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The collapse of the IRON stable coin

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Re: The collapse of the IRON stable coin

#81

Post by exdsq »

JohnWhigham wrote: post #54
gerikson wrote: post #2

> The developers seem to have been earnest in their attempt to create a new kind of stablecoin , one that was only partially collateralized by a “real” stablecoin. This space is a giant house of cards.

Seriously. I posit that many of the programmers in the field have no financial background whatsoever, on top of whatever shaky software background they may also have (especially if they went to a bootcamp). Just hilarious to watch.

I've worked in the space for a few years and can say it's been the opposite experience for me. Had the chance of working on a Haskell project with the original creators of Haskell, being taught QuickCheck by the creator of QuickCheck, testing economic ideas created by professors of Economics at top universities, and sponsored entire compilers and languages to help ensure the software was as solid as possible. One of my favourite tutorials was when we had Leslie Lamport come in to give us a talk on TLA+. There is so much money in the space you can have absolutely insane teams.

Re: The collapse of the IRON stable coin

#82

Post by xqk8 »

boomer_joe wrote: post #23

>Non-collateralized stablecoins read: "ponzi scheme". This is pretty funny.

A Ponzi scheme requires a central actor like Charles Ponzi, you're quoting a description of a "purely algorithmic stablecoin" which implies no central actor to channel new investors' money to old, no central actor to defraud the new investors and by telling them they've gained money when they haven't.

I guess they are comparable in the way that they both require a inflow of capital, is that what you're saying? That would make them similar to pyramid schemes and startups too. "Ponzi scheme" is more specific than "scheme."

Re: The collapse of the IRON stable coin

#83

Post by ceejayoz »

kevincox wrote: post #79
ceejayoz wrote: post #36

Earlier quoted context omitted.

I think the point is more that if you owe $200M to someone, a court is unlikely to accept "it's irreversibly stuck in a smart contract" as an out.

Sure, but if you both sign a legal contract to obey the outcome of the smart contract then no one owes anything, because the smart contract says that the $200M is gone. Obviously this doesn't allow you get around laws such as warranties but I don't see why it can't be used if everyone agrees to it.

In some cases, perhaps, but not all.

Fraud, for example, isn't legal even if you have a cleverly crafted contract that uses wording tricks to technically be true.

I would expect a court to take a dim view of a smart contract that has an obfuscated, non-obvious mechanism for someone to siphon off all the money in an undisclosed fashion. "Code is law", but so's "you can't defraud people".

Re: The collapse of the IRON stable coin

#84

Post by Semaphor »

tluyben2 wrote: post #73
gruez wrote: post #9

This is good for USDC right? Because it's $262 million that they don't have to pay back? >EDIT: I’ve since learned that the developer(s?) behind this are already the laughing stock of the DeFi community, having wrecked each of their 3 previous projects (now 4) — though this might be their biggest hit yet And people poured $262 million into this?

As I get older, I do not understand how known scammers, especially the ones that raise millions over and over, get support time and time again. If not in jail, why do they still get jobs. I know some who just told me in my face that they were scammers of millions (or simply were happy screwing people even with viable ways out) and they raise money again, screw people again etc. People do use Google right? Due diligen…

I can recommend checking out Reddit’s /r/cryptocurrency and branching out to smaller altcoint subreddits. Read the comments. There are thousands of people just looking for that one weird trick to get rich.

As a sidenote, I almost always got out just before a crash by when I was playing with altcoins by waiting for people to get over the top enthusiastic in their subreddit and then selling everything. Might as well have been luck though, so don’t try it ;)

Re: The collapse of the IRON stable coin

#85

Post by hbosch »

sashimi-houdini wrote: post #8

I wrote Skepticoin as a serious parody of Bitcoin. Articles like these about the "state of the art" of cryptocurrency make me wonder: would a parody of a more "modern" cryptocurrency even be recognizable as such?

Dogecoin literally started as a parody.

Re: The collapse of the IRON stable coin

#86

Post by ramesh31 »

tluyben2 wrote: post #73
gruez wrote: post #9

This is good for USDC right? Because it's $262 million that they don't have to pay back? >EDIT: I’ve since learned that the developer(s?) behind this are already the laughing stock of the DeFi community, having wrecked each of their 3 previous projects (now 4) — though this might be their biggest hit yet And people poured $262 million into this?

As I get older, I do not understand how known scammers, especially the ones that raise millions over and over, get support time and time again. If not in jail, why do they still get jobs. I know some who just told me in my face that they were scammers of millions (or simply were happy screwing people even with viable ways out) and they raise money again, screw people again etc. People do use Google right? Due diligen…

>As I get older, I do not understand how known scammers, especially the ones that raise millions over and over, get support time and time again.

Con artists are good at what they do. People are a thousand times easier to hack than a database server. And there's no security patches for human emotion; we are full of 10,000 year old zero days.

Re: The collapse of the IRON stable coin

#87

Post by tluyben2 »

runbathtime wrote: post #57

If a code error that was made that was supposedly 'dumb' wasn't caught that tells me the people behind this acted recklessly. This code error being described wasn't just dumb, it was catastrophic- locking up all the collateral. Is this collateral locked up forever, what would make Titan trade above 0? The code wasn't even audited