ESG stands for Environmental, Social and Corporate Governance. It functions as a powerful tool for driving sustainability, creating value and delivering a world which is more equitable.
The ESG has recently garnered a SJW (Social Justice Warrior) reputation. That means the organization can choose its own losers and winners. Unluckily for digital assets, ESG has a negative outlook towards cryptocurrencies.
ESG targets company-related externalities which affect the society and environment. These include factors like boardroom diversity, carbon emission and the satisfaction of employees.
ESG Receives Flack from Big Names
Due to its liberal-leaning image, the organization is receiving criticism from major players. Recently, Elon Musk tweeted that ESG was a scam. This comment came after ESG removed Musk’s Tesla from a major index. According to ESG, Tesla had not disclosed important info related to social issues ensuing in the factory. There was also an accusation of racism in Tesla’s offices.
Peter Thiel, the founder of PayPal, called ESG a “hate factory” for pushing its left-wing agenda over the general interests of the company.
Is Crypto really a Ponzi Scheme?
Calling cryptocurrency a Ponzi scheme is pushing things too far. There are multiple reasons why digital assets would make a bad Ponzi scheme. First, Ponzi schemes offer high rewards with minimal risks. Anyone who has ever traded in crypto will tell you that trading in crypto is highly risky due to market volatility.
Second, Ponzi schemes are often identified with chit funds and marketing schemes. Cryptocurrencies do not engage with these.