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
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.

>>photon+Aa
That raises an interesting ethical problem, really; should there be a duty to report this sort of thing, or is "scheme X is fundamentally flawed/a scam and investors will lose everything" legitimate proprietary information? As I understand it, various analysts were pretty sure at the time that Madoff's scheme was a Ponzi, but in general they didn't tell anyone (in fairness, one attempted to and had trouble getting listened to).

>>rsynno+1e
Unfortunately, you can shout "this is a scam" from the hilltops and people won't listen.

>>pjc50+9l
There’s a great recent Bloomberg Podcast episode (Odd Lots?) where the CEO of FTX interactive is describing yield farming, and it dawns on everybody (Matt Levine states it explicitly) that what he is describing is a Ponzi scheme.

And then the CEO guy basically says that their old school finance may consider it a Ponzi but it’s the future of finance and they’re just gonna end up suffering from FOMO.