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

Post by nradov » Thu, May 19, 2022, 1:54 PM UTC

NelsonMinar wrote: post #234

okwubodu wrote: post #30

The 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…

The participation of big-name Silicon Valley VC in some obvious financial frauds is really disappointing to me.

Post by nikanj » Thu, May 19, 2022, 1:59 PM UTC

chii wrote: post #59

KingOfCoders wrote: post #15

"Stablegains makes earning with DeFi simple and safe for consumers and businesses alike."

There's no such thing as a free lunch, and you cannot earn above inflation returns without taking on risk. Even money market funds, which is what stablecoins are similar to for fiat currencies, are not without risk.

Post by shkkmo » Thu, May 19, 2022, 2:00 PM UTC

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…

Post by shkkmo » Thu, May 19, 2022, 2:03 PM UTC

paulgb wrote: post #229

adrr wrote: post #212

Earlier quoted context omitted.

So how is the 20% interest created? Excuse my ignorance on crypto. I don’t understand how UST can drop 90% when I assume it required some sort payment of some other currency/coins to get mint them. I heard it was tens billions of UST was minted. So what happened to these coins? Were they used to pay out the interest?

To be clear, I was interpreting josu's “these platforms” as the layers on top of UST, not inclusive of UST itself. He also mentions that they might be ”front ends for a ponzi” which is basically where I fall on this. (So, to your question, the answer would be that the yields in fact do come from a ponzi mechanic) This is a pretty meaningless distinction if you invested in them, because you were exposed to the same me…

Post by frob » Thu, May 19, 2022, 2:09 PM UTC

eis wrote: post #266

Another negative story about a YC company which has risen to the front page of HN and then seems to be getting a lot of pressure to get ranked down. It has more points and is fresher then a handful of other stories on the frontpage but ranks lower and is falling quickly. And when mentioned in the past, the reason often is the invisible anti-flamewar or similar features. What is it this time? Elon needs to buy HN and…