PoWH 3D - Power of Weak Hands


#1

cheers() all!

Let’s discuss this controversial new coin.
Is it a ponzi scheme? Is it a pyramid scheme?


#2

Hahaha, looking at Ivan’s “good morning crypto” of today we can be fairly certain of his opinion :smile:

On a slightly more serious note, is it a ponzy scheme? No doubt about it, looking at their website the Steemit write ups, and other channels they’re not really hiding this:

  • They claim they’ve built this on top of an existing ponzi scheme.
  • There is zero information on their website in terms of who they are
  • There is virtually no information on how it works on their website
  • The FAQ has exactly one question in it.
  • No whitepaper, no documentation
  • They tell you to HODL and you’ll get rewarded, the longer you HODL the bigger the reward
  • They specifically state that they’ve used the old code and removed the bugs but that the idea of the Ponzi scheme was solid and has been maintained
  • Etc., etc. etc.

You get paid by having at least 5 tokens, which then allow you to become a master node, which then earns you 33% of all transaction fees by users you referred, etc. (really no need to read beyond this point).

Obviously this will work for early adopters (just like Bitconnect, Davor, etc.) but in the long run people will once again blindly part with their money, and they can’t say they haven’t been warned this time.

It is screaming to everyone that wants to read it that it is a pyramid scheme and a ponzi scheme … and then there were a bunch of people in Ivan’s chat screaming … but you didn’t look at the code!!!

Looking doesn’t make it any less a scheme.


#3

Pow3d beginner’s guide: https://powh3d.hostedwiki.co/pages/Beginner’s%20Guide%20to%20POWH3D


#4

Thanks Bruce, that is a lot more informative than their shitty website. Let me have a read through and see if it changes my opinion a bit :slight_smile:

I do still cringe at the fact that people like Craig Grant shilling it, that in itself is a deal breaker for me.


#5

Still really on the fence with this one (I was until I started writing this post and explaining to myself how it works, no longer on the fence now):

Pros:

  • The model makes sense, kind off(?) and in principle could work.
  • The beginners guide explains it well
  • Pay-out in ETH, not sure about withdrawal speed (?)

Cons:

  • Being shilled by Criag Grant, red flag number one, “Juge” red flag even.
  • Having to buy the P3D token, in exchange for ETH
  • It is based on a ponzi scheme (by their own admission)
  • Pay-out in ETH, not sure about withdrawal speed (?)
  • The website screams Ponzi
  • One of the sponsor addresses is called Ponzi
  • It is a pyramid scheme

You are giving them ETH and for that they make new coins (since the volume of coins fluctuates with buy and sell) and you pay 10% transaction fee (which is pretty steep) on every transaction you conduct on the smart contract. I.e. if you put in 5,000 USD (about 13ETH) you will immediately lose 500 USD on purchase of the P3D and you will lose this again on the sale of your P3D, so effectively by giving them 5,000 USD you are paying them 1,000 USD of your money and then hoping to make this back in payments from others doing the same.

I.e. a lot of people have to participate for you to earn that 20% cost back, and since that 20% cost is distributed to everyone that holds P3D every transaction will only earn you a little bit.

Add to that that the higher your stake in P3D is, the higher % of that cost earnings you receive and there you go, you get a pyramid. The ones at the bottom with low holdings, will not be able to recuperate since the ones with high holdings will constantly earn more ETH, can reinvest this to increase their P3D holdings and effectively rise to the top of the pyramid.

Even if they rotate positions at the top, in the end someone will always lose their money, as this is the only way they can pay for interest.

Also reinvesting will again cost you 10% (since you are exchanging ETH > P3D > ETH which costs 10% tax) so assume you manage to earn back your original tax, then you are taxed on that if you reinvest.

On top of this, they are artificially inflating the value of the P3D with every ETH purchase. And it will equally crash badly if someone decides to offload which can send the price into an immediate spiral.

The statement: 0.05%-2% daily earnings is what pushes it over the edge, there is nothing to substantiate that statement (I’m sure those at the top may earn close to that but such was also true for BitConnect and Davor (Hey hey heeeeeeyyyyyyy).

So, conclusion:

  • Their website is a piece of garbage
  • Their proposition is a pure pyramid scheme
  • It may not be ponzi as I didn’t immediately see referral rewards but it matters little.
  • Small fish are going to lose out, substantially once again.

My advice, do not invest, there is no such thing as a get rich quick scheme, someone always has to pay for the others to get rich. An an investment that takes 20% up front isn’t sound; it is hard enough to earn 20% on top of your money in any market, giving that away is just silly.


#6

Who is making the market on this?

It appears the only “exchange” is the one run by the developers. Am I missing something here? If the official set buy/sell price of P3D is going “up” on what basis is this happening other than sheer manipulation? All natural price action charts display zigzag volatility fluctuations regardless of trend, not a smooth ramp. Apparently not this one.

Who controls all the ETH already paid in? And what happens if they decide at some point to stop redeeming transfers out back to ETH? Wouldn’t that convert ALL participants into “bag holders,” which just happens to be the moniker of one of the defined functions in the smart contract?


#7

It is a pyramid scheme, so yes, they control the exchange, they manipulate the price and value of the token and yes they can turn everyone into bag holders.

This is nothing more or less than a scam, and they’re quite open about it.


#8

I’ve done some deeper digging this weekend and summarised it all here (including points from this discussion):