I'm... uh.... fairly certain this was not the crux of their marketing which severly downplayed the underlying risk. There is also a huge spectrum between "we cannot guarantee that there is 0 risk" (which seems to be what the above sentence is saying), and "there exists a risk that all of your funds disappears in 24 hours".
It seems like there is some serious rewriting of history going on here.
Question though, do the founders here have any potential criminal liability from this whole situation (including apparently lying about what they were doing with their customers funds)?
https://news.ycombinator.com/item?id=31431915
-"15% interest. No surprises."
Will be interesting to hear the argument "Well technically there were no surprises here, because customers should not be surprised when they lose all their money investing in risky assets. Therefore, technically, we did not lie."
All the high yield is in algoponzis or new protocols that carry massive protocol risk
While they're not exactly forthcoming with the risks, their marketing pages[1] were also careful to not make any explicit claims of safety (eg. "your principal is protected", or "you won't lose money"). The most that they claimed were "stable" returns. For good measure there's also a disclaimer mentioning the risks.
>There is a range of safeguards in place to help secure your deposits, however holding and depositing stablecoins with Stablegains and third party lending platforms still carries significant risk. Please carefully read our Terms of Use and Risk disclosures in our Learning Center before making a deposit. Any deposit with Stablegains and third party lending platforms is entirely your responsibility. You understand that your principal is at risk.
[1] https://web.archive.org/web/20220108232821/https://www.stabl...
- "You will not lose your funds because all loans are 100% asset-backed." (https://stablegains.zendesk.com/hc/en-us/articles/4402680425...)
- "Regardless if crypto markets are soaring or crashing, the value of assets under our management remains stable." (https://stablegains.zendesk.com/hc/en-us/articles/4402687671...)
It's kind of shocking really that these statements are still up give how many of their other docs have been editted in the last 10 days.
---
Edit: u/ushakov is the hero of the hour for archiving those pages (https://archive.ph/O2lZV, https://archive.ph/ItERp)
I can show you links where even the Wayback machine has removed content, most people will know how Google Cache has removed content, so print all copies and have hard copies safely stored away where they cant be destroyed. Houses will be broken into in order to destroy evidence, I know I've had it done to me!
This may be your only chance to out the criminals that run the world!
These are both explicit examples of explicit claims of safety that are still up on their documentation (at least as of 5 minutes ago)
- "You will not lose your funds because all loans are 100% asset-backed." (https://stablegains.zendesk.com/hc/en-us/articles/4402680425...)
- "Regardless if crypto markets are soaring or crashing, the value of assets under our management remains stable." (https://stablegains.zendesk.com/hc/en-us/articles/4402687671...)
Edit: Updating link to fix truncated urls
>This may be your only chance to out the criminals that run the world!
Given that the screenshot is an (instagram?) ad, there's probably such a huge papertrail that can be subpoenaed that you don't have to worry about the founder breaking into your house to destroy the only copy of the marketing materials.
>The basis for Stablegains' rate is Anchor Protocol's yield. At the time of writing, Anchor yield is set at 18% - 20% APY and expected to remain so for a long time.
>We expect the rates of open finance protocols to beat those of traditional finance for a very long time.
https://stablegains.zendesk.com/hc/en-us/articles/4402680471...
These people need to be in jail. Deleting evidence isn't going to look good in front of the judge.
Everyone pour one out for u/ushakov, hero of the hour: https://news.ycombinator.com/item?id=31462674
https://stablegains.zendesk.com/hc/en-us/articles/4402680425...
https://stablegains.zendesk.com/hc/en-us/articles/4402687671...
I updated the the parent comment with the correct urls
The statement is kind of true if you want to be very disingenuous to what people actually care about.
Also, As far as I know, no one deposited UST with stablegains. Stablegains took funds in other formats and converted it themselves.
(No need to list the differences between stocks and cryptocurrencies.)