Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls” • Hacker News Board

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#11

Post by unbanned » Thu, Dec 16, 2021, 4:03 PM UTC

wyager wrote: post #3

I often wonder to what extent scams like this have positive externalities, insofar as the people who get scammed were perhaps unlikely to allocate capital in socially efficient ways.

Interesting point. Would you rather have few unscrupulous, enterprising individuals have a significant proportion of wealth, or have this distributed between many people who are mentally challenged (easily conned)...

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#12

Post by marban » Thu, Dec 16, 2021, 4:03 PM UTC

I found https://moonarch.app/ > top gainers, to be a good starting point to watch from the sidelines.

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#13

Post by zozin » Thu, Dec 16, 2021, 4:06 PM UTC

The DotCom Bubble/scam led to investor losses in excess of $5 trillion.

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#14

Post by pjc50 » Thu, Dec 16, 2021, 4:07 PM UTC

marban wrote: post #7

mnadkvlb wrote: post #4

Well, Melania just launched an NFT. gotta be legit. It even saves the kids, it says so. Happy times /s

Powered by Parler. What can possibly go wrong?

People demanded uncensorability, they can have all the scams they want.

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#15

Post by wyager » Thu, Dec 16, 2021, 4:07 PM UTC

ceejayoz wrote: post #9

wyager wrote: post #3

I often wonder to what extent scams like this have positive externalities, insofar as the people who get scammed were perhaps unlikely to allocate capital in socially efficient ways.

Are the scammers now in possession of $7.7B likely to "allocate capital in socially efficient ways"?

Perhaps more likely than the scammed. For example, the scammers may purchase equities.

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#16

Post by isoprophlex » Thu, Dec 16, 2021, 4:08 PM UTC

The optimal level of fraud in society is not 0, as combating fraud costs money.

I'm not sure if the current level of crypto-enabled pump and dump is the optimal level though ;)

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#17

Post by cheeseomlit » Thu, Dec 16, 2021, 4:08 PM UTC

If you put money into an obvious scam you deserve to lose it. Hopefully they learned something from the experience, but I doubt it

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#18

Post by bananabernhard » Thu, Dec 16, 2021, 4:08 PM UTC

zozin wrote: post #13

The DotCom Bubble/scam led to investor losses in excess of $5 trillion.

yeah, but the 7.7B is only the scam part - I'd suspect the bubble part of cryptocurrencies and NFTs will be much higher

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#19

Post by rwaksmunski » Thu, Dec 16, 2021, 4:08 PM UTC

I really hate to say it, but I have little sympathy for the victims here. They wanted a moon shot, wild west, libertarian paradise and got ... robbed with no recourse. Many more than once.

Re: Cryptocurrency scams cost owners $7.7B in 2021, driven by DeFi-based “rug pulls”

#20

Post by Mvandenbergh » Thu, Dec 16, 2021, 4:09 PM UTC

wyager wrote: post #15

ceejayoz wrote: post #9

Earlier quoted context omitted.

Are the scammers now in possession of $7.7B likely to "allocate capital in socially efficient ways"?

Perhaps more likely than the scammed. For example, the scammers may purchase equities.

Would be quite funny if the scammers were hard-core Bogleheads dumping everything into ultra-low-fee index funds.