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arXiv:1703.03779cs.CR

Dissecting Ponzi schemes on Ethereum: identification, analysis, and impact

Massimo Bartoletti, Salvatore Carta, Tiziana Cimoli, Roberto Saia

Abstract

Ponzi schemes are financial frauds which lure users under the promise of high profits. Actually, users are repaid only with the investments of new users joining the scheme: consequently, a Ponzi scheme implodes soon after users stop joining it. Originated in the offline world 150 years ago, Ponzi schemes have since then migrated to the digital world, approaching first the Web, and more recently hanging over cryptocurrencies like Bitcoin. Smart contract platforms like Ethereum have provided a new opportunity for scammers, who have now the possibility of creating "trustworthy" frauds that still make users lose money, but at least are guaranteed to execute "correctly". We present a comprehensive survey of Ponzi schemes on Ethereum, analysing their behaviour and their impact from various viewpoints.

arXiv comments
Journal reference
Future Gener. Comput. Syst. 102: 259-277 (2020)
DOI
doi:10.1016/J.FUTURE.2019.08.014
Subjects
cs.CRCryptography and Security

On Hacker News

Linked by 3 identifiable commenters in 3 comments across 3 threads, from Jun 2017 to Oct 2017. Found in 1 HN submission from Jun 2017 to Jun 2017. Open submission discussions.

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Discussed in comments3 threads

  1. The Transaction Costs of Tokenizing Everything 1 comment

    • I just realized, I'm severely confused about what Filecoin is, and possibly ICOs in general. I assumed "ICO" was analogous to IPO. If a token is essentially a bearer share that is coupled to the payment system. No reason you couldn't create the coin, run it privately until you…

      elevensiesView on HNParent context

  2. Ethereum Scam Database 1 comment

    • So far it's basically a listing of scam sites trying to masquerade myetherwallet.com. It's like 20 pages deep for just for that. I was thinking it would be something more akin to: https://arxiv.org/pdf/1703.03779.pdf

      bayonetzView on HNParent context

  3. Attempt to Reverse a $55 Million Ether Heist 1 comment

    • You are categorically wrong about this. Ponzi schemes are financial frauds where, under the promise of high profits, users put their money, recovering their investment and interests only if enough users after them continue to invest money. Further to this, its qualatively…

      AJRFView on HNParent context

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