The shame is the consumer putting savings into a space bank lottery scheme instead of t-bills or whatever. If Yotta passed the sniff test of being a real bank, people are less likely to shame the people who lost their savings.
Yotta claimed to be functionally equivalent to having a normal interest-bearing account with an excellent interest rate, and using a small portion of the interest to buy some lottery tickets. Buying lottery tickets might be dumb, perhaps even shameful (although I disagree as long as it’s not to excess), but it by no means implies that you deserve to lose your savings.
Yotta’s funds were backed by the US government. The trouble is that the link between Yotta’s funds and Yotta’s customers’ funds was somewhat more tenuous than they implied.
Is a space bank lottery really worse than t-bills?
Like is the average utility gained from a depositor from their $1000 turning into $1001 for 1000 depositors greater than the utility gained from a single depositor turning $1000 into $2000 while the other 999 depositors utility remains flat?
