company?
I mean how did it work?
It seems like the big problem with Yotta right now is that it is caught up in the Synapse fallout. These small financial firms advertised that their customers funds were insured, but didn’t hold them directly, they held them through intermediaries like Synapse who did have the US FDIC insurance. When Synapse collapsed, all the funds held by Synapse’s customers like Yotta got stuck in limbo.
stsquad@lemmy.ml 4 months ago
The phrase “no loose lotary” should be a red flag right away.
dhork@lemmy.world 4 months 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”.
stsquad@lemmy.ml 4 months ago
So similar to premium bonds? Usually those are government backed though.
andrewta@lemmy.world 4 months ago
Yeah it’s a big red flag but how did it work?