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Why are "normies" keeping their life savings on platforms whose express purpose and utility is cross network token swapping?
by scottiebarnes 4y ago
Why are "normies" keeping their life savings on platforms whose express purpose and utility is cross network token swapping?
- arlcode 4y agoBecause their loved ones, or peers or Facebook advertisement told them it's safe and a good way to stick it to the man. Usually just depositing money in a bank doesn't get it stolen so the assumption isn't unreasonable. Even if it's only 0.25*life saving that's still devastating for most people.
- rmbyrro 4y agoNormies should not put 25% even on VC-backed startups, let alone anonymous crypto shenanigans
- scottiebarnes 4y agoI'm confused about why anyone is comparing the security of a defi token swapping platform to that of a fiat savings account. If you want an apple to apples comparison you should be comparing the security of a savings account to that of a cold wallet. Those are much more alike in their function. I don't think we classify people who engage in cross network token swapping as "normies". That's like classifying algorithmic day traders as an "average joe investor".
- yibg 4y agoHow many "normies" know what a cold wallet is?
- scottiebarnes 4y agoHow many "normies" know what an IP address is?
- dcolkitt 4y agoThey’re not. The vast majority of early liquidity in this and most DeFi protocols is raised from institutions, VCs, and trading firms. This is especially the case for protocols like Nomad that don’t yet have a native token. They’ll get liquidity commitments through over-the-counter SAFT agreements that give the VCs a percent of the future tokens.