[nightski]

So anything with inflation is considered a ponzi scheme in your eyes?

Just want to mention that I in no way support algorithmic stable coins, I think they are a joke (including luna/terra). But I also don't agree crypto currencies are generally a ponzi scheme (there may be a few exceptions).

[johntb86]

It's the impossible trilemma - you can't have

* a fixed foreign exchange rate

* free capital movement (absence of capital controls)

* an independent monetary policy

As a stablecoin, they claimed to have

* A fixed exchange rate with the dollar

* Generally free movement in and out (except for the 21-day redemption period, etc.)

* an interest rate untethered to risk-free rates you could get on USD

so it was impossible for it to work.

[hristov]

I am not talking about crypto in general but the ancor protocol in particular. The ancor protocol provided 19.5 % yield without having any asset that actually produces that kind of income. It provided the yield from new investments coming in, which is the definition of a ponzi scheme.