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MakerDAO’s “DAI” stablecoin is breaking, as predicted

prestonbyrne.com

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Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#11

Post by sna1l »

It is funny because this guy also fundamentally doesn't understand how Basecoin works.

"If the price of 1 BASE is above $1, the blockchain prints new $BASE to holders of “BASE Shares” (mother of god), a standalone cryptocurrency which is issued in the genesis block and held by early adopters, which then distributes new Basecoins to them as a “dividend.” Holders of “BASE Shares” are free to either hold onto their Dividend-Basecoins (thus not bringing the price down) or sell them into the market, pushing out the supply curve and bringing down 1 BASE’s price. This process continues until the price of 1 BASE drops to $1."[0]

Actually, the Basecoin will first go to the Bond holders. I think there are reasons to be skeptical of Basecoin and stable cryptocurrencies, but this guy's "articles" don't really seem to touch on those.

https://prestonbyrne.com/2017/10/13/basecoin-bitshares-2-ele...

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#13

Post by cowpig »

krrrh wrote: post #10
hal9000xp wrote: post #3

Actually, for such laughably small trading volume DAI is as stable as mountain: https://coinmarketcap.com/currencies/dai/#markets I do expect DAI to be more stable as adoption and trading volume grows. Author of is article is a troll. In his last post he wrote literally: > Having taken fifteen minutes to review the MakerDAO paper MakerDAO is probably one of the most ambitious projects on Ethereum with pretty complica…

> Author of is article is a troll. He may have an incendiary and flippant writing style, but it’s worth noting that he was a founder and COO of Monax (née Eris) which released an open source private-chain fork of Ethereum in 2014. He’s qualified to have an opinion on complex smart contracts and not be called a troll. If anything he’s emblematic of the frustration felt by many early adopters who understand that the hy…

"Author of this article is a troll" != "Author of this article doesn't have a technical background"

I also have a strong background in the field and the MakerDAO project took me a long time to understand. The author makes several mistakes in his opening paragraph.

I'm not entirely convinced that the project will work as intended, but the author clearly doesn't even understand the basic ideas.

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#14

Post by jerrycabbage »

In the past, this person trolled Bitshares to make a name for themselves. They selectively cut'n'pasted snippets of the Bitshares forum as some form of evidence in other posts. There is a ton of context there that was removed. A blockchain can give an asset value, but that doesn't mean every market will guarantee those prices. He is now going after the Maker coin. The guy does well SEOing his website with this rubbish but he doesn't seem to understand much outside of that. oh well, no big deal until google/ycombinator point to him as an authority.

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#15

Post by cowpig »

oh_sigh wrote: post #12

If a group wants to peg a coin to the dollar, why don't they just issue coins for $1, put that directly into a savings account, and allow redemption of any coin for $1?

That's called Tether, and its primary problem is that everyone is taking the issuers at their word that the money is going into a savings account, and that they are only issuing it when they receive $1.

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#16

Post by jerrycabbage »

krrrh wrote: post #10
hal9000xp wrote: post #3

Actually, for such laughably small trading volume DAI is as stable as mountain: https://coinmarketcap.com/currencies/dai/#markets I do expect DAI to be more stable as adoption and trading volume grows. Author of is article is a troll. In his last post he wrote literally: > Having taken fifteen minutes to review the MakerDAO paper MakerDAO is probably one of the most ambitious projects on Ethereum with pretty complica…

> Author of is article is a troll. He may have an incendiary and flippant writing style, but it’s worth noting that he was a founder and COO of Monax (née Eris) which released an open source private-chain fork of Ethereum in 2014. He’s qualified to have an opinion on complex smart contracts and not be called a troll. If anything he’s emblematic of the frustration felt by many early adopters who understand that the hy…

False. He actually has went and reworked troll posts he made in the past. Thats what this guy does. He has no intellectual integrity. His technical background (calling yourself COO doesn't really count as a technical background)

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#17

Post by tenaciousDaniel »

onestone wrote: post #5

FUD. Insufficient liquidity on some exchange might cause the price to fluctuate briefly, of course. But it quickly corrected back to $1.

And unless I'm mistaken, the people at Maker never said it was hard-pegged to the dollar. It was a soft peg, so the price could fluctuate here and there, but remain roughly stable.

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#18

Post by [deleted] »

cowpig wrote: post #15
oh_sigh wrote: post #12

If a group wants to peg a coin to the dollar, why don't they just issue coins for $1, put that directly into a savings account, and allow redemption of any coin for $1?

That's called Tether, and its primary problem is that everyone is taking the issuers at their word that the money is going into a savings account, and that they are only issuing it when they receive $1.

[deleted]

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#19

Post by andypants »

withdavidli wrote: post #6
yusee wrote: post #2

Tether gets criticized for being fractional, but it's more stable than fancy collateralized derivative products. Cryptocurrency never ceases to amaze me.

Tether gets criticized for having no released third party audits that they actually hold the hundreds of millions of dollars that is backing their token. They say they have frequent audits on their website, their transparency update that they called the Friedman audit, in the same paragraph states that it does not constitute as an audit[0]. In the same “audit”, Friedman stated they did not evaluate if tether owned th…

It doesn't even matter if they don't hold the USD to back tether. They make it clear in their ToS that users cannot redeem their USDT for USD. There is no known case of anybody being able to cash out USDT directly from tether.to. It is only possible by exchanging on third party sites or with other users.

Tether is a money-printing scam by a company who had their bank account frozen, so instead of handling USD they came up with the wonderful scheme of USDT.

https://medium.com/@bitfinexed/spoiler-alert-the-institution...

Re: MakerDAO’s “DAI” stablecoin is breaking, as predicted

#20

Post by MicahZoltu »

mtgx wrote: post #8
yusee wrote: post #2

Tether gets criticized for being fractional, but it's more stable than fancy collateralized derivative products. Cryptocurrency never ceases to amaze me.

Wait, tether is fractional now? Wasn't one of their big promises that Tether is always backed up 1:1 by the dollar?

Tether claims to be full reserve. The contention people have is that there is little to know proof that they are _actually_ full reserve. Also, there is risk in Tether that some government will seize all of their assets (there is lots of precedence for this).
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