YC invested in what was clearly an outright fraud? Or did they pivot do hard that nobody noticed?
They were skimming yield(in return of a nice UI) on a risky yield asset with poor disclaimers and extremely reckless risk management systems
YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
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Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#12I imagine (and hope) those 5k where mostly crypto bros who knew what they were getting into. Who else expects 15% returns from a "safe" investment?
Crypto bros would forgo the middleman and get the 20% yield instead.
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#13Earlier quoted context omitted.
A poor decision does not equal fraud.
Promising a guaranteed 15% return is fraud. There is no place in reality where you can * guarantee * that kind of return.
They explain the risks on their website: https://stablegains.zendesk.com/hc/en-us/articles/4402687751...
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#14Here's a Twitter thread from @stablegains that clearly highlights the implosion as it's happening => USD.https://twitter.com/stablegains/status/1523874916206059525
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#15"Stablegains makes earning with DeFi simple and safe for consumers and businesses alike."
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#16Earlier quoted context omitted.
Promising a guaranteed 15% return is fraud. There is no place in reality where you can * guarantee * that kind of return.
They explain the risks on their website: https://stablegains.zendesk.com/hc/en-us/articles/4402687751...
If there are risks, how can the 15% be guaranteed?
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#17Earlier quoted context omitted.
Promising a guaranteed 15% return is fraud. There is no place in reality where you can * guarantee * that kind of return.
They explain the risks on their website: https://stablegains.zendesk.com/hc/en-us/articles/4402687751...
They explain the risks, while excluding the risk of, you know, the stablecoin depegging.
This is like the 10th algo stablecoin to eat shit. You would think by now, a risk person could adequately describe these existential risks.
Stablegains was a rent collecting middleman. The risks are not characterized adequately on this page, and there ought to be some level of liability.
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#18Earlier quoted context omitted.
A poor decision does not equal fraud.
Promising a guaranteed 15% return is fraud. There is no place in reality where you can * guarantee * that kind of return.
That's a good question. Are you liable for fraud in this case? What about another case?
Say you promise 0.75% because the bank promised you 1% and you skim 0.25%. Is that scenario fraud? Probably not. At what point is it actually fraud?
My guess is it's not the yield but the loss of deposits.
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#19YC invested in what was clearly an outright fraud? Or did they pivot do hard that nobody noticed?
YC has been investing into a lot of blockchain startups in the last few years. They clearly think there is a market for blockchain startups.
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#20Earlier quoted context omitted.
Promising a guaranteed 15% return is fraud. There is no place in reality where you can * guarantee * that kind of return.
That's a good question. Are you liable for fraud in this case? What about another case? Say you promise 0.75% because the bank promised you 1% and you skim 0.25%. Is that scenario fraud? Probably not. At what point is it actually fraud? My guess is it's not the yield but the loss of deposits.
At the point you don't have capability to pay the 0.75% yourself.