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I wanted to build a joke NFT project with some friends, just to take a closer look at crypto since I never developed on it. I need to say that there is some so
by 01acheru 5y ago
I wanted to build a joke NFT project with some friends, just to take a closer look at crypto since I never developed on it.
I need to say that there is some solid tech in that space but there are still some fundamental problems to be solved, structural problems, and I'm not seeing a solution. But we are not here to talk about it...
Reading about DAOs is funny because I really understand them now, after talking with those friends of mine who know nothing about tech and should have handled other parts of the project. I understand their meaning: 99% of the time they are a clever way of fooling people.
There is a lot of enthusiasm around crypto lately and some smart people, overhearing a lot of stuff (and fluff) they don't understand simply try to jump into the bandwagon. They are smart people in their lives but without tech knowledge they become the bigger fools when entering the crypto sphere.
But when you fool a smart person he will try to fall on his feet, he will never admit he got fooled so now he needs to fool someone else so to exit the game with lesser losses, or even gains if he's really smart... it's a weird variant of a Ponzi scheme and also an incredible social experiment.
My two cents.
edit: some language errors
- tata71 5y agoReplace "DAOs" with "companies", and "crypto" with "startups".
- ytpete 5y agoOne big difference is that your random uncle or sister-in-law can't just read about some trending startup and then semi-blindly invest a chunk of their life savings into it. Financial regulations prevent the average nonexpert from making those kinds of risky investments in relatively unregulated companies - you have to qualify as an "accredited investor" (i.e. either someone with deep pockets or expertise in financial markets). Publicly traded companies and investment funds are open to anyone, but in exchange they're subject to all sorts of regulations about transparency and accounting rules to make it "safer" for the average Joe to invest in. DAOs feel like they are really hoping to create an end run around all those financial protection laws.
- gumby 5y ago> DAOs feel like they are really hoping to create an end run around all those financial protection laws. The SEC agrees with you!