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“You Don't Own Web3”: A Coinbase Curse and How VCs Sell Crypto to Retail

97 points by muzz 5y ago

rvz 5y ago
> Is the game rigged. In a way, yes. the VCs know it is a scam, which is why they are doing it. > The never listed coin is the best; the listed, non-VC coin is better; and the listed, VC-backed coin is the worst. Precisely. It is exactly what happened to Internet Computer when that launched on Coinbase and Binance, as the author in this article describes, as well as I did [0][1]. The same happened especially with ENS [2][3][4] and the same happened with DESO. [5] These tokens listed out of no where on Coinbase or Binance, so that means that insiders who bought in at private token sales are using these exchanges to unload their holdings on to the retail buyers on the exchanges when they list. By the time that has happened, it is too late and expect a pump and dump on the token price, hence why all these tokens are 'under performing'. As for the ENS token, they are doing it all over again via another airdrop [6], just look at how much ENS they can 'airdrop' and gift just to pump the price again. That is the hype of 'web3' illusion and scam. [0] https://news.ycombinator.com/item?id=27492858 https://news.ycombinator.com/item?id=27492858 [1] https://www.binance.com/en/support/announcement/33b6e8116ce54705ac89e898d1a05510 https://www.binance.com/en/support/announcement/33b6e8116ce5... [2] https://coinmarketcap.com/currencies/ethereum-name-service/ https://coinmarketcap.com/currencies/ethereum-name-service/ [3] https://www.binance.com/en/support/announcement/6dcf651bba03484b87666d49474f8c07 https://www.binance.com/en/support/announcement/6dcf651bba03... [4] https://twitter.com/coinbase/status/1457857919068737543?lang=en-GB https://twitter.com/coinbase/status/1457857919068737543?lang... [5] https://coinmarketcap.com/currencies/deso/ https://coinmarketcap.com/currencies/deso/ [6] https://decrypt.co/87505/coinbase-votes-favor-another-ethereum-name-service-airdrop https://decrypt.co/87505/coinbase-votes-favor-another-ethere...
- Tenoke 5y ago
  In what way does an airdrop pump the price? If anything it should be the opposite. Now Coinbase voting at all and showing involvement with a project might pump it but that wouldn't be because there's an airdrop.
  - rvz 5y ago
    It happens before doing the actual airdrop. It creates another FOMO effect for late adopters who missed out to meet the airdrop requirements or to buy in before snapshotting the blockchain. That will pump the price. After the actual airdrop happens, a mass sell off from many long term holders will happen to take advantage of the FOMO. Everyone knows that another airdrop will happen so I will expect the ENS price to initially to go up for a short while and then go down again. That is a clear pump and dump.
orthopodvt 5y ago
Seems like a pretty reasonable analysis of what is going on. I'd be interested in hearing any rebuttals.
- waffle_maniac 5y ago
  He’s comparing a very narrow range after listing but you can buy crypto at anytime using DEXs. He compares it to an IPO but it’s easy to buy crypto before it’s listed on a centralized exchange and much harder to buy equity in a private company. So yes, retail had its shot before a major CEX listing. If you bought Solana or Cardano in the bear market you are outperforming Bitcoin. Solana was a few bucks in 2020 and close to $260 in 2021.
  - goatsi 5y ago
    The average Coinbase retail investor is not going to use a DEX. In fact I would be surprised if over 50% of their users have ever transmitted coins away from Coinbase a single time. Sure the first users were obtaining BTC for productive purposes like buying from darknet markets, but the majority of their users have come during the investment booms. From their S1 they are holding $90 billion in cash and fiat. $44 billion of that is for institutions, but the rest is from retail investors who are buying what Coinbase makes available to them and letting it sit in the app while they wait for it to go up.
blintz 5y ago
> Those insiders include venture capital firms like a16z and, incredibly, Coinbase’s own venture arm, which has a number of investments listed on Coinbase. As someone who is not as familiar with the day-to-day machinations of this field, this really surprised me. Does anyone at Coinbase care that there might be this massive conflict of interest? How can this be legal/ethical? At a more basic level, don't they at least feel kinda slimy about it? I thought there would at least be some kind of hamfisted "we keep these departments separate" statement w.r.t who gets listed, but I don't even think they claim that. In fact at the launch for Coinbase Ventures, they said "You can expect that we’ll enthusiastically invest in ideas from our own alumni network."
- clpm4j 5y ago
  I would imagine that slimy-ness feeling might wash away, at least a little bit, after you buy your $133 million (cash deal) Bel Air mansion: https://archive.fo/UugwG https://archive.fo/UugwG
- nikanj 5y ago
