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YC, like most incubators, has always encouraged their companies to use products and services from other companies in their portfolio. The simplest explanation
by Aurornis 9mo ago
YC, like most incubators, has always encouraged their companies to use products and services from other companies in their portfolio.
The simplest explanation is that this is a mostly symbolic move: They want to show that the stable coin and crypto companies they invest in are actually trusted by YC. It starts to look hypocritical if an investor is funding crypto companies and praising them as important breakthroughs, but not actually using them where it’s important.
- 7e 9mo agoBut what advantages do stablecoins have?
- toomim 9mo agoFaster and cheaper transactions that don't get locked up by the whims of a bureaucracy. They continue to operate on non-business days.
- irishcoffee 9mo agoAt the end of the day, for better or worse, the US dollar is backed by the US military. Virtual coins are backed by the greater fool. What a strange toss-up.
- Onavo 9mo agoBut the stable coins are also backed by the US military. All major USD stablecoins have sanctions mechanisms baked into their smart contract. See for yourself the blacklist features https://github.com/circlefin/stablecoin-evm/tree/master/scripts/hardhat https://github.com/circlefin/stablecoin-evm/tree/master/scri...
- anukin 9mo agoUsdc is backed by US dollar denominated treasuries for most major issuers.
- deleted 9mo ago[deleted]
- zx8080 9mo ago> US dollar is backed by the US military. No, it's not. It's not possible to come to the US soldiers with a bunch of US dollars and some demands and get what's demanded in return for the dollars. Only trust of the other market participants backs the US dollar.
- direwolf20 9mo agoIt's the other way around. If you don't trade in dollars, the military comes and demands that you do.
- RealityVoid 9mo agoIs the peso backed by the Mexican government? Because I'm afraid of all these militaries coming and knocking down my door to use their money.
- Aurornis 9mo agoThat’s also a downside: When your funds can be transferred away by anyone who happens to acquire the key without triggering any fraud prevention or additional verification checks, losing your entire bank account at 4AM Sunday morning becomes much easier.
- koakuma-chan 9mo ago[flagged]
- pertymcpert 9mo agoUnnecessary rudeness.
- koakuma-chan 9mo agoStrong language used for emphasis. I apologize if anyone was offended.
- vasco 9mo agoIt's also a lie, you can pay for many things without raising limits.
- koakuma-chan 9mo agoWhy does the bank decide what I can pay for? That's bullshit.
- Ekaros 9mo agoIs there some magic in redeeming them? And by redeeming I mean going to issuer and getting the face value in seconds?
- direwolf20 9mo agoYou can redeem stablecoins in blocks of a million if you are a registered bank. This is the only way to redeem them. Otherwise you can only trade them.
- baxtr 9mo agoI don’t think that matters. It’s a sign of commitment to something they’ve invested in as OPs says.
- luke5441 9mo agoSeigniorage accrues to private entities instead of the state, enriching the owners of those private entities rather than everyone in the state that issues the currency.
- nivertech 9mo ago> Why do stablecoins exist at all? For states: They quietly inflate the money supply by forking fiat, achieving monetary base expansion without the political cost of explicit money creation For issuers: They convert user deposits into a private mint: risk-free interest on collateralized reserves, with none of the upside shared with holders For users: For everyone but the unbanked & criminals, stablecoins are strictly inferior money surrogate: no yield, no guarantees, and no recourse
- deleted 9mo ago[deleted]
- onion2k 9mo agoYC, like most incubators, has always encouraged their companies to use products and services from other companies in their portfolio. Are you saying founders don't mount an FTP account using curlftpfs and access it using SVN?
- csmpltn 9mo agoLike a pyramid scheme?
- latexr 9mo ago> YC, like most incubators, has always encouraged their companies to use products and services from other companies in their portfolio. Advising unproven risky businesses to depend on other unproven risky businesses? Doesn’t that just increase the likelihood that something goes wrong?
- remus 9mo agoFrom the POV of YC, they don't mind too much if it is a bit risky for any given individual company if it increases the legitimacy and stability of their portfolio as a whole.
- direwolf20 9mo agoThe already 99.9% likelihood?
- jazzyjackson 9mo agoDoes anyone remember being voluntold to use Skiff for email and calendar, instead of a product that actually handles timezones in event invites? I'm convinced the point of YC must be something other than launching successful businesses
- Nevermark 9mo agoWould you consider it risky for a startup to use its own product? I would consider that a risk decreaser, because the loop creates a stronger fit signal. Even more powerful, since across a cohort the encouragement is N-way, or really N^2-way, it actually lowers risk on average the more startups act as each others’ early customers. And co-adopters benefit from getting unusually responsive suppliers with a strong indirect stake in mutual success. Encourage isnt a requirement. Adopt only if it makes sense.
- an0malous 9mo agoIt's been like 3 years since Silicon Valley Bank got a bailout because a bunch of startups put their money in a bank that wasn't guarded against economist instability.