Clinamenic

θερμοδυναμικός καπιταλιστής
I know there is the concept/idea that this is a parallel economy and shouldn't be affected by market trends etc but the naivety of this idea is shocking to me

This is identical to the Spotify attempt to shore up their stock, weirdly, and Eks failed in that attempt as well

If UST tanks completely then surely the idea of Tether etc begins to struggle as well, despite the supposed "real money" backing it up.

Whats the point
Although it should be said that UST is an "algorithmic stablecoin" backed by assets that aren't dollars or dollar equivalents. I'm pretty sure UST is backed, directly or indirectly, by Bitcoin. So really its DAI that should be on edge, seeing as that is the other big algo stablecoin. USDC is backed by dollars/dollar equivalents, and UDST (Tether) is ostensibly backed by dollars/dollar equivalents, but I have my doubts about Tether, as does almost everyone in the space haha.

At any rate, the UST depegging is categorically different from some of the other stablecoins, which isn't to say they have nothing to worry about.
 

Clinamenic

θερμοδυναμικός καπιταλιστής
are you suddenly losing a lot of money or something?
Right now I'm down probably 35%, but I'm chillin. Fortunately I can afford to wait it out, which is why I stress this as a precondition for investing: Don't invest funds that you need for other things. Others articulate this as "don't invest what you can't afford to lose" which comes out to the same point, in terms of strategy, but conflates depreciation with loss.
 

Clinamenic

θερμοδυναμικός καπιταλιστής
Hang in there
Haha thanks, but really this whole thing is probably having a way harder impact on others, namely those who are panic selling their assets and effectively losing money they may actually need.
 

catalog

Well-known member
This is the rub innit, this is why people are calling it an exploitative pyramid scheme, preying on vulnerable people
 

Clinamenic

θερμοδυναμικός καπιταλιστής
This is the rub innit, this is why people are calling it an exploitative pyramid scheme, preying on vulnerable people
Yeah, and the alternative is arguably even worse. Restricting investing to "accredited investors" IE people with high net worths, and those who pass certain exams (the latter of which being reasonable, in my opinion).

So either the small guys are free to make their own investing decisions, and are simply more vulnerable, or else they are restricted from entering capital markets.
 

Clinamenic

θερμοδυναμικός καπιταλιστής
Really the best solution I can think of, is education. Most retail investors in crypto have no sense of basic things like market capitalization, so yeah projects are better able to prey on people who think a token worth $0.0000001 is a good investment because it "only needs to get to a dollar and then I'm a millionaire."
 
Really the best solution I can think of, is education.

Educaton from who? 90% of the supposed experts in the field dont know their arse from their elbow financially- as is apparent from current panic- and are about as street wise as an otter.

The others who know the score have no doubt cashed out repeatedly and dont want "you" to know whats going on so they can fleece the market

Ive made a couple of quid on this over the years but ive always said the actual game is mostly useless apart from grey market economics.

The technology is fine but that doesn't mean that a random company's coin is worth $0.583763762 and you should buy x amount of them.

There will be lads topping themselves on the back of this crash like they do off the accas. Its not good
 

Clinamenic

θερμοδυναμικός καπιταλιστής
Gary Gensler taught a good course called Blockchain and Money, at MIT, and I watched the whole thing for free on youtube.

I think its clear there is an information asymmetry (early alphas and actual insider trading), and a technological asymmetry (enterprise grade analytics tools), which is why I advise against trading crypto, and would instead endorse passive investment informed by research. But at some point you have to admit that we're making our own decisions, in terms of what we invest in.
 

Clinamenic

θερμοδυναμικός καπιταλιστής
Youve done all that though, and youre 35% down? Unless im missing something here

The system itself is broken
Well I'm not panic selling, because I understand the technology enough to believe in it, and I have the time and resources to wait out a depreciated position. As opposed to someone who does no research, to whom all of this amounts to little more than magic internet money.
 

Clinamenic

θερμοδυναμικός καπιταλιστής
But I can hardly claim that brute force research allows you to predict the market or outperform the market on an indefinite basis.
 
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