  Basically all of crypto is strategems that would be illegal in conventional finance, but all participants pretend they’re legal due to crypto
  - manbart 5y ago
    That seems to be the whole point of “crypto” (I.e. selling facsimile securities to avoid regulation)
  - tata71 5y ago
    I can't keep standing by as this continues to be parroted here. You see the same machinations by some percentage of bad actors to take advantage of regulation not existing yet in any and every industry, from fruit, to paper manufacturing. Yes, in many cases Coinbase doesn't list coins they don't like, and rushes to list ones it does. This just further highlights the important of knowing, to every depth possible, whose code you're running and who you're doing business with, because the buck stops with you, and governments can only continue to try to protect from an after-the-fact, further-harm-reduction viewpoint.
NetWorth16254 5y ago
It is interesting, that most crypto businesses have investment from Digital Currency Group and DCG belongs mostly to Mastercard.
- nathias 5y ago
  Is it also interesting that most of facebook competitors get bought by facebook?
  - libraryatnight 5y ago
    Yes
graiz 5y ago
Tracking performance relative to ETH and BTC seems flawed to me. Tokens/Coins can have investment properties that are more or less speculative so the relative price to other cryptos may be irrelevant. As an example FileCoin is a storage token and more of a utility coin rather than a value store. I think the point around conflicts of interest is sound. A16Z should probably step down from the board.
- wallacoloo 5y ago
  i think the point is to benchmark the “what if i did invest in FileCoin” v.s. the “what of i didn’t invest in FileCoin” case. where would your $ be if you didn’t invest in FileCoin? for a lot of people actually making that decision, the default place that money would be is one of Eth/Btc/stablecoins with yield (debt based)/S&P 500 (totally different regulatory area). so if you want to look at the “what if i don’t invest” scenario, without radically changing the other preferences of where that money goes, Eth/Btc comparisons seem pretty reasonable.
- wmf 5y ago
  FileCoin is a storage token and more of a utility coin rather than a value store. It's really not in practice. 99% of the value is from speculation.
waffle_maniac 5y ago
> The “hits” in VC are supposed to be “100x” returns to make up for dozens of failures, but of a16z’s listings only one (Solana) managed to at least double in BTC terms. The return on Solana from bear market to bull market is far in excess of 100x.
chris123 5y ago
That's what you get for investing in alt coins, their garbage.
- waffle_maniac 5y ago
  Compare the lows and highs of Solana and Cardano.
- JSavageOne 5y ago
  That's like saying stocks are garbage.
waffle_maniac 5y ago
> You’re a nocoiner. Nope, I’m long BTC, ETH, and NEAR, with March ‘22 $26 puts on BITO to hedge some of the recent volatility. Do people do this to feel smart? You’re already speculating by buying the actual asset. What’s the point of doing more?
Rastonbury 5y ago
I've lost respect for VCs that peddles web3 hard, just add sheen to random coins and get a sizable % of the float, easy money. In the past VC used to fund companies that created valuable products (mostly), this contrasts against hedge funds or HFTs who make money off arbitrage, legitimate imo but are characterised as vultures by some. Retirees sharing altcoins tips in WhatsApp groups is going to be that scene in the Big Short where the stripper has 3 mortgages
- bluedevil2k 5y ago
  I can beat that scene in Big Short. I was recently at Petra (in Jordan) and hired a tour guide. He told me he grew up in the caves of Petra before the government forcefully moved them out and put them in a small poor town next to it. Providing tours was how he supported his wife and 4 kids. About 30 mins into the tour he asked me if I wanted to see his crypto portfolio and showed me on his phone about 10 coins I had never heard of before.
  - Rastonbury 5y ago
    Good story. Another one is how my friend's dad pokes fun at his BTC and ETH portfolio gains because he's in a private discord and has had the privilege of buying an NFT for 5 digits than is supposedly worth a few hundred K because there are listing on opensea for that much
pl0x 5y ago
Well written article. Eventually regulation will catch on but by then Marc Andressen, Chamath, Balaji and the many other grifters of the Valley would have made their extra billions and launch their new funds promoting their next grift.
andutu 5y ago
