According to a new report a majority of al new pyramid schemes in the first quarter in Russia where linked to crypto currencies. Or as they are more popularly known ass Ponzi Schemes, despite there being a difference between the two. Is this a new trend in crypto? Or merely an effect of the current situation Russia is in, due to the sanctions imposed on her? In case you have missed it, Russia decided to invade Ukraine a little over two months ago. And because of that are suffering sanctions imposed on them from EU and the US.

“Schemes based on transfers using cryptocurrencies or investments in ‘digital instruments’ have received another impetus,” Valery Lyakh, director of Bank of Russia’s Department for Combating Unfair Practices

One could very well argue that it might not be as simple as the state of the Russian economy has forced this switch. While the Russian economy surly is suffering. And they still have access to the crypto market. While most Russian banks have due to the sanctions been cut of from the international bank network. Could an simple solution such as they can use crypto to make investments in, and access, foreign currency be the solution? Can this really be the reason behind this switch from Ponzi Schemes mainly being conducted in Ruble, the Russian state currency. To now having switched to be conducted in crypto currencies?

I think there can be more to it then just that. But for sure the current Russian economic situation has to play a part in it. But I think there are other factors to examine as well. The main one I see, and I think most of you also have noticed this. Is that the current trend among crypto projects seem to be based in what they have started to call “Ponzionomics". A merger of the Ponzi from Ponzi Scheme and the word Economics. If this is a new effort to rebrand the old Pyramid- or Ponzi Scheme. Or if it is a serious attempt at making something new. Personally I am in the first camp. If nothing else solely based on the fact that this rebranding have been attempted before. Just look at Multi-level marketing (MLM) or pyramid selling to name a few of the top of my head.

We can clearly see this trend having emerged in the crypto space in recent times. I would argue it started out with the node project and most recently it has warped into the crazy high APY rebase projects. I would therefor argue that this could simply be an attempt at refreshing the old tried and true. Thus being able to trick more people. Playing on the emerging new crypto markets recent gain in popularity the last years.

But let me know what you think? Do you think it is as easy as either or, or do you see something I have missed? Perhaps a third factor that might play a big part as well. Let me know what you think in the comments.

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