TEXITcoin:  An Honest Ponzi?

The phrase “an honest Ponzi” is an oxymoron—a contradiction in terms. A Ponzi scheme is inherently a fraud, a lie.

Let me briefly share the story of how I first heard this phrase.

I was speaking with an older businessman from Las Vegas. He asked me about TEXITcoin, and I explained what it was.

He paused, then said, “I hope you won’t be offended, but I’ve got to ask—this TEXITcoin thing, is it like a Ponzi scheme?” He said it quietly, as if hoping I’d admit to it.

I’ve learned to be diplomatic when I disagree, so I responded carefully:

“That’s a very good question, and I’ve looked into it myself so I can better explain to others who might wonder the same thing. Let’s examine what a Ponzi scheme really is and see how it differs.”

I then explained:
“Bernie Madoff ran a Ponzi scheme. He took investors’ money, promised them liquid accounts with around 10% annual returns, but in reality, he never made any investments. He claimed to be earning profits through arbitrage, but no one knew exactly how he was generating those returns. Eventually, Ponzi schemes collapse because they rely on an ever-increasing pool of new investors to pay out previous ones—an unsustainable cycle.”

In contrast, when you buy mining hashpower at minetxc.com, you’re not opening a liquid investment account. The money you spend—ranging from $995 to $8,955—is a sunk cost. It’s gone, used to purchase computers, cover operational expenses, and pay affiliate commissions. You don’t expect your principal back, nor do you earn interest or returns on that purchase. Instead, it’s an opportunity to generate cryptocurrency.

The TEXITcoins you receive are produced by the computers you’re funding—they’re not in dollars, but in digital currency. Their value is determined by the open market. Because there’s no obligation to pay back any principal or interest, this isn’t a Ponzi scheme. It’s a legitimate business operation, with real expenses like hardware, electricity, staff, and marketing.

Cryptocurrency, in essence, is money created without debt. It’s free from usury—no one is lending it into existence, and no one owes it back. It’s wealth that’s generated because the cryptocurrency itself has value. TEXITcoin’s properties—being harder to counterfeit, faster to trade, more secure, and cheaper to transfer—give it many advantages over gold and silver. It’s off-grid, doesn’t need physical shipment, and can’t be seized or stopped.

After my explanation, the businessman chuckled and said, “So, it’s an honest Ponzi.”

His remark was likely meant to be humorous or perhaps to poke fun. I can’t remember exactly what I said in reply, but I might have quipped, “An honest Ponzi—only because it’s not a Ponzi at all.”

Later, Bobby Gray, the founder of TEXITcoin, heard this story and asked me to write it up to clarify the differences.

Interestingly, I found there’s no legal definition of a Ponzi scheme. The law never explicitly mentions “Ponzi”—that’s just the name of Charles Ponzi, who ran one of the most infamous schemes in history. Prosecutors tend to go after the core elements—like fraud, securities violations, wire fraud, or mail fraud—rather than the label itself.

A widely accepted description from In re Madoff Investment Securities LLC characterizes a Ponzi scheme as involving:

• Promises of high returns with little or no risk
• Paying earlier investors with funds from new investors
• Lack of legitimate business activities generating those returns
• An eventual collapse when new investor funds dry up

Both Madoff and Ponzi claimed to earn high returns through arbitrage, but neither actually did. Arbitrage involves buying in one market and selling in another to profit from price discrepancies—something that quickly narrows and eliminates the profit opportunity.

Bobby Gray openly admits that investing in TEXITcoin involves risk, describing it as “crypto” and “scammy like an MLM.” But it’s important to distinguish that it’s not an MLM—because payments are capped, preventing the pyramid structure typical of such schemes. Even MLM professionals, once they understand the cap, see the value in that.

Unlike Ponzi schemes, TEXITcoin makes no promises of returns. Payments to early participants come from affiliate referrals—similar to a finder’s fee or advertising payout—and are perfectly legal. The project has legitimate operations: purchasing hardware, mining, listing on exchanges, and market making to stabilize the coin’s value.

Furthermore, the crowdfunding for the mining infrastructure will eventually conclude, marking the start of a new phase aimed at increasing the coin’s value.

Now, I’ll be honest—because payments to early investors through the affiliate program, along with funds allocated to support the cryptocurrency’s price, might instinctively seem Ponzi-like. However, that is not what’s happening here. If we compare TEXITcoin to how companies issue stock via private placements or conduct stock buybacks, those actions are legally recognized and similar in nature.

What sets TEXITcoin apart is that it’s not a stock, nor is it regulated by the SEC. While the SEC has attempted to extend its authority over cryptocurrencies, the current administration has halted those efforts, signaling a more friendly stance toward digital currencies issued in America.

Another key difference is that minetxc.com regularly sells mining hashpower daily. There’s no stock issuance, no private placements requiring minimum investments of $50,000 to $250,000. Instead, it’s a continuous crowdsourcing effort open to as many people as possible, with purchases capped at 900 hashpower per person—equivalent to $8,955. Plus, there’s no holding period for the coins you receive; they can be traded immediately.

It almost seems like Bobby Gray is intentionally doing things differently—completely separate from traditional Ponzi schemes and even from how mining companies used to operate.

Unlike silver mining stocks, which I knew well but found unpopular, cryptocurrency is extremely popular. Instead of catering only to wealthy investors, Bobby is aiming for widespread adoption, encouraging participation from as many people as possible. He is intentionally creating a decentralized, broad-based network right from the start.

I’m no longer paid to write specific articles; instead, my compensation comes through the affiliate program. If you decide to sign up to mine TEXITcoin, please use our sponsor ID: JHOMM.

To get started, first purchase cryptocurrency—preferably the stablecoin USDC—on an independent exchange like Kraken or Coinbase. We now recommend kraken.com.

Then, sign up at minetxc.com. Make sure the sponsor GOGATSBY is listed.

Contact me is you have any questions or need help with the signup process including with sourcing USDC.