Founder of China's BSN Slams Crypto, Calls It A Ponzi Scheme

The founder and CEO of China's Blockchain-based Service Network (BSN), Yifan He, believes that the crypto industry is a Ponzi scheme.

In the article published in state-back People's Daily, He discussed the manipulation of price of the largest meme coin by market capitalization, Dogecoin (DOGE), by Tesla CEO Elon Musk via his official Twitter handle. He added that the crypto market is an “old scam, new form.”

He also discussed the recent crash of the Terra USD or UST stablecoin and LUNA, which wiped out more than $40 billion from the crypto market. He explained that these blockchain-based tokens fell into a combination of two types of Ponzi schemes – cash-based and equity-based.

Interestingly, Yifan He is also the CEO of Red Date Technology, which plays a key role in building China’s blockchain infrastructure. His statements come at a time when the crypto market is in a bear grip and as per Alternative.me, the Fear and Greed Index reads extreme fear.

In the report, He also gave the examples of Microsoft-founder Bill Gates and veteran investor Warren Buffett saying that they will not participate in the crypto industry and purchase Bitcoin. However, they did acknowledge that blockchain is a promising technology.