Ethereum ‘smart Ponzis’ attracting millions in investment » Brave New Coin

These two new ‘parody’ apps—PoWH 3D and FOMO 3D—make a mockery of the crypto ecosystem by transparently letting early investors directly benefit from the funds of later investors. PoWH 3D, is a decentralized exchange, with its own unique ethereum-bonded token, and FOMO 3D is a gambling game designed to simulate “all the excitement of an ICO exit scam.”

By writing the rules into a mechanism of open source smart contracts, the new apps need no ploys to prey on the ever-present human tendency for greed. They have already garnered unprecedented appeal, blowing CryptoKitties off the blockchain with almost 4,300 ether ($2 million) of collective trading volume over the last 24 hours—a figure that puts them in competition with the most popular decentralized exchanges.

Developer origins

The four anonymous collaborators behind the project—“Team Just”—say that they have never met in real life. But despite having never heard each others voices, have managed to build a…