Summary
A teenage boy created and released three memecoins, earning over $50,000 by selling his holdings before the price crashed (“soft rug pull”).
The backlash was swift, with the boy and his family doxed and facing threats from angry traders.
While the legality of such actions is unclear, the incident highlights the risks and ethical dilemmas in the unregulated memecoin market.
We truly are in a golden age of scams.
If the deregulation of cryptocurrencies happens in the US, it will get even worse except for the predators.
Well, it was not as regulated as e.g. the stock market, but regulation of cryptocurrency was there and improving - with all the benefits and drawbacks.
In the very early days there were no KYC and AML policies at all.
Taking back the little regulation that has been introduced in the last few years doesn’t improve customer protection.
Tell me again how this nonsense will replace old fashioned “fiat currency” any day now.
No one has ever explained to me how crypto coins are not fiat currency considering they’re not backed by any commodities whatsoever.
I’m no proponent of crypto, but it’s clearly not meant to be backed by a commodity. When crypto people are taking about fiat currency, they’re talking about the fact that it’s state-issued.
What about if you take out inflation and offer transactions for zero fees while operating a network with little appetite for (electric) energy?
That would mean you’d never be left with dust amounts you can’t spend and no entity could debase your holdings by issuing more currency units.
Then the price would just be the result of supply and demand.
Of course that’s not what that teenager did or what the vast majority of cryptocurrencies do, but how it could and should be done.
Then the price would just be the result of supply and demand.
Since financial institutions will still own most of it, it will still be the same, except instead of the central bank doing it publicly, random hedge funds will be pumping and dumping randomly, and we can all go “the market works in mysterious ways”.
If financial institutions own most of it and aren’t regulated accordingly, what you say seems to hold true.
As soon as there’s sufficient regulation in place or financial institutions don’t own most of it, it won’t look so bleak.
Inflation IS the result of supply and demand (and other market forces such as the velocity of money).
You would need a mechanism to control the value of the currency to prevent inflation. Maybe an institution that offers loans could achieve this by adjusting the interest rate.
It would have to be a government entity, you wouldn’t want this responsibility to be in the hands of anyone with a profit motive. Maybe some kind of reserve bank operated by a federal government. We could call it the Federal Reserve.
You’re righr. I wasn’t specific enough. I meant inflation of the supply, the currency units. Increasing the supply can cause loss of real purchase power aka inflation.
With a stable supply and only the forces of supply and demand in place, real purchase power loss or increase are possible, which means there can be inflation or deflation.
Wait I feel like I remember reading about stuff like this in the early days if stock trading, people making fake companies, selling stocks and running off, more stringent rules started being put in place in the 1920’s-30’s
This is exactly why more regulation is needed in the space if they want it to be successful in the long term. But crypto bros can’t seem to be able to bring themselves to care about the long term (though I’m not sure I would either if I was made a multimillionaire overnight because of a memecoin or some shit)
Bitcoins should be used as god intended: buying prescription drugs from India. Most everything else is a circlejerk of stupid.
I’m not sure what current market place is the go to, but I would tread with caution.
I was in a bad way with Xanax a few years ago and used to order them on a darkweb marketplace, I nearly ruined my life and risk death from withdrawals.
There is also the risk of other chemicals being found in prescription drugs , such as fentanyl which can kill you with even trace amounts of it.
All that said I made dozens of orders and only ever had one not arrive. It goes without saying you should be making small orders for money you’re happy to lose. It’s often not the seller that will rip you off, but the marketplace doing an exit scam.
Wasn’t there a news piece about an eyedrop from India that killed a few people and made others go blind because of some bacterial infection?
Only fools use Bitcoin for shit like this when Monero exists.
Edit: To clarify, I mean for privacy and security purposes. I’ve got no intention of selling anyone on crypto lol
Ahh, there it is. I’m a fool. I don’t care what the stroke to tip ratio or whatever is on Bonero. I’m not interested in the technical wanking details. I merely wish to purchase goods and services.
I’m not investing in crypto. That’s what precious metals, the stock market, and real estate are for.
Bitcoin costs me $3 a transaction or so, everybody takes it, it’s easy.
Meme coin goes badly? How did I not see this coming?
