undefined | Better HN

0 pointsromeros4y ago0 comments

The problem with this approach is that the founders can inadvertently start a pump and dump scheme that crypto comes with.

You want to organize the worlds information and build a search engine. Okay, you create a google coin. You issue 21 Million coins.

As soon as you announce it people are going to buy in and you will in a period of a few months become a billionaire. With no product. Just an idea.

And then you get to dump your shares on the "investors" and you get to be a billionaire.

There is no incentive to further develop your idea.

Look at what happened to ICP. The VCs got in at 3 cents a coin. Each coin shot up to $750 per coin. Then the VCs dumped it on the retail noobs making a lot of money with absolutely no working product.

0 comments

rabuse4y ago

I understand the argument there, but this happens in the stock market as well, which is heavily regulated already. There will never be a perfect system, but at least crypto levels the playing field a bit more for less fortunate who want to make something and need capital, and don't have the social connections/wealth most founders today have.

j / k navigate · click thread line to collapse