Ponzi Token is a cryptocurrency built on Base launched on Goat.trading’s DEX. Goat trading is an audited DEX and token launchpad backed by Sushi Labs that started the vision of mitigating the likelihood of Rug Pulls happening by implementing various restrictions on creator wallets during the start up phase of a newly launched token. You can read more about Goat.trading Here and more about the preventative measures Here,

Ponzi Token is playing off this vision in a satirical way with a name that evokes controversy, but a mission that is quite the contrary of the name. Ponzi is essentially making fun of all of the other Memecoins. Memecoins generally offer exactly zero value or utility. They are only worth the cash that backs them. They acquire this cash by becoming popular and getting people to want to join their meme community and purchase tokens. 

Most memecoins aren’t transparent though. Most of them promise amazing gains with no mention of the massive risk that comes with this space. There are amazing gains to be had, but when you have no vision other than making as much money for yourself as possible off of a meme, there is only one ending more often than not, and that is back to zero. Many people have been scammed by the creator of a Memecoin stealing all of their money by selling all of the tokens they have at once when the meme starts dying off, and many more people in the future will have this happen to them as well. Ponzi isn’t necessarily a meme, it is an ideology that will last into the foreseeable future. Ponzi Token is different due to it’s full transparency and documented measures to prevent these things from ever happening to investors.

The creator of Ponzi is one of the people that has been scammed in this space. He lost 27 Ethereum (~$100,000) in a Memecoin called Chedda Token led by a bad actor. Ever since this happened to him, he has had this idea to expose the bad actors in the space and call Memecoins what they are: Ponzi/Pyramid schemes.

Ponzi is a paradox. A Ponzi scheme is a type of investment fraud where the creator lies every step of the way and uses money from new investors to pay existing investors, creating a false impression of profitability while siphoning off as much money as they can. Ponzi Token isn’t a Ponzi Scheme, it’s a Ponzi Meme and is committed to being fully transparent every step of the way. More often than not, Ponzi asks the community for insight before executing a strategy or idea. This isn’t meant to be The Creator’s token, it is meant to be the community’s Token where things won’t be implemented or executed on unless popular, where the community members don’t need to worry about a ton of value being extracted or the rug being pulled from under them, a place where the community can converse about and gain insight on other projects they are looking into.

There is no promise of great returns as this is a highly speculative space, but the one thing Ponzi promises is that The Creator will never scam or dump all of his tokens at once. The team has implemented strategies to ensure the community doesn’t have to just trust The Creator’s word on this. Things such as locking liquidity and gradually vesting excess tokens over time ensures The Creator can never pull the rug out from future investors and the community can feel confident in trading the token without manipulation.

The basis of the token will resonate with hundreds of thousands of people. In 2021 alone, 46,000 people lost over $1,000,000,000 in crypto scams. by the end of 2023, this number was up to $4.5B. The Creator of Ponzi Token anticipates that these numbers will only continue to rise YoY with more and more scammers realizing how easy scamming people in this sector is. Essentially, all they have to do is never mention a promise of not dumping all of their tokens at once, and it is hard to have a solid ground to stand on when bringing litigation against them. 

While this is true, many projects have been charged with various financial crimes, ranging from Fraud, Embezzlement, Unregistered Securities Sales, and Wire Fraud. The Creator is well aware of this and would never do anything to put his good name or the community in jeopardy of litigation. There was no ICO, tokens were offered to the public on Goat.trading DEX. The Creator intends on being reasonably financially responsible with funds meant for the project as well as excess tokens, and the project is built on transparency and honesty; not fraudulent behaviors and narratives such as many other projects.

Many of those who were scammed wanted to be in the space, but have left for good because of all the bad actors, while many are still chasing the dragon in the memecoin sector. Ponzi wants to capture these people and create a community who can look back and laugh about their misfortune in a new community that is mocking the overall memecoin sector and their past naïveté. Ponzi intends on capturing a large market share in the sector hopefully and potentially becoming one of the biggest “memecoins” on Base chain.

Ponzi currently has a total market cap of only $200,000, (many meme coins have a market cap over $1,000,000,000, a 5,000x from here. While unlikely, the same could be said for the tokens that have achieved this. The overall thesis here is that the hundreds of thousands of people who have lost money in this sector will resonate with Ponzi more than a funny dog or frog meme and be more inclined to join this community over those in the future. 

Ponzi has no way of creating any more tokens like many of the scam coins do. For full transparency, you can verify this Here or view the contract on Basescan. The total supply is always decreasing with 2% of tokens sold automatically being “burned” (deleted from existence), making the intrinsic value of existing tokens increase with each trade executed. After just a month of trading, 1% of the supply has been organically burned in this manner.

Ponzi extends beyond the cryptocurrency sector, anyone that participates in the financial markets can relate. To an extent, almost everything is a kind of Ponzi Scheme these days. Investors no longer care as much about P/E ratios, instead liquidity and projected future liquid inflows are prioritized. Companies grow by bringing in more buyers and promising new products in the future that the plan on funding with investors money. While this is not directly Ponzi Scheme, many factors are similar and we believe people all over the world are starting to recognize this.

Ponzi intends to last into the future by being more responsible with its money than other memes, obtaining organic growth, and creating a real community of people who can relate to one another, while also being a perfect meme with the paradox it presents.