Yield farming is something you would do in the World of Warcraft, but it’s 2022 and the world has changed. magical internet money is here ladies and gentlemen, and yield farming is a crypto thing , so get ready to learn about what it actually means. Hang on, let me look it up in a flash, ah it is indeed the act of lending or staking crypto assets to earn high returns or
Rewards can be in the form additional cryptocurrency Are you still in a state of confusion? that’s the main reason for this article. Sam bankman who was freed ceo of one of the world’s biggest crypto exchanges has appeared on an audio show to explain to the general public to clarify for the first time what is a yield farming but that he mistakenly mentions a ponzi scheme that can be described as hilarious because it’s his only job in these situations is to
This talk with non-crypto folks is to assure them that it’s not a scam, but instead, right from the gate, the guy says we just keep investing money into this scheme and the price is going up as a disclaimer that not every yield farming scheme is a ponzi scheme . People have always been lending money and it’s technically yield farming, but it’s isn’t a Ponzi Scheme at present but the question is, what exactly is does this billionaire think?
Crypto ceo is set to say that it is an ponzi scheme, so let’s look it up an astonishing amount of credibility regarding what farming might mean. you’re wondering where to begin with a business who constructs a box. it is used in the real world. They will likely make it appear like a life-changing, you know , a world-changing protocol that will completely replace the banks of the world in just 38 days, or what may be.
At this point, you should either do nothing about it or pretend that it’s actually doing nothing, it’s simply a boss, all right? first step we’re already seeing warning signs here. Pretend that you’re a life changer and actually don’t do anything. Step two? sam. Then this protocol will issue the token we’ll call it whatever x token . The the token assures that whatever awesome that happens as a result of this box will be a success.
In the end, you will be able to use it by a the governance vote of the holders of the tokens. They can decide the best way to use any profits or other exciting events that occur from this box. Of course, we’ve never really provided an argument that is convincing to justify what would happen to any profits from this box, but I do not know for sure if there will be, so this is where you begin. Now, how will it go? Well the token you’re looking at has a certain market capitalization right?
It’s probably not zero, but we’ll say it’s 20 million dollars in market value Okay, step two is to create 20 million dollars market cap out of nothing, not a big deal, it’s crypto . The interviewer, this matt levine is able to grasp the absurdity of it all. He’s similar to the serious investment banker that you need to imagine, and you’re like, no it’s not worth anything it’s impossible and Sam Bankman Freed’s and i’m sure i’m not able to come up with a similar idea.
The first principle is that it should be zero but uh I’m sure i’m making a completely sensible comment, as if that’s the case, but the way you describe it this cynical manner you’re describing it as if it’s supposed to be here , but to describe it in this manner you might imagine that in a matter of five minutes using an internet connection, you could build a such a box or the token that goes with it and it
If it’s reflective like you think it’s worth one hundred and eighty dollars or something like that. similar to that, you know the amount of effort you invest in it is worth it is worth the place we live in, if you do this , everyone will look at you like, oh box token, maybe it’s cool to buy a box token, you’re sure it’s likely to show up on twitter and I’ll be able to have a 20 million dollar market cap in no time. Red flag 3. My friend just mentioned that there’s a possibility that in your world, it’s a box that doesn’t do anything
It’s not worth 20 million but in my view there is a minimum of 20 million and this is the point where everything goes full ponzi. We do not even bother to conceal it . The amount of money increases since more money is coming into and more money is coming in since the amount of money is increasing, and you’ll see that x tokens are distributed every day by these sophisticated companies like it’s fascinating, for instance when the total amount of money inside that box was 100
Million dollars, then it’s going to generate 16 million dollars in the form of x tokens that are distributed in exchange for it. That’s a 16. yield that’s quite good. We’ll include a bit more right it could be until there’s two hundred million dollars inside the container, so you can see sophisticated traders those on crypto twitter or similar platforms go ahead and place 200 million dollars into the box together.
They start receiving the x-tokens which is why all of a sudden , everyone’s amazed that people have decided to place 200 million dollars in the box. This is an awesome box as this? This is an impressive box as evidenced by all the money has been decided by the people to be put in the box, and it’s not a stretch to say they’re not wron