3 ms·

The banks will be ordered not to deal with the said firms, so they will have no real money coming/going to them.

by xxs 5y ago

betwixthewires 5y ago
That's the thing though, the stated goal of all this is for it to work without it being run by firms. Most of these projects are explicitly firms, or firms masquerading as not firms, or firms that have a clear goal to dissolve stewardship when these projects can run themselves, and there are a couple that aren't firms. As this process continues, there will be lots of projects running without a company of any kind. Once that happens, what are governments like that of New York going to be able to do?
- bee_rider 5y ago
  Regulators tend to not be super proactive and hypothetical, right? I suspect they'll wait until people losing money in truly community driven crypto markets becomes a significant issue, and then chip away wherever they interact with the real world, in New York.
  - betwixthewires 5y ago
    Well all those regulators will manage to accomplish is to stagnate their own financial centers and lose out on changes in the financial services industry. The city of new York supplanted the City of London as the worldwide financial powerhouse very early last century. This was partly (though not primarily) due to regulatory environments in the City of London to protect entrenched interests, thus putting them behind the curve and allowing this new, innovative city to take momentum in the financial industry. As the financial industry changes rapidly, particularly as it democratizes, we will see less influence from these behemoth financial centers, but anything one of them does to try to hinder these changes to protect itself will only accelerate it's demise within this industry. New York is making one of the mistakes the City of London did in the 20th century and it will pay for it.
impostervt 5y ago
The ones that I'm familiar with only take and lend crypto.
gunshai 5y ago
Your statement does not really make any sense. Unless you are talking about the centralized banking shutting the ramps to coinbase or other large fiat/crypto custodians/exchanges. That would piss off a lot of people. With respect to defi, other than trying to shut down entities that host the website which is really just a gui for interaction I'm stumped at what action exists. For instance, I go on coinbase buy ethereum and some wrapped token. I can then transfer that wrapped token to just about ANY smart chain I want paying for the tx, then use that money get an over collateralized loan, then go buy some other wrapped/native token collect what ever yield I want and use that to service the loan fees. I can then unwind the entire process when ever I want come back to coinbase sell the wrapped token on their open market and then turn it into fiat. That's not only it. I can unwind my loan/yield strategy convert it into an ERC20 stable token transfer that any fiat on/off ramp I want and voila. I'll use tools to keep track of the transfers/txs pay taxes to the IRS on the cost basis. What can they actually do about that other than action that WOULD cause mass panic and induce the very thing they are afraid of.

The banks will be ordered not to deal with the said firms, so they will have no real money coming/going to them.

by xxs 5y ago

The banks will be ordered not to deal with the said firms, so they will have no real money coming/going to them.

That's the thing though, the stated goal of all this is for it to work without it being run by firms. Most of these projects are explicitly firms, or firms masquerading as not firms, or firms that have a clear goal to dissolve stewardship when these projects can run themselves, and there are a couple that aren't firms. As this process continues, there will be lots of projects running without a company of any kind. Once that happens, what are governments like that of New York going to be able to do?

bee_rider 5y ago
Regulators tend to not be super proactive and hypothetical, right? I suspect they'll wait until people losing money in truly community driven crypto markets becomes a significant issue, and then chip away wherever they interact with the real world, in New York.
- betwixthewires 5y ago
  Well all those regulators will manage to accomplish is to stagnate their own financial centers and lose out on changes in the financial services industry. The city of new York supplanted the City of London as the worldwide financial powerhouse very early last century. This was partly (though not primarily) due to regulatory environments in the City of London to protect entrenched interests, thus putting them behind the curve and allowing this new, innovative city to take momentum in the financial industry. As the financial industry changes rapidly, particularly as it democratizes, we will see less influence from these behemoth financial centers, but anything one of them does to try to hinder these changes to protect itself will only accelerate it's demise within this industry. New York is making one of the mistakes the City of London did in the 20th century and it will pay for it.

impostervt 5y ago

The ones that I'm familiar with only take and lend crypto.

gunshai 5y ago

Your statement does not really make any sense. Unless you are talking about the centralized banking shutting the ramps to coinbase or other large fiat/crypto custodians/exchanges. That would piss off a lot of people. With respect to defi, other than trying to shut down entities that host the website which is really just a gui for interaction I'm stumped at what action exists. For instance, I go on coinbase buy ethereum and some wrapped token. I can then transfer that wrapped token to just about ANY smart chain I want paying for the tx, then use that money get an over collateralized loan, then go buy some other wrapped/native token collect what ever yield I want and use that to service the loan fees. I can then unwind the entire process when ever I want come back to coinbase sell the wrapped token on their open market and then turn it into fiat. That's not only it. I can unwind my loan/yield strategy convert it into an ERC20 stable token transfer that any fiat on/off ramp I want and voila. I'll use tools to keep track of the transfers/txs pay taxes to the IRS on the cost basis. What can they actually do about that other than action that WOULD cause mass panic and induce the very thing they are afraid of.