It seems people can’t get enough of transparent pyramid schemes on top of the Ethereum blockchain. Just like any other unique idea involving blockchain and cryptocurrency, it doesn’t take long for multiple clones to come into existence.

Given all of the shenanigans we have seen with PoWHCoin and ShadowFork, it is only normal that people are more hesitant when it comes to these opportunities. That won’t stop EthPyramid from becoming a success, though.

There is something seriously wrong with a lot of people if they think transparent pyramid schemes are a great use case for smart contract technology. While it is true we need to find as many use cases for smart contracts as possible, running a pyramid scheme is not something that will get many positive headlines.

The big difference is that projects such as EthPyramid are completely transparent and warn investors well in advance that they can – and probably will – lose money at some point. In the case of PoWHCoin and ShadowFork, one coding error spelled disaster.

Even though the code was public for everyone to see, it only became apparent there was a major flaw after people had thrown nearly US$1 million worth of Ether into the pyramid scheme. Due to an infinite negative gas price loop, no one was able to withdraw money from this smart contract. Read more from themerkle.com…

thumbnail courtesy of themerkle.com