Quote from: shield132 on Today at 06:24:03 PM

Quote from: jaysabi on Today at 04:38:09 PM

Quote from: freebitco.in PR on July 01, 2021, 01:15:58 PM

FUN Token Listed on Binance Savings - Earn Up To 45% APY!

2. Locked Savings: Tokens are locked in for a fixed period of time. You earn a higher rate of interest with Locked Savings.

With the Locked Savings program, you can earn up to 45% APY on your holdings! Subscriptions to Locked Savings are capped and on a first-come, first-served basis.

Can someone explain this to me like I'm a dummy? How can you possibly earn a guaranteed 45% APY over any period of time? All conventional wisdom says anything like this is a ponzi scheme, so I must be missing something.

Okay, FUN is a token owned by Freebitco.in
Binance is one of the largest and trusted Bitcoin exchange in this world, they also own the coinmarketcap.

You can trade FUN token on Binance and the existence of FUN hasn't started some months ago, it's very old coin. 45% APY on FUN is some kind of promotion that benefits the business and token. It's advertised on Binance, the exchange with the highest traffic and locked funds mean something like this: When there is a high demand on thing X and it's not available, the price on thing X increases. Overall, 45% APY on Binance is both, marketing and locked funds that can synergistically increase the price.

It's just an offer from Binance, they have necessary funds, scam won't happen unless Binance plans to scam its customers. (1) And if you only think about 45% APY, it's not the APY of USD but the FUN token itself that was 0.068 in 4 April and is 0.016 today! If the price goes down from this point more than 45%, then you aren't actually benefiting from your holdings. (2)

Thanks, I was thinking along this line as well. I've footnoted your response so I could take the two points below.

(1) I don't know much about Binance, but Binance scamming is exactly what I'm concerned with. I don't know them to be trustworthy, and there are plenty of operations that present a good game but turn out to be a mess, so I don't give someone the benefit of the doubt just because they talk a good game. I'm wondering what actual security there is, since one of the few things I know about them is they relocate jurisdictions a lot to avoid regulatory oversight. This is a major red flag to me.

(2) Yes, if the coins depreciate more than the interest you earn, you lose more overall. That's a concern on the investor side though. I'm wondering how Binance can afford to to pay such high interest yields on deposits (the denomination doesn't matter, anyone paying interest has to make more than the cost of deposits otherwise they lose money). So from Binance's perspective, if they're paying 45% APY on deposits, they have to earn more than 45% APY equivalent on those deposits otherwise they're just giving money away. So that raises two questions: (a) what are they doing with the deposits that allows them to earn more than 45% APY equivalent to make this profitable for them? If nothing, then (b) if they're losing money on this, this is another huge red flag and suggests it's a scam. Ponzi schemes aren't concerned with having a viable business plan because the business is just incentivize deposits by promising ridiculous returns (like 45% APY) because there's no intention of paying all of it back. So either some investors lose everything because they're the last out of the scam, or everyone loses some when the scam collapses.

So the main concern is if Binance isn't make money by offering this, then everyone who invests in this is at risk (which puts at risk every other Binance depositor too, because insolvency isn't siloed into a particular coin). And if they are making money on this, how? If you can't answer this question, I don't think you should be participating in this offer.

Quote from: arallmuus on Today at 06:25:14 PM

Quote from: delfastTions on Today at 05:47:41 PM

But I also think that 45% is also very suspicious and a large figure, although it may be acceptable for some crypto coins. But many people are accustomed to counting the annual interest on deposits in dollars or national currencies, and of course such large numbers seem to them to be a hoax or a Ponzi scheme.

It seems that you are not reading what I wrote properly. It 45% APY ( approximately per year ) capped at only 14 days saving which means after 14 days, you wont be able to get that deal anymore. Its a one time deal for 14 days with only 1.72% for the whole 14 days, 1.72% is not that big even if you go for the max cap of 100k token

Quote from: jaysabi on Today at 06:24:10 PM

because everything about it screams "red flag."

Maybe voice your concern to binance directly instead of posting in this thread? 1.72% ( 0.123% daily ) for a one time deal of 14 days is not a red flag. Pancakeswap and some other DEX offer around 0.25% daily on average on most their staking feature

The 1.72% over 14 days and 45% annually are the same scaled over different time periods, so it doesn't matter what the duration is. If you can't make a profit offering 45% on deposits for a year, you can't do it over 14 days either, so the question is why intentionally take on a money-losing endeavor? If Binance is a scam, you think you're gonna tell you because you asked them? I'm looking for other thoughtful people who might have information I don't about this. That's why I raised the question here. And it's further relevant in this thread because if FUN is owned by this website as was said in this thread, it's a legitimate question for the owners of the coin, especially if they're touting the return potential without regard for whether or not any of this has been vetted.