Comment on What exactly was Yotta doing with people's money? Right now they are basically a gambling platform. But from my understanding they were a no lose lottery. But exactly what was going on in that compan

stsquad@lemmy.ml ⁨1⁩ ⁨month⁩ ago

• dhork@lemmy.world ⁨1⁩ ⁨month⁩ ago

  Normally, yes, but Yotta looks like a form of “Prize-based savings”

  …m.wikipedia.org/…/Prize-linked_savings_account

  They are “no lose lottery” in the sense that you don’t put up money directly to enter, you just open a “savings account”. But they pay far less than market rate to fund the payouts. So in a sense, you pay for the entry with reduced returns on your “savings”.

  source

  • stsquad@lemmy.ml ⁨1⁩ ⁨month⁩ ago

    So similar to premium bonds? Usually those are government backed though.

    source

    • dhork@lemmy.world ⁨1⁩ ⁨month⁩ ago

      Yes, similar to government-backed premium bonds, in the countries where they do stuff like that. But they are not run by the government, so they need to be called something else.

      source
• andrewta@lemmy.world ⁨1⁩ ⁨month⁩ ago

  Yeah it’s a big red flag but how did it work?

  source