Fwiw a lot of YC companies have had large collapses. For example Homejoy which is a lot bigger than this company. It happens. Startups are risky. Not huge news.
Meh YC backs a lot of scams masquerading as businesses. This period of easy money and wealth concentration has fostered much in the way of misallocation of capital. Y-Combinator exists to make its owners money. Their primary concern is bloody Benjamins, not morality and the public interest.
> Inspired by the possibilities across DeFi, our aim was to go beyond Anchor and to integrate with multiple protocols so that users could have easy access to multiple tools and allocate their assets across all of them based on their judgment of the benefits, costs, and risks of each option. Unfortunately, we didn’t get there in time.
Their previous marketting said (or at least implied) that they were spread across different defi products to protect against this exact risk.
That is not the same thing as "we planned to get there eventually, but didn't in time". This is borderling to an institution saying "We're FDIC insured!" but actually meaning "We hope to be FDIC insured at some point in the future".
Lying to customers about what you're doing with their investment funds is 100% illegal and literally what Martin Shkreli was in prison for (and that case didn't even end with him losing all of his investors money)
Anybody promising low-risk, high-return investment is a fraud. After all, why would they have to convince you to invest money if they could just do it themselves?
I’d probably assume somebody looked at “15% interest” as a sales pitch and “losing all of your money” as the actual thing that happened and concluded that it was fraud.
See [1]. If you sell a deposit-like product by saying "you will not lose your funds," and then lose the funds, you go to jail. (First you lose your money.)
The circular relationship between Terra and Luna is really fishy. It's probably not really a scam today, but similarly structured schemes should probably be classified as such and criminalized in the future.
Fwiw a lot of YC companies have had large collapses. For example Homejoy which is a lot bigger than this company. It happens. Startups are risky. Not huge news.
Meh YC backs a lot of scams masquerading as businesses. This period of easy money and wealth concentration has fostered much in the way of misallocation of capital. Y-Combinator exists to make its owners money. Their primary concern is bloody Benjamins, not morality and the public interest.
As I've said elsewhere, having dealt with them and seen who they invest in, morality does not seem to be an important aspect of YC investments.
Interestingly, they removed their prominent YC branding very recently after the collapse. Compare:
https://twitter.com/stablegains/status/1523874916206059525
https://web.archive.org/web/20220510035811/https://twitter.c...
A fraudulent company going bankrupt because the fraud collapsed.
Source on the company being fraudulent?
Source on Terra being a fraud?
Please provide sources for your ad-hominems.
> Inspired by the possibilities across DeFi, our aim was to go beyond Anchor and to integrate with multiple protocols so that users could have easy access to multiple tools and allocate their assets across all of them based on their judgment of the benefits, costs, and risks of each option. Unfortunately, we didn’t get there in time.
Their previous marketting said (or at least implied) that they were spread across different defi products to protect against this exact risk.
That is not the same thing as "we planned to get there eventually, but didn't in time". This is borderling to an institution saying "We're FDIC insured!" but actually meaning "We hope to be FDIC insured at some point in the future".
Lying to customers about what you're doing with their investment funds is 100% illegal and literally what Martin Shkreli was in prison for (and that case didn't even end with him losing all of his investors money)
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Anybody promising low-risk, high-return investment is a fraud. After all, why would they have to convince you to invest money if they could just do it themselves?
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I’d probably assume somebody looked at “15% interest” as a sales pitch and “losing all of your money” as the actual thing that happened and concluded that it was fraud.
What exactly is fraud by your estimation?
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(I upvoted you btw, I don't like to censor).
I'm a maximalist and even I am not that disingenous.
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> Source on the company being fraudulent?
See [1]. If you sell a deposit-like product by saying "you will not lose your funds," and then lose the funds, you go to jail. (First you lose your money.)
[1] https://news.ycombinator.com/item?id=31462617
Source: https://en.m.wikipedia.org/wiki/Do_Kwon
That's not an ad hominem.
The circular relationship between Terra and Luna is really fishy. It's probably not really a scam today, but similarly structured schemes should probably be classified as such and criminalized in the future.
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