business opportunity to sell the product.
However it does have a feature where crypto gains are only funded by newer people coming in and buying at a higher price. But no cashflows are produced other than selling the investment tokens. This is almost identical to a ponzi except it has decentralisation that makes it probably legally not a ponzi.
Imagine I did an IPO of a company I incorporated last night but hid behind a panama shell. That’s crypto.