Chairman of BSN China: Bitcoin is Ponzi, Stablecoins are Fine if Regulated
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The Blockchain Service Network (BSN), China's largest blockchain project, was developed by Red Date Technology, whose CEO, Yifan He, has written a new article against numerous cryptocurrencies and their purported Ponzi-like scheme. The article, written on June 26 and in the local People's Daily, calls private cryptocurrencies the "largest Ponzi scheme in human history."
Native Token LUNA Crash
The native token LUNA crashed by 99%, and the algorithmic UST stablecoin lost its 1:1 peg value to the US dollar in May 2022, as mentioned by the author. Additionally, he called the Move-to-Earn or Play-to-Earn initiatives, also known as "X-to-Earn" projects, a "phishing approach" and questioned the concept of virtual currency becoming increasingly popular. The BSN chairman also cited some well-known criticisms of Bitcoin (BTC) from Microsoft co-founder Bill Gates and renowned investor Warren Buffett.
He is not a fan of Bitcoin or any similar cryptocurrencies.
"Currently, all unregulated cryptocurrencies, including Bitcoin, are Ponzi schemes based on my understanding, just different risk levels based on the market caps and number of users,"
Ongoing Crypto Market Crash
The news comes amid the government of China using the current crypto market fall to support several industry-related bans. In September 2021, many Chinese agencies took moves to enforce the latest coordinated ban, outlawing all types of cryptocurrency transactions in the nation. Despite all attempts, China remained the world's leading provider of Bitcoin mining equipment. As of January 2022, China was the second-largest producer of BTC mining hash rates after the United States, according to statistics from the Cambridge Bitcoin Electricity Consumption Index.