BSN chair believes Bitcoin is Ponzi and stablecoins would be fine once regulated

One significant local blockchain specialist from China has referred to cryptocurrencies like Bitcoin as a “Ponzi scheme” amid the Chinese government’s ongoing celebration of the sharp collapse of crypto markets this year.

The Blockchain Service Network (BSN), China’s largest blockchain project, is being developed by Red Date Technology, whose CEO, Yifan He, has written a new article against numerous crypto token and their alleged Ponzi-like nature. It appeared in the local daily The People’s Daily, on June 26, calling private cryptocurrencies the “biggest Ponzi scheme in human history.”

He mentioned the recent LUNA/UST disaster where the native token LUNA crashed and the algorithmic stablecoin UST lost a 1:1 peg to the United States dollar in May, as TheCoinRise reported. He criticized the X-to-earn model popular in the crypto world, calling the play-to-earn model a “phishing strategy.”

Yifan He: Unregulated crypto like Bitcoin is Ponzi

The article also mentioned some popular Bitcoin critics like legendary investor Warren Buffett and Microsoft founder Bill Gates. Yifan He is not a Bitcoin fan or any similar cryptocurrencies. He stated that all unregulated cryptocurrencies, including Bitcoin, are Ponzi schemes. According to him, they just have different risk levels based on the market caps and user count. The BSN added:

“I don’t touch them [cryptocurrencies] and won’t touch them in the future even if they become regulated because I don’t consider that they have any value whatsoever.”

He still thinks that some parts of the cryptocurrency industry might be doing just fine if it’s properly controlled, despite his criticism of Bitcoin and many other crypto ventures. According to him, USD Coin (USDC) and Tether (USDT), two cash-backed stablecoins, are not comparable to Ponzi schemes.

Notably, the BSN Chair previously took sides of stablecoins in 2020. Moreover, in 2021, he planned to integrate stablecoin payments into BSN. However, the plan couldn’t come into reality due to China’s massive crackdown on the digital currency space.