Aaaand we have a first comment to answer, that probably reflect the attitude/feeling of part of the BTC community :
I’ve played around with this and it feels like a potential ponzie to me.
They (who?) sell nubits for dollars to release nubits into the wild and so someone (who?) is holding the market cap’s worth of dollars somehow on an exchange somewhere (where?).
nushares seem to exist to obfuscate this simple fact - for every new nubit released someone (who?) gets a new dollar.
Instead of ignoring this, we should try to understand why its is perceived this way and what can we do to inform. Until this skeptical wall of accusation goes away, we will not be able to move forward as much as we should
The simple reply I’ve found that works well is - “What is Bitcoin backed with?”. We’re selling digital tokens that have a value of $1.00 US, until they’re obsolete and they don’t.
If we had even a 1% reserve we would have more protection for holders of NuBits than Bitcoin. There seems to be a widespread belief that BTC prices couldn’t crash down to almost nothing in the presence of a superior competitor.
Anyways I’m going to go make a comment.
I dont think they will care about ponzie scheme or not -
The question is: is it useful or not?
Guessing intention of questionw is futile and counter productive. We should treat the questions as honest ones and give straight answer: Those dollars are in the hands of custodians who are entrusted by Nu network shareholders, and are shareholders themselves. Being geographically distributed and anonymous, Nu network shareholders have financial stakes in keeping 1 Nubit = 1 USD.