IOSG: Papertrade, a casino that returns 86% of rake to gamblers, traders net loss of $63.2M According to IOSG researcher Mario Chow, the 1000x leverage perpetual platform Papertrade, launched on October 10, generated $136.1B in trading volume within 9 days. However, only $335M in real funds were deposited by approximately 23,000 addresses, with traders collectively netting a loss of $63.2M. Out of these losses, $54.1M (86%) was distributed to stakers of the platform token PAPER. Ironically, the stakers are essentially the same group of people losing money: the top 1,000 wallets hold 88% of PAPER, bear 81% of the losses, and take 91% of the dividends. PAPER can only be mined by losing money on the platform. The issue lies in the fact that winners’ payouts can only come from the pool left by losers, with no one backing it up. IOSG states that this isn’t a Ponzi scheme, but for winners waiting to cash out, they can only get paid if new money keeps flowing in.