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Solend seized $170M of user funds

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Re: Solend seized $170M of user funds

#101

Post by itronitron »

3a2d29 wrote: post #25
PragmaticPulp wrote: post #7

One of the themes in pro-crypto writings has been the idea that as long as you “do your own research” then the bad things won’t happen on your chosen cryptocurrency. The prevailing idea (among pro-crypto spaces) is that bad things only happen to other people who deserve them because they didn’t do the right research. Recently we’re seeing the bad things happen in more and more mainstream chains. Even famous NFT propo…

Not to be super “arm chair psychologist” about this, but I always thought the whole “you deserve it if you got scammed” mentality comes from the people that believe crypto will replace all modern finance. For crypto to replace modern finance, it needs to be better in every way (so it’s a total replacement). Decentralized currency is better for some things, worse for things like preventing scams. If modern finance pre…

From what I have read, crypto folk seem to claim primarily that the decentralized currency 'not be a scam' in contrast to a currency managed by a central bank. Whether or not the currency discourages or enables scams via the currency is a secondary concern. Of course, Solend's interference seems like something 'a central bank' might do.

Re: Solend seized $170M of user funds

#102

Post by filoleg »

charcircuit wrote: post #93
jacobedawson wrote: post #82

Earlier quoted context omitted.

Here's a new type of computer - it's exactly the same as your current computer, except it consumes 1/10th of the power... A replacement doesn't have to be better in every single facet.

Do you mean 10x the power?

Unless you value inefficiency and spending a lot of money on electricity, the answer is "no", the parent comment actually meant 1/10th power.

Re: Solend seized $170M of user funds

#103

Post by yieldcrv »

cuteboy19 wrote: post #91
RichardHeart wrote: post #69

Not your keys not your coins. Not your admin keys, not your coins.

Admin keys?

A lot of "decentralized finance" projects have a way for a centralized entity to control them. Often times an individual. And other times a multisignature address controlled by two of the same individual's addresses.

Users should be more discerning but are not.

Re: Solend seized $170M of user funds

#104

Post by threeseed »

foepys wrote: post #49

This is a fight between whales, nothing more. If the average "retail" coin holder thinks they have any influence, they are dead wrong. This is the cryptocurrency reality where the small man is overpowered by the bourgeoisie who own so much more capital that they only need to fear each other.

> This is a fight between whales, nothing more

It clearly shows you that even in crypto the rich and powerful can manipulate the rules.

Re: Solend seized $170M of user funds

#105

Post by cowtools »

NikolaNovak wrote: post #97
cowtools wrote: post #61

Earlier quoted context omitted.

>The undeniable fact is that regulations will be put in place for crypto why is this so undeniable? I would think well-implemented cryptocurrencies would be fairly regulation resistant

Xkcd of course had it right even back when "crypto" meant something else :) https://xkcd.com/538/ Regulation and law indeed may not be able to beat crypto technologically. They don't need to. Humans are the weak squishy link in the chain. I don't need a supercomputer to crunch down your crypto, I need a warrant for your arrest or subpoena to ask for all your documents. I can outlaw your ability to operate without log…

Go ahead, unlock your hard drives then. Disable HTTPS, it makes no difference right? The government can just do evil maid attacks while you're asleep or rubber-hose whatever CA you're using anyways. While you're at it, why don't you leave the door to your house unlocked? The government can just kick it in whenever they want, no biggie, right?

Strong cryptography still remains a formidable barrier for law enforcement, regardless of what pessimists like munroe would have you think.

Re: Solend seized $170M of user funds

#106

Post by colinsane »

rvz wrote: post #58
3a2d29 wrote: post #25

Earlier quoted context omitted.

Not to be super “arm chair psychologist” about this, but I always thought the whole “you deserve it if you got scammed” mentality comes from the people that believe crypto will replace all modern finance. For crypto to replace modern finance, it needs to be better in every way (so it’s a total replacement). Decentralized currency is better for some things, worse for things like preventing scams. If modern finance pre…

The pro-crypto folks have created the delusion that 'crypto will replace all modern finance' and they will quickly realise that regulations will wipe out the majority of tokens and projects unable to comply with them; and a remaining few of them existing and surviving. It also means the anti-crypto folks will also realise that destroying 'all of them' is another delusion that activists like the free software foundati…

> they will quickly realise that regulations will wipe out the majority of tokens and projects unable to comply with them

might this be part of the DYOR reasoning? some gut-level reaction that “unless we encourage every individual user to take responsibility, then most of those users will welcome 3rd party (govt/bureaucratic) regulators”?

i don’t know that this is wholly delusional, either — i think it’s just a difficult culture to preserve during massive growth. but look at any mid/large crypto project and they usually show off their audits. audits which they willingly paid for because enough users care about it that demonstrating your system is hardened actually has positive ROI. it happens enough that distinct auditors each have their own reputation (oh, X audited notable project Y => their audit on new project Z probably means something). this whole auditing system is in some very real sense a form of “self-regulation” — but the whole thing is predicated on DYOR.

Re: Solend seized $170M of user funds

#107

Post by threeseed »

melony wrote: post #75
ChuckMcM wrote: post #10

And @patio11's take : https://twitter.com/patio11/status/1538601104098852865 which is illuminating as well. The whole "crypto is speed running through the finance playbook" theme is fascinating to me.

So what is the downside of crypto? All the furor seems to be about how the whale's funds were seized. But there is no evidence to the contrary that this won't happen in day to day Wall Street banking. From patio11's > When we say “crypto is speedrunning learning what finance already knows” sometimes it is about attacks but sometimes it is about quotidian topics like “Can you adversarially blow your clients out of tra…

> So what is the downside of crypto?

* Ordinary people being financially ruined along the journey.

* Environment being harmed by pointless mining.

* Investment money being wasted on companies that are simply cloning TradFi.

Re: Solend seized $170M of user funds

#108

Post by SgtBastard »

melony wrote: post #75
ChuckMcM wrote: post #10

And @patio11's take : https://twitter.com/patio11/status/1538601104098852865 which is illuminating as well. The whole "crypto is speed running through the finance playbook" theme is fascinating to me.

So what is the downside of crypto? All the furor seems to be about how the whale's funds were seized. But there is no evidence to the contrary that this won't happen in day to day Wall Street banking. From patio11's > When we say “crypto is speedrunning learning what finance already knows” sometimes it is about attacks but sometimes it is about quotidian topics like “Can you adversarially blow your clients out of tra…

>So what’s the downside of crypto?

Ecologic vandalism, for one.

Re: Solend seized $170M of user funds

#110

Post by edf13 »

Just to clarify - this is Solana, which is and always has been big vc funded and controlled.

It has always been semi-centralised… but has big funds for pr.

It isn’t bitcoin or even Eth… it isn’t decentralised

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