Anything I talk about below is not financial advice. Full disclosure: My crypto holdings consist of around 1 ETH and $5 worth of BTC on Coinbase. Anyone remember Monero? A POW crypto using state of the art cryptography such as ring signatures and Bulletproofs to guarantee private, secure transactions? It's secure enough that almost half of all dark web transactions are done using it despite its market cap being a fraction that of BTC. So secure that the IRS put out a $675,000 bounty for anyone who could find critical vulns. There's RandomX which is Monero's POW algo which is designed to run best on general CPUs and actually run terribly on ASICs? And to top it off, it has transaction fees in the fraction of cents. With all of the talk by many crypto hustlers about banking the unbanked, "digital freedom", etc., that Monero would be perfect! So, why aren't VCs pouring money into developing it like they are into new web3 stacks? It's because it's old news. It doesn't get enough eyeballs like a listing on Coinbase. You can't build digital fiefdoms using Monero, no ICOs, no pump and dumps. You can't have middlemen like OpenSea skim off the top and gatekeep. There's no artificial scarcity of coins. Monero isn't "useful" for the vision of web3 that investors have. Most people don't have the time to read through every single whitepaper put out. It's easier to join a Discord server waiting for an airdrop, to read a bunch of Tweets, and check what's on Coinbase. It's just more convenient. True, Monero doesn't have smart contract support and there are things like Tornado Cash which can emulate what Monero offers. Monero is still a sizeable player in the space and a lot of developers behind it. On top of that are all the controversies around Monero such as certain bad actors abuse CI integration services to mine it. But as the article points implies, for the majority of crypto investors/whales it's mainly about making a quick buck before moving on to the next pump. I'm optimistic for a crypto future. Smart contracts are a great idea (though there's polishing needed) and there are other decentralized technologies out there I'm excited for. The Ethereum Foundation, Starkware, and others have helped push new and exciting cryptography research. Hopefully when the next correction comes, all the noise dissipates from the space.
- jack_pp 5y ago
  I won't comment about the gold rush aspects of crypto right now because they're pretty obvious but regarding the PoW algorithm of Monero, I think that's its fatal flaw long term. Any coin that doesn't have a huge moat of ASIC miners backing it up is vulnerable to attack. You can't attack bitcoin without coordinating existing miners but any coin that can be mined with general CPUs could be attacked by govts or corps which have access to large general compute resources.
yeetaccount4 5y ago
Moxie Marlinspike had a good take on this, specifically about NFTs being a blockchain with a web link to the “asset”. Whoever controls the server (or DNS) controls the “asset”. If I was to seriously entertain the notion of NFTs I’d at least want my token to be a hash of the “asset” in question (or hashes, computed with differing algos, in case of collisions). Anything else is a non starter. We’re one hilarious hack away from some $50m NFT being turned into a collage of dicks.
- babyshake 5y ago
  I might be wrong but I believe if the NFT metadata links to a protocol like IPFS and the NFT contract does not allow the metadata URL to be updated, it is not possible for the link or linked content to be altered.
  - exit 5y ago
    "NFT" by itself doesn't tell you enough to know how the metadata is constrained. NFTs pointing to regular URLs are just particular examples of terrible usage.
mizzao 5y ago
> for the last few years, Coinbase put out the names of coins they were thinking to list, but never did. I analyzed those coins - and found they did even better than the ones that made it, and the VC-backed ones didn’t show any of the same underperformance. This is implying a causal relationship that may be misleading. Is it that coins invested in by VCs underperform? Or is it that fraudulent or scammy coins are more likely to seek out VC investment? Or worse, is it that rug-pulling scammers are both more likely to seek out VC and list on Coinbase to take as much money as they can and run?
deleted 5y ago
[deleted]
aaroninsf 5y ago
Curious if rising interest rates put an end to the party. Had an interesting debate with a friend yesterday, he thinks the money laundering value is so high the NFT market will never collapse; I opined that the appetite for any single get-rich-quick scheme is bounded by the number of peers one has who lose out; and that personal experience of that kind is weighted higher than the irrational exuberance; at that when the bit flips and the latter begins to be viewed through a soured lens of failing to Get Rich, things decay quickly, and the next fad takes hold. At which point the "market" for NFTs implodes as can fully be anticipated, because while the money laundering would love it not to, it needs noise and chaos to get away with its own targeted grift. Reminded, I need to order more popcorn. Gonna be a great show.
dmitriid 5y ago
The only reason Jack Dorsey is "calling out" VC-funded crypto-scams is that he is in pre-marketing/marketing stages of his own crypto-scam.
batman-farts 5y ago
I largely agree with the writer’s skepticism, both of the coins and of the VCs, but shouldn’t it be straightforward if time-consuming to confirm insider selling? If these are public blockchains, one ought to be able to notice and correlate big outflows from addresses with large holdings, no?

