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[return to "YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers"]
1. okwubo+x7[view] [source] 2022-05-19 07:20:31
>>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.

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2. photon+Aa[view] [source] 2022-05-19 07:49:35
>>okwubo+x7
There were funds that did due diligence and built out models of the Luna/Terra/Anchor ecosystem and realized it was unstable.

You can talk to the people who built their models and they have lots of fun things to say about the ordeal.

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3. hcks+5b[view] [source] 2022-05-19 07:55:16
>>photon+Aa
Do you have any links / references regarding that? I'd like to read more
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4. mellav+Sx[view] [source] 2022-05-19 11:53:50
>>hcks+5b
https://www.bloomberg.com/opinion/articles/2022-04-19/the-st...

> Here is how an algorithmic stablecoin works. You invent two tokens, call them Dollarcoin and Sharecoin. ... The process is sometimes compared to algorithmic central banking, where the central bank maintains the value of the currency (Dollarcoin) by adjusting its supply.

> On first principles this is insane.

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