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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

#191

Post by IMTDb »

kgwgk wrote: post #188
josu wrote: post #94

Earlier quoted context omitted.

I publicly called out LUNA/UST on Twitter a few times a few months before the collapse [0] [1]. Just stating this so it's clear that I don't have any interest defending them. That being said, calling these platforms "ponzis" isn't correct, the most you can say is that they were front ends for a ponzi. It would be like setting up a front-end to receive investments, and then depositing the money with Madoff. I'm not sa…

It wasn’t so obvious for some people… https://www.hbs.edu/faculty/Pages/profile.aspx?facId=697248 https://medium.com/terra-money/have-you-met-marco-216ca2a8b9... https://assets.website-files.com/611153e7af981472d8da199c/61... https://cdck-file-uploads-global.s3.dualstack.us-west-2.amaz... Why did you decide to join Terra? I thought Terra provided the perfect environment to apply what I learned in my research. Ensurin…

Those 3 reasons can be summarised as : "We are a bunch of excited 20yo who think they know better than everyone else and we have received pinky swear promises from shady asian websites, so we are definitely going to be rich, trust us ! xoxo"

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#192

Post by drawingthesun »

Surely the fact that they are changing the details about their terms/agreements now after they have lost it all - will cause a longer jail sentence for them? This has gone from reckless to actual purposeful deceit and manipulation

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#193

Post by Khoth »

nootropicat wrote: post #187
Khoth wrote: post #130

Earlier quoted context omitted.

Why were people willing to pay a three digit APR yield to borrow assets then just keep those assets doing nothing at all?

Nobody paid that in borrowing, that APR was generated by minting new tokens that could be sold to someone else.

Isn't that precisely a ponzi scheme?

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#194

Post by nootropicat »

Khoth wrote: post #193
nootropicat wrote: post #187

Earlier quoted context omitted.

Nobody paid that in borrowing, that APR was generated by minting new tokens that could be sold to someone else.

Isn't that precisely a ponzi scheme?

Generated tokens were different than what you had to deposit to get them. Deposited funds were (almost always) completely safe.

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#195

Post by MrMan »

monkey_monkey wrote: post #52
okwubodu wrote: post #46

Earlier quoted context omitted.

$42 million of real people’s money was lost. That’s a net negative to society whether or not it shows up on a balance sheet.

Sure but as long as they (the VC) are shielded from liability, it's not their problem. Society is something other folk can worry about. And if things get really bad, then a quick essay on lessons learnt, we should all move on, etc.

yeh I doing think most of these people believe in something called society

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#196

Post by gzer0 »

> stablegain is keeping the post de-peg UST airdrop for themselves and anyone who tries to withdraw to get the airdrop is forced to sign a waiver saying they're not liable for any losses.

Is this even enforceable? This is a contract agreement under duress. You can't absolve yourself just by saying these things; their terms do not supersede the law of the land.

Elements of economic duress

  * - Wrongful or improper threat.
  * - No reasonable alternative.
  * - The other party caused the financial distress.

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#197

Post by shigawire »

puranjay wrote: post #163
hardwaresofton wrote: post #127

Earlier quoted context omitted.

> As someone who went heavy into crypto/web3, it does pain me to admit that there really are no use cases besides making money. Which isn’t a bad use case by itself, but after using practically hundreds of protocols and projects, there’s not a single one I’d use if there was no prospect of making money off of it. My dApp usage has cooled off almost completely. And all data shows that this is true for most others as w…

The one thing that still makes me excited for this tech is web wallets and being able to pay/send money with them. If they are widely adopted, and a safe stablecoin (maybe even a CBDC) becomes the defacto transacting currency with quick on/off ramps, it would really change the way we pay for things online. Like buying a monthly subscription for a tool like, say, Icy.tools, is so much faster when you can pay directly…

Dumb question but what's the user experience difference between a browser wallet and saving a credit card in a password manager?

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#198

Post by MrMan »

antisthenes wrote: post #32
m00dy wrote: post #21

If 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.

risk premium arises from supply and demand in markets typically with some kind of quoting system. free money out of nowhere isnt really "risk premium" in that sense.

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#199

Post by daveed »

xtracto wrote: post #155

This made me think... back in 2012, a startup called Kueski (now a very successful BNPL in Mexico) applied for YC (twice in 2 years). The founders were rejected, even though the business model was sound and the economics were pretty well laid out (I know the CEO and ge is a really meticulous person). The reason YC gave for the rejection was that Mexico was an unknown market, and they felt lending in there was too ris…

FWIW YC has changed over the years, both with different partners and a changing startup ecosystem. Geo-based feedback 10 years ago probably isn't relevant now.

Re: YC W22 Stablegains is being sued for losing $42M in funds from 4878 customers

#200

Post by gzer0 »

Quick comparison between archive.org March 27th snapshot

27 March 2022 > There are no lock-up periods. Withdraw your funds any time and keep the interest you earned.

18 May 2022 > There are no long-term lock-up periods.

These guys are going under.

[1] https://web.archive.org/web/20220308041252/https://www.stabl...

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