They just raised $3 million last month too. I assume they might need some more. https://blog.stablegains.com/we-raised-3-million-and-are-hir...
Hopefully they didn't park the investors' money in Anchor Protocol!
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
#32If someone is promising a high yield above the market rates, just ask where this yield comes from
Usually it's the risk premium. Which makes sense for these ponzi schemes.
Exorbitant returns - extremely high probability of ending up at the bottom of the pyramid.
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#33YC has made some questionable bets in the last few years. Quantity over quality?
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#34They’re just one of several shiny fintech apps/websites running the same scam, a modern two-and-twenty on a ponzi — but with really nice UI.
Alice (alice.co / @alice_finance) is another prominent one that may have lost customer funds, which was also using the Anchor protocol. It’s unclear how much they lost, but it’s interesting that Do Kwon’s name is still an actual logo listed on their home page.
And Vertex Protocol (vertexprotocol.com / @vertex_protocol) recently raised $8.5m to launch a trading platform based on the Anchor protocol, but because their Phase 1 beta had just closed and the open launch was not planned until this summer, it looks like they may have just barely dodged the bullet?
What I’m really curious about are the new and (of course) unregulated “insurance” products meant to cover catastrophic crypto depegs, as happened to Terra/Luna. Unslashed (https://app.unslashed.finance/cover) is supposed to kick in after fourteen days, I believe. We’re not quite there yet, it’s barely a week so far. But I’m sure with this kind of implied loss reserves, it’ll be fine…
https://mobile.twitter.com/CurveFinance/status/1416392630754...
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#35Earlier quoted context omitted.
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.
“There is a non-zero risk that the peg does not recover to 100%.”
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#36The last few weeks (months, really) has highlighted an incredible lack of discernment in the VC-verse wrt the thing we call web3. Now. I have no experience doing what YC does and don’t claim to, but the jig here was so transparent that the smallest drop of “street smart” should’ve been enough to set off some alarms. We’re approaching a point where being passed over for “culture fit” is a compliment. Hopefully the emb…
If they’re unlucky they lose $500k, which is nothing. If they’re lucky they get a Coinbase. Why not.
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#37The whole idea was to become a middleman to a ponzi scheme and charge a performance fee.
They described what they are doing in their documentation, but the core ethical problem here is that the only users that would use their service are those incapable of understanding how UST/Terra worked, because anyone capable of understanding would just deposit funds directly and get higher APR for the same risk! Extremely predatory.
UST fooled many ...not very bright people who genuinely didn't realize it's a ponzi scheme - but obviously smart and technically proficient founders of Stablegains' have no such excuse. Zero room for doubt - they fully knew it's certain to collapse eventually, banking on their legal terms to protect them from liability while privately profiting as long as it works.
Founders of Stablegains belong in prison and everything they own should be confiscated and divided among victims. Sadly they are probably safe - as knowing the inevitability of collapse they must have felt their legalese to be ironclad.
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#38YC has made some questionable bets in the last few years. Quantity over quality?
yes I think good remark. This will hurt their brand for sure. Quick money making as it seems
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#39They just raised $3 million last month too. I assume they might need some more. https://blog.stablegains.com/we-raised-3-million-and-are-hir...
Hopefully they didn't park the investors' money in Anchor Protocol!
Tbh they very well may have.
Didn’t think same kind of shit happen in the BTC crazy circa 2017?
Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers
#40The whole idea was to become a middleman to a ponzi scheme and charge a performance fee. They described what they are doing in their documentation, but the core ethical problem here is that the only users that would use their service are those incapable of understanding how UST/Terra worked, because anyone capable of understanding would just deposit funds directly and get higher APR for the same risk! Extremely preda…
I just wish the liability could be extended to enablers that is funders... Sometimes I think companies should not really be limited liability...