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> Any project that financially rewards its creators feels like a cash grab to me. Are all non-crypto startup businesses 'cash grabs' in your opinion? Does tha
by cwkoss 4y ago
> Any project that financially rewards its creators feels like a cash grab to me.
Are all non-crypto startup businesses 'cash grabs' in your opinion? Does that make them scams?
- tromp 4y agoNo, they're not. But they're not advertising themselves as public goods the way cryptocurrencies do. A "people's currency" should not concentrate wealth beyond what pre-exists in the fiat realm.
- cwkoss 4y agoI think a very large proportion of startups overstate societal benefit...
- AlexandrB 4y agoI think it's a mistake to compare crypto tokens to stocks. Stocks represent fractional ownership of an organization with assets and cash flow. Crypto tokens only represent ownership of... themselves. The closest analog is the commodity market (gold, oil, etc.). And indeed, if someone discovered an easily mineable "new gold", hoarded a bunch of it, then hyped it up on the market so they could dump their reserves at inflated prices I would call that scammy. Edit: Actually we don't have to imagine this scenario. The diamond cartel[1] does something very similar already and yes, it's a scam. [1] https://are.berkeley.edu/~sberto/debers.pdf https://are.berkeley.edu/~sberto/debers.pdf