Steemit Criticized For Ponzi Scheme-Like Network

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Steemit Criticized for Ponzi-Scheme Style NetworkSteemit, the so-called ‘incentivized social media platform’ has been criticized for various obvious reasons. Some experts are concerned with the technical side of the platform and are suspicious of the financial ponzi-scheme like nature of the network.

One of these experts is Daniel Imbellino, an information technology specialist and the co-founder of Strategic Social Networking, who first approached Steemit and its cryptocurrency STEEM with extra precaution. He simply believed it was too good to be true. Writers of blog posts were getting paid out a range of $1,000 to $7,000 depending on the popularity. As a result, the Steemit platform paid nearly $1.3 million to users on July 4.

Two Major Financial Issues

There are two major issues with the payout system of Steemit. The first is the revenue source; where is Steemit receiving money to incentivize users millions of dollars? According to Imbellino, no one in the company seems to know. The CEO of Steemit, Ned Scott, cited a super angel investor that has funded the platform.

However, an investor, which is described as ‘someone who provides, or invests, money or resources for an enterprise, such as a corporation, with

Read more ... source: TheBitcoinNews

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