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
If they are unregulated then it isn't a crime until it is a crime, and in this case, by then far too late to sort out.

Even when it does go wrong, there still might not be a crime any more serious than being an idiot, obviously would be different if the company misrepresents itself for gain, which would be fraud.

I suspect that many of these people genuinely believe their own hype, which is how they convince others to buy into it.

>>lbrine+Tb1
If sold to people in USA and if SEC deems it should have been registered as a security, then get ready for a well-deserved enforcement action. Would not want to be an American and on board of directors or a senior contributor or part owner.