97 points by muzz 5y ago

rvz 5y ago

> Is the game rigged. In a way, yes. the VCs know it is a scam, which is why they are doing it. > The never listed coin is the best; the listed, non-VC coin is better; and the listed, VC-backed coin is the worst. Precisely. It is exactly what happened to Internet Computer when that launched on Coinbase and Binance, as the author in this article describes, as well as I did [0][1]. The same happened especially with ENS [2][3][4] and the same happened with DESO. [5] These tokens listed out of no where on Coinbase or Binance, so that means that insiders who bought in at private token sales are using these exchanges to unload their holdings on to the retail buyers on the exchanges when they list. By the time that has happened, it is too late and expect a pump and dump on the token price, hence why all these tokens are 'under performing'. As for the ENS token, they are doing it all over again via another airdrop [6], just look at how much ENS they can 'airdrop' and gift just to pump the price again. That is the hype of 'web3' illusion and scam. [0] https://news.ycombinator.com/item?id=27492858 https://news.ycombinator.com/item?id=27492858 [1] https://www.binance.com/en/support/announcement/33b6e8116ce54705ac89e898d1a05510 https://www.binance.com/en/support/announcement/33b6e8116ce5... [2] https://coinmarketcap.com/currencies/ethereum-name-service/ https://coinmarketcap.com/currencies/ethereum-name-service/ [3] https://www.binance.com/en/support/announcement/6dcf651bba03484b87666d49474f8c07 https://www.binance.com/en/support/announcement/6dcf651bba03... [4] https://twitter.com/coinbase/status/1457857919068737543?lang=en-GB https://twitter.com/coinbase/status/1457857919068737543?lang... [5] https://coinmarketcap.com/currencies/deso/ https://coinmarketcap.com/currencies/deso/ [6] https://decrypt.co/87505/coinbase-votes-favor-another-ethereum-name-service-airdrop https://decrypt.co/87505/coinbase-votes-favor-another-ethere...

Tenoke 5y ago
In what way does an airdrop pump the price? If anything it should be the opposite. Now Coinbase voting at all and showing involvement with a project might pump it but that wouldn't be because there's an airdrop.
- rvz 5y ago
  It happens before doing the actual airdrop. It creates another FOMO effect for late adopters who missed out to meet the airdrop requirements or to buy in before snapshotting the blockchain. That will pump the price. After the actual airdrop happens, a mass sell off from many long term holders will happen to take advantage of the FOMO. Everyone knows that another airdrop will happen so I will expect the ENS price to initially to go up for a short while and then go down again. That is a clear pump and dump.

orthopodvt 5y ago

Seems like a pretty reasonable analysis of what is going on. I'd be interested in hearing any rebuttals.

waffle_maniac 5y ago
He’s comparing a very narrow range after listing but you can buy crypto at anytime using DEXs. He compares it to an IPO but it’s easy to buy crypto before it’s listed on a centralized exchange and much harder to buy equity in a private company. So yes, retail had its shot before a major CEX listing. If you bought Solana or Cardano in the bear market you are outperforming Bitcoin. Solana was a few bucks in 2020 and close to $260 in 2021.
- goatsi 5y ago
  The average Coinbase retail investor is not going to use a DEX. In fact I would be surprised if over 50% of their users have ever transmitted coins away from Coinbase a single time. Sure the first users were obtaining BTC for productive purposes like buying from darknet markets, but the majority of their users have come during the investment booms. From their S1 they are holding $90 billion in cash and fiat. $44 billion of that is for institutions, but the rest is from retail investors who are buying what Coinbase makes available to them and letting it sit in the app while they wait for it to go up.

blintz 5y ago

> Those insiders include venture capital firms like a16z and, incredibly, Coinbase’s own venture arm, which has a number of investments listed on Coinbase. As someone who is not as familiar with the day-to-day machinations of this field, this really surprised me. Does anyone at Coinbase care that there might be this massive conflict of interest? How can this be legal/ethical? At a more basic level, don't they at least feel kinda slimy about it? I thought there would at least be some kind of hamfisted "we keep these departments separate" statement w.r.t who gets listed, but I don't even think they claim that. In fact at the launch for Coinbase Ventures, they said "You can expect that we’ll enthusiastically invest in ideas from our own alumni network."

clpm4j 5y ago
I would imagine that slimy-ness feeling might wash away, at least a little bit, after you buy your $133 million (cash deal) Bel Air mansion: https://archive.fo/UugwG https://archive.fo/UugwG
nikanj 5y ago
Basically all of crypto is strategems that would be illegal in conventional finance, but all participants pretend they’re legal due to crypto
- manbart 5y ago
  That seems to be the whole point of “crypto” (I.e. selling facsimile securities to avoid regulation)
- tata71 5y ago
  I can't keep standing by as this continues to be parroted here. You see the same machinations by some percentage of bad actors to take advantage of regulation not existing yet in any and every industry, from fruit, to paper manufacturing. Yes, in many cases Coinbase doesn't list coins they don't like, and rushes to list ones it does. This just further highlights the important of knowing, to every depth possible, whose code you're running and who you're doing business with, because the buck stops with you, and governments can only continue to try to protect from an after-the-fact, further-harm-reduction viewpoint.

NetWorth16254 5y ago

It is interesting, that most crypto businesses have investment from Digital Currency Group and DCG belongs mostly to Mastercard.

nathias 5y ago
Is it also interesting that most of facebook competitors get bought by facebook?
- libraryatnight 5y ago
  Yes

graiz 5y ago

Tracking performance relative to ETH and BTC seems flawed to me. Tokens/Coins can have investment properties that are more or less speculative so the relative price to other cryptos may be irrelevant. As an example FileCoin is a storage token and more of a utility coin rather than a value store. I think the point around conflicts of interest is sound. A16Z should probably step down from the board.

wallacoloo 5y ago
i think the point is to benchmark the “what if i did invest in FileCoin” v.s. the “what of i didn’t invest in FileCoin” case. where would your $ be if you didn’t invest in FileCoin? for a lot of people actually making that decision, the default place that money would be is one of Eth/Btc/stablecoins with yield (debt based)/S&P 500 (totally different regulatory area). so if you want to look at the “what if i don’t invest” scenario, without radically changing the other preferences of where that money goes, Eth/Btc comparisons seem pretty reasonable.
wmf 5y ago
FileCoin is a storage token and more of a utility coin rather than a value store. It's really not in practice. 99% of the value is from speculation.

waffle_maniac 5y ago

> The “hits” in VC are supposed to be “100x” returns to make up for dozens of failures, but of a16z’s listings only one (Solana) managed to at least double in BTC terms. The return on Solana from bear market to bull market is far in excess of 100x.

chris123 5y ago

That's what you get for investing in alt coins, their garbage.

waffle_maniac 5y ago
Compare the lows and highs of Solana and Cardano.
JSavageOne 5y ago
That's like saying stocks are garbage.

waffle_maniac 5y ago

> You’re a nocoiner. Nope, I’m long BTC, ETH, and NEAR, with March ‘22 $26 puts on BITO to hedge some of the recent volatility. Do people do this to feel smart? You’re already speculating by buying the actual asset. What’s the point of doing more?

Rastonbury 5y ago

I've lost respect for VCs that peddles web3 hard, just add sheen to random coins and get a sizable % of the float, easy money. In the past VC used to fund companies that created valuable products (mostly), this contrasts against hedge funds or HFTs who make money off arbitrage, legitimate imo but are characterised as vultures by some. Retirees sharing altcoins tips in WhatsApp groups is going to be that scene in the Big Short where the stripper has 3 mortgages

bluedevil2k 5y ago
I can beat that scene in Big Short. I was recently at Petra (in Jordan) and hired a tour guide. He told me he grew up in the caves of Petra before the government forcefully moved them out and put them in a small poor town next to it. Providing tours was how he supported his wife and 4 kids. About 30 mins into the tour he asked me if I wanted to see his crypto portfolio and showed me on his phone about 10 coins I had never heard of before.
- Rastonbury 5y ago
  Good story. Another one is how my friend's dad pokes fun at his BTC and ETH portfolio gains because he's in a private discord and has had the privilege of buying an NFT for 5 digits than is supposedly worth a few hundred K because there are listing on opensea for that much

pl0x 5y ago

Well written article. Eventually regulation will catch on but by then Marc Andressen, Chamath, Balaji and the many other grifters of the Valley would have made their extra billions and launch their new funds promoting their next grift.

andutu 5y ago

Anything I talk about below is not financial advice. Full disclosure: My crypto holdings consist of around 1 ETH and $5 worth of BTC on Coinbase. Anyone remember Monero? A POW crypto using state of the art cryptography such as ring signatures and Bulletproofs to guarantee private, secure transactions? It's secure enough that almost half of all dark web transactions are done using it despite its market cap being a fraction that of BTC. So secure that the IRS put out a $675,000 bounty for anyone who could find critical vulns. There's RandomX which is Monero's POW algo which is designed to run best on general CPUs and actually run terribly on ASICs? And to top it off, it has transaction fees in the fraction of cents. With all of the talk by many crypto hustlers about banking the unbanked, "digital freedom", etc., that Monero would be perfect! So, why aren't VCs pouring money into developing it like they are into new web3 stacks? It's because it's old news. It doesn't get enough eyeballs like a listing on Coinbase. You can't build digital fiefdoms using Monero, no ICOs, no pump and dumps. You can't have middlemen like OpenSea skim off the top and gatekeep. There's no artificial scarcity of coins. Monero isn't "useful" for the vision of web3 that investors have. Most people don't have the time to read through every single whitepaper put out. It's easier to join a Discord server waiting for an airdrop, to read a bunch of Tweets, and check what's on Coinbase. It's just more convenient. True, Monero doesn't have smart contract support and there are things like Tornado Cash which can emulate what Monero offers. Monero is still a sizeable player in the space and a lot of developers behind it. On top of that are all the controversies around Monero such as certain bad actors abuse CI integration services to mine it. But as the article points implies, for the majority of crypto investors/whales it's mainly about making a quick buck before moving on to the next pump. I'm optimistic for a crypto future. Smart contracts are a great idea (though there's polishing needed) and there are other decentralized technologies out there I'm excited for. The Ethereum Foundation, Starkware, and others have helped push new and exciting cryptography research. Hopefully when the next correction comes, all the noise dissipates from the space.

jack_pp 5y ago
I won't comment about the gold rush aspects of crypto right now because they're pretty obvious but regarding the PoW algorithm of Monero, I think that's its fatal flaw long term. Any coin that doesn't have a huge moat of ASIC miners backing it up is vulnerable to attack. You can't attack bitcoin without coordinating existing miners but any coin that can be mined with general CPUs could be attacked by govts or corps which have access to large general compute resources.

yeetaccount4 5y ago

Moxie Marlinspike had a good take on this, specifically about NFTs being a blockchain with a web link to the “asset”. Whoever controls the server (or DNS) controls the “asset”. If I was to seriously entertain the notion of NFTs I’d at least want my token to be a hash of the “asset” in question (or hashes, computed with differing algos, in case of collisions). Anything else is a non starter. We’re one hilarious hack away from some $50m NFT being turned into a collage of dicks.

babyshake 5y ago
I might be wrong but I believe if the NFT metadata links to a protocol like IPFS and the NFT contract does not allow the metadata URL to be updated, it is not possible for the link or linked content to be altered.
- exit 5y ago
  "NFT" by itself doesn't tell you enough to know how the metadata is constrained. NFTs pointing to regular URLs are just particular examples of terrible usage.

mizzao 5y ago

> for the last few years, Coinbase put out the names of coins they were thinking to list, but never did. I analyzed those coins - and found they did even better than the ones that made it, and the VC-backed ones didn’t show any of the same underperformance. This is implying a causal relationship that may be misleading. Is it that coins invested in by VCs underperform? Or is it that fraudulent or scammy coins are more likely to seek out VC investment? Or worse, is it that rug-pulling scammers are both more likely to seek out VC and list on Coinbase to take as much money as they can and run?

deleted 5y ago

[deleted]

aaroninsf 5y ago

Curious if rising interest rates put an end to the party. Had an interesting debate with a friend yesterday, he thinks the money laundering value is so high the NFT market will never collapse; I opined that the appetite for any single get-rich-quick scheme is bounded by the number of peers one has who lose out; and that personal experience of that kind is weighted higher than the irrational exuberance; at that when the bit flips and the latter begins to be viewed through a soured lens of failing to Get Rich, things decay quickly, and the next fad takes hold. At which point the "market" for NFTs implodes as can fully be anticipated, because while the money laundering would love it not to, it needs noise and chaos to get away with its own targeted grift. Reminded, I need to order more popcorn. Gonna be a great show.

dmitriid 5y ago

The only reason Jack Dorsey is "calling out" VC-funded crypto-scams is that he is in pre-marketing/marketing stages of his own crypto-scam.

batman-farts 5y ago

I largely agree with the writer’s skepticism, both of the coins and of the VCs, but shouldn’t it be straightforward if time-consuming to confirm insider selling? If these are public blockchains, one ought to be able to notice and correlate big outflows from addresses with large holdings, no?