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Seems like a ponzi scheme in crypto collapses almost every other week these days. It was LUNA in May Celsius now Probably USDD soon A lot of these "fake int
by gadnuk 4y ago
Seems like a ponzi scheme in crypto collapses almost every other week these days.
It was LUNA in May
Celsius now
Probably USDD soon
A lot of these "fake internet money" coins have no use cases other than trading with the next sucker willing to buy on crypto platforms
And then you have platforms like Coinbase facilitating trading of such "assets" or tokens with little to no due diligence
A lot of these:
Failed as a currency
Failed as an inflation hedge
Failed as a store of value
Crypto bros will try to do whatever mental gymnastics they can to justify their investment, probably because they are all in. But I can't wait for most of these coins to implode for good as they serve no use to society. Comparable to cigarettes (zero health benefits) than wine (harmful in large amounts, has health benefits in moderation).
If someone is offering you a yield of more than 18% APY, then you are the yield to the next guy!
- JumpCrisscross 4y agoThere seems to be a surplus of capital in our economy. Macroeconomically speaking, crypto is private actors taking the fall for us all.
- TrapLord_Rhodo 4y ago'Taking the fall"? BTC is still up an incredible amount over the last 5 years. More like created a new tech elite while shaking out the free-loaders every cycle.
- headsoup 4y agoWhat is 'tech elite' here?
- wmf 4y agoA fancy term for rich people who think they got rich because they're so smart.
- CryptoPunk 4y ago
- TrapLord_Rhodo 4y agoSame as every Elite through history. Money, Influence over politics, Knowledge of dark corners.
- tempsy 4y agoi think VC involvement has made this space far more dangerous now. don’t think Celsius could’ve gotten where they are now without willing VCs pouring hundreds of millions into building the company up despite how risky the entire business model is/was. now this is going to become an existential threat to the whole ecosystem.
- ABeeSea 4y agoIt also gives obvious nonsense an air of validity. VCs giving several millions to something like StepN is a drop in the bucket for the VC portfolio. But this money makes it seem to an average person that maybe the VCs see something the don’t. So they are now willing to buy in. I also wonder how much VCs are insider trading their own project’s coins and don’t care about the actual company because they made their profit on the rug pull.
- rvz 4y ago> A lot of these: Failed as a currency Failed as an inflation hedge Failed as a store of value Indeed. I don't know why at the time you had people buying something at >$60K (and I warned them not to [0]) or even so-called soothsaying influencers predicting at the time that it will reach >$100,000 in the same year. [1] or even predicting DOGE reaching $1 by September 2021. [2] Certainly it was to manipulate retail at buying the top and never selling. So today, where are these 'experts' now? [1][2] It seems the HODL narrative of Bitcoin as either a 'currency', 'hedge against inflation', and 'store of value' means it is a complete failure and is only useful for speculation. But not all 'coins' (not tokens) are exactly as useless like Bitcoin is. I would expect the maximalists to keep screaming HODL everywhere to be trending to keep the cult relevant until the next cycle as many of them have bought in at very high prices (Because Musk, Saylor, etc told them to) [0] https://news.ycombinator.com/item?id=27206314 https://news.ycombinator.com/item?id=27206314 [1] https://news.ycombinator.com/item?id=25776080 https://news.ycombinator.com/item?id=25776080 [2] https://news.ycombinator.com/item?id=27046019 https://news.ycombinator.com/item?id=27046019
- technion 4y agoI do not understand how some of these influencers are still influencers at all. Once a person has admitted to taking money to shilling four different rugpulls, how is it considered positive advertising to say "X has thrown his influence behind it!"?
- charcircuit 4y ago>If someone is offering you a yield of more than 18% APY I think you misunderstand what's happening. The 18.63% APY that they are currently offering is on a coin that went down 11.71% today. The rewards are locked for 1 year and are paid in CEL which is down 54.64% today. The actual yield of the investment in USD is not going to be at a rate to reach 18.63% APY.
- paulgb 4y agoI don’t think that contradicts OP’s point, though? If you buy in you’re someone else’s yield. The mechanism for that transfer is that your investment depreciates faster than the yield, while the other person is able to liquidate and you’re not.
- charcircuit 4y agoOP is referring to an 18% APY in USD where Celsius is referring to an APY in the target coin. I don't quite follow your logic. Assuming withdraws weren't paused like they are now you would still be able to liquidate your position.
- UncleEntity 4y ago> Assuming withdraws weren't paused like they are now you would still be able to liquidate your position. That’s the funniest thing I’ve read in a long time…
- throwaheyy 4y ago>If someone is offering you a yield of more than 18% APY
- TrapLord_Rhodo 4y agoEconomically speaking, nothing in crypto is a new. Only the fact that they obfucate the 'free money' with technical gargon. Paypal paid was burning hundreds of millions of dollars a month in giving away free money in order for it to gather market share.
- landemva 4y agoImplementing AMMs was new to me. I hadn't seen that before.
- woah 4y agoHN doesn't want to talk about technology on this subject
- cuteboy19 4y agoThe technology is just a front, marketing material. It's not meant to be taken seriously. Even most crypto investors have the same mindset
- wmf 4y agoAFAIK AMMs are a workaround for the fact that Ethereum smart contracts are too slow to implement a normal order book matching engine.
- TrapLord_Rhodo 4y agoI didn't mean any of the tech in crypto isn't new, I'm bullish on the ecosystem in general. Was simply saying paying for market share is nothing new. However, AMM's are not new to crypto. The only thing new about crypto AMM's is that plebs like me can invest in them. Usually they are reserved for the wealthy elite, where back room deals and orderflows are handshakes instead of smart contracts. However, it is still technically illegal for US plebs to access AMM's(Non-accreddited).
- junofan 4y agoConsensus capital markets are fairly novel: https://mirror.xyz/alkimiya-protocol.eth/PbTyQ3JnVtGq54fLjDr9toMLliWX_HMox9PQCFkZvsw https://mirror.xyz/alkimiya-protocol.eth/PbTyQ3JnVtGq54fLjDr...
- puranjay 4y agoUSDD is next, but Justin has a habit of degening his way out of trouble. Wouldn’t bet completely against him