The phrase "no loose lottery" should be a red flag right away.
this post was submitted on 04 Aug 2024
23 points (100.0% liked)
No Stupid Questions
35826 readers
1458 users here now
No such thing. Ask away!
!nostupidquestions is a community dedicated to being helpful and answering each others' questions on various topics.
The rules for posting and commenting, besides the rules defined here for lemmy.world, are as follows:
Rules (interactive)
Rule 1- All posts must be legitimate questions. All post titles must include a question.
All posts must be legitimate questions, and all post titles must include a question. Questions that are joke or trolling questions, memes, song lyrics as title, etc. are not allowed here. See Rule 6 for all exceptions.
Rule 2- Your question subject cannot be illegal or NSFW material.
Your question subject cannot be illegal or NSFW material. You will be warned first, banned second.
Rule 3- Do not seek mental, medical and professional help here.
Do not seek mental, medical and professional help here. Breaking this rule will not get you or your post removed, but it will put you at risk, and possibly in danger.
Rule 4- No self promotion or upvote-farming of any kind.
That's it.
Rule 5- No baiting or sealioning or promoting an agenda.
Questions which, instead of being of an innocuous nature, are specifically intended (based on reports and in the opinion of our crack moderation team) to bait users into ideological wars on charged political topics will be removed and the authors warned - or banned - depending on severity.
Rule 6- Regarding META posts and joke questions.
Provided it is about the community itself, you may post non-question posts using the [META] tag on your post title.
On fridays, you are allowed to post meme and troll questions, on the condition that it's in text format only, and conforms with our other rules. These posts MUST include the [NSQ Friday] tag in their title.
If you post a serious question on friday and are looking only for legitimate answers, then please include the [Serious] tag on your post. Irrelevant replies will then be removed by moderators.
Rule 7- You can't intentionally annoy, mock, or harass other members.
If you intentionally annoy, mock, harass, or discriminate against any individual member, you will be removed.
Likewise, if you are a member, sympathiser or a resemblant of a movement that is known to largely hate, mock, discriminate against, and/or want to take lives of a group of people, and you were provably vocal about your hate, then you will be banned on sight.
Rule 8- All comments should try to stay relevant to their parent content.
Rule 9- Reposts from other platforms are not allowed.
Let everyone have their own content.
Rule 10- Majority of bots aren't allowed to participate here.
Credits
Our breathtaking icon was bestowed upon us by @Cevilia!
The greatest banner of all time: by @TheOneWithTheHair!
founded 1 year ago
MODERATORS
Normally, yes, but Yotta looks like a form of "Prize-based savings"
https://en.m.wikipedia.org/wiki/Prize-linked_savings_account
They are "no lose lottery" in the sense that you don't put up money directly to enter, you just open a "savings account". But they pay far less than market rate to fund the payouts. So in a sense, you pay for the entry with reduced returns on your "savings".
So similar to premium bonds? Usually those are government backed though.
Yes, similar to government-backed premium bonds, in the countries where they do stuff like that. But they are not run by the government, so they need to be called something else.
Yeah it’s a big red flag but how did it work?
I can't say for sure but it sounds like a Ponzi scheme. You get some investors. You lie on paper that they're making lots of money. If anybody wants to withdraw, you give them the money from other investors to make it look like anybody can withdraw whenever they want. But there isn't enough to cover all of the withdrawals because you've lied about the profits. Then you get more investors. And more investors. You promise if they keep their money in your investment a long time they will make way more than the initial withdrawers. They were silly to sell when everyone is still making so much money. As long as investors continue to add money to the pool you can pay off the few people who want to withdraw. At some point it becomes untenable to pay everyone off and continue to look legitimate and so you just withdraw all the money and run.
It seems like the big problem with Yotta right now is that it is caught up in the Synapse fallout. These small financial firms advertised that their customers funds were insured, but didn't hold them directly, they held them through intermediaries like Synapse who did have the US FDIC insurance. When Synapse collapsed, all the funds held by Synapse's customers like Yotta got stuck in limbo.
https://www.cnbc.com/2024/07/02/synapse-fintech-fdic-false-promise.html