zlacker

>>donsup+(OP)
The last few weeks (months, really) has highlighted an incredible lack of discernment in the VC-verse wrt the thing we call web3. Now. I have no experience doing what YC does and don’t claim to, but the jig here was so transparent that the smallest drop of “street smart” should’ve been enough to set off some alarms.

We’re approaching a point where being passed over for “culture fit” is a compliment. Hopefully the embarrassment is enough to expand the founder vetting checkboxes.

>>okwubo+x7
If they’re unlucky they lose $500k, which is nothing. If they’re lucky they get a Coinbase. Why not.

>>oefrha+i8
yep. The scam is:

1. VCs provide a ton of money, to incentivise token issuers.

2. The issuers pump out a pile of tokens that would constitute unregistered penny stocks. The VCs buy in.

3. If the SEC doesn't bust the issuers, the VCs make a bundle, and much quicker than they could funding a productive company.

4. If the SEC does bust the issuers, the poor widdle investors are protected from the evil issuers, who have to refund investors - the VCs don't lose.

It's the gig economy of penny stock scams, with the legal risk being borne by the issuers.