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I think Bankman-Fried is a realist. He understands that a lot of token economics don't make sense. Having a non-yielding asset pay some kind of yield is the cry

by bko 5y ago

I think Bankman-Fried is a realist. He understands that a lot of token economics don't make sense. Having a non-yielding asset pay some kind of yield is the crypto equivalent of a perpetual motion machine. It can work short term but long term its impossible unless the token has some other means of creating wealth (e.g. fee for some gambling scheme) But I think what he is doing is still valuable. He's creating financial products for this space and an important financial product is the ability to bet against something. This exerts a downward pressure on the asset and incentivizes people to find the most fraudulent projects and bet against them. Most of these shitcoins are trading in decentralized exchanges. What's the alternative? Ban certain types of math? Regulate what websites we can list? Try to dox the dex operators?

jqpabc123 5y ago
I think Bankman-Fried is a realist. Sure --- and a profiteer. I appreciate his candor. He obviously understands full well that the game makes no sense --- but he is perfectly willing to profit from those who don't.
- bko 5y ago
  I think he's providing a valuable service by creating products that exert a downward pressure on some coins. I don't see whats wrong with this. The default state allows for number to only go up until a rug pull.
  - jqpabc123 5y ago
    I think "providing a valuable service" is secondary to the fact that he stands to profit from it.
    - bko 5y ago
      Why is profit bad? Nearly every service I use is administered by someone profiting from it
      - jqpabc123 5y ago
        Profit can be either good or bad. The difference is often in *how* it is earned. The host from the article summarized it pretty well, "I’m in the Ponzi business and it’s pretty good”. Offering a service to rubes in a Ponzi scheme may not be illegal ... but it is not without ethical concerns either. Have you ever wondered why every corporation on the planet hasn't jumped into this highly profitable scheme of creating your own currency? They have the resources and the technical expertise to do it --- but they haven't. Ever wonder why?

by bko 5y ago

jqpabc123 5y ago

I think Bankman-Fried is a realist. Sure --- and a profiteer. I appreciate his candor. He obviously understands full well that the game makes no sense --- but he is perfectly willing to profit from those who don't.

bko 5y ago
I think he's providing a valuable service by creating products that exert a downward pressure on some coins. I don't see whats wrong with this. The default state allows for number to only go up until a rug pull.
- jqpabc123 5y ago
  I think "providing a valuable service" is secondary to the fact that he stands to profit from it.
  - bko 5y ago
    Why is profit bad? Nearly every service I use is administered by someone profiting from it
    - jqpabc123 5y ago
      Profit can be either good or bad. The difference is often in *how* it is earned. The host from the article summarized it pretty well, "I’m in the Ponzi business and it’s pretty good”. Offering a service to rubes in a Ponzi scheme may not be illegal ... but it is not without ethical concerns either. Have you ever wondered why every corporation on the planet hasn't jumped into this highly profitable scheme of creating your own currency? They have the resources and the technical expertise to do it --- but they haven't. Ever wonder why?