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Mandatory reminder that YC itself has funded and is promoting (https://www.ycombinator.com/companies/yotta https://www.ycombinator.com/companies/yotta) a compan

Mandatory reminder that YC itself has funded and is promoting (https://www.ycombinator.com/companies/yotta https://www.ycombinator.com/companies/yotta) a company that not only lost people's "savings" (despite misleading promises of FDIC insurance - which didn't actually cover their predictable failure mode: https://www.cnbc.com/2024/06/21/synapse-collapse-nearly-109m-in-yotta-customer-deposits-vanish.html https://www.cnbc.com/2024/06/21/synapse-collapse-nearly-109m...) but is now operating an outright gambling scheme that is typically seen in unregulated Eastern-European casinos: https://members.withyotta.com/moonshot/ https://members.withyotta.com/moonshot/.

kmnc 1y ago
YC is a scam mill, always has been. Every now and then one of those scams turns into a real business. It’s an effective model.
- back2dafucha 1y ago
  This mentality is why I refuse to work in Silicon Valley. You can fool some of the people all of the time. But with Fake AI - tech has finally found its "waterloo". I wont feel a damn bit sorry for any of these people when it blows.
reaperducer 1y ago
I didn't know about Yotta, and looked it up … Adam Moelis told CNBC in June 2024 that 85,000 Yotta customers, with a combined $112 million in deposits, could not access their funds. https://en.m.wikipedia.org/wiki/Yotta_Technologies https://en.m.wikipedia.org/wiki/Yotta_Technologies Eep!
itake 1y ago
> despite misleading promises of FDIC insurance I never really understood why people thought this was misleading. FDIC insurance would insure against the underlying bank failing, not Yotta or their fintech partners. I never saw any marketing material claiming that Yotta (or their fintech partner: Synapse) was a licensed bank.
- deleted 1y ago
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