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We’re discontinuing the Stablegains service

blog.stablegains.com

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Re: We’re discontinuing the Stablegains service

#121

Post by gruez »

nrmitchi wrote: post #101
gruez wrote: post #91

Earlier quoted context omitted.

>Question though, do the founders here have any potential criminal liability from this whole situation (including apparently lying about what they were doing with their customers funds)? While they're not exactly forthcoming with the risks, their marketing pages[1] were also careful to not make any explicit claims of safety (eg. "your principal is protected", or "you won't lose money"). The most that they claimed wer…

> careful to not make any explicit claims of safety (eg. "your principal is protected", or "you won't lose money"). These are both explicit examples of explicit claims of safety that are still up on their documentation (at least as of 5 minutes ago) - "You will not lose your funds because all loans are 100% asset-backed." ( https://stablegains.zendesk.com/hc/en-us/articles/4402680425... ) - "Regardless if crypto mark…

Thanks for unearthing this. In light of this, I'll admit it looks pretty bad for them.

Re: We’re discontinuing the Stablegains service

#122

Post by Hamuko »

nrmitchi wrote: post #96
nrmitchi wrote: post #34

> While we have informed users that there are no absolute guarantees against risks I'm... uh.... fairly certain this was not the crux of their marketing which severly downplayed the underlying risk. There is also a huge spectrum between "we cannot guarantee that there is 0 risk" (which seems to be what the above sentence is saying), and "there exists a risk that all of your funds disappears in 24 hours". It seems lik…

Further little notes from their documentation that, lets just say, "downplay the risk": - "You will not lose your funds because all loans are 100% asset-backed." ( https://stablegains.zendesk.com/hc/en-us/articles/4402680425... ) - "Regardless if crypto markets are soaring or crashing, the value of assets under our management remains stable." ( https://stablegains.zendesk.com/hc/en-us/articles/4402687671... ) It's ki…

>How long do you expect users can earn such high yields?

>The basis for Stablegains' rate is Anchor Protocol's yield. At the time of writing, Anchor yield is set at 18% - 20% APY and expected to remain so for a long time.

>We expect the rates of open finance protocols to beat those of traditional finance for a very long time.

https://stablegains.zendesk.com/hc/en-us/articles/4402680471...

Re: We’re discontinuing the Stablegains service

#123

Post by JumpCrisscross »

capableweb wrote: post #52
Justsignedup wrote: post #24

people who bet early, made big money. people who came in on the hype lost everything. the definition of pyramid schemes. Oh well. We'll see, it might bounce back as these things do.

Oh, by that definition, even AAPL is a pyramid schema. How about we leave the definition for pyramid scheme where it's already at? > Pyramid scheme: making money based on recruiting an ever-increasing number of "investors." > Oh well. We'll see, it might bounce back as these things do. No, it won't. It won't regain the trust of the community and the project is dead in the water now, no way it'll recover from this.

> Pyramid scheme: making money based on recruiting an ever-increasing number of "investors."

This is correct. While looking into this for a friend I came across: "for a full year, you'll earn 0.5% APY on what each person you refer deposits" [1]. Still not a pyramid scheme, since 0.5% is a small fraction of the total yield paid out, but pyramidesque.

[1] https://stablegains.zendesk.com/hc/en-us/articles/4409440197...

Re: We’re discontinuing the Stablegains service

#124

Post by rvz »

gloryless wrote: post #30

It's pathetic that regulators haven't stopped this nonsense. These scams don't even last 6 months anymore, it's a joke

> It's pathetic that regulators haven't stopped this nonsense.

As a result of the ICO scams in 2017 for example the infamous Ethereum DAO hack, perhaps that is why at least in the US, the SEC banned unregistered ICOs [0]; more countries to follow.

They have done 'something' about it, but it is not going to 'completely' stop otherwise they would have 'totally' banned all of them, including even registering an ICO with the SEC.

I won't be surprised to see stable-coin regulations this year with only a few of them still surviving.

[0] https://www.whitecase.com/publications/alert/regulation-init...

Re: We’re discontinuing the Stablegains service

#125

Post by Nextgrid »

fakename wrote: post #17

So the options are to withdraw to USD at 5% value, or transfer the ust to another wallet to qualify for a "potential airdrop" but probably lose the 5% as ust goes to 0?

True, however at this point it’s not really up to StableGains - they are doing the right thing here (regardless of their initial - potentially false - advertising) of allowing you to withdraw your holdings and then be at the mercy of the market directly.

Re: We’re discontinuing the Stablegains service

#126

Post by SnowHill9902 »

JumpCrisscross wrote: post #46

If you are in the U.S. and lost money, please write to your state's Attorney General [1]. The company is Stablegains, Inc. and the people to name are Kamil Ryszkowski and Emil Rasmessen, co-founders and, I think, Board members. Copy Ken Paxton, Office of the Attorney General, P. O. Box 12548, Austin, Texas as well as his challenger George P. Bush at P. O. Box 26677, also in Austin. (Stablegains and its founders are i…

What should you write exactly?

Re: We’re discontinuing the Stablegains service

#129

Post by gruez »

Tao332 wrote: post #21
lupire wrote: post #14

Earlier quoted context omitted.

Terraform has $3B (ish, stores as Bitcoin) that they could use to try to buy back faith in their coin. Problem is, best they can do is reboot with a Bitcoin-collateralized coin. The whole Terra/Luna/Anchor "algorithmic stablecoin" had been exposed as a fraud or a fantasy, so such smaller fraction of suckers and scammers will buy in to that again, and everyone else might buy in to a Bitcoin backed stablecoin, but ther…

> Terraform has $3B (ish, stores as Bitcoin) that they could use to try to buy back faith in their coin. Had . It's gone.

What happened? Last I heard they transferred it to gemini but people weren't sure whether they actually sold it or not.

Re: We’re discontinuing the Stablegains service

#130

Post by nrmitchi »

Hamuko wrote: post #122
nrmitchi wrote: post #96

Earlier quoted context omitted.

Further little notes from their documentation that, lets just say, "downplay the risk": - "You will not lose your funds because all loans are 100% asset-backed." ( https://stablegains.zendesk.com/hc/en-us/articles/4402680425... ) - "Regardless if crypto markets are soaring or crashing, the value of assets under our management remains stable." ( https://stablegains.zendesk.com/hc/en-us/articles/4402687671... ) It's ki…

> How long do you expect users can earn such high yields? > The basis for Stablegains' rate is Anchor Protocol's yield. At the time of writing, Anchor yield is set at 18% - 20% APY and expected to remain so for a long time. > We expect the rates of open finance protocols to beat those of traditional finance for a very long time. https://stablegains.zendesk.com/hc/en-us/articles/4402680471...

Both of those were good to, but I didn't include them because both are either "expectations", or a reference to someone else's expectation/statement, and are not definitive statements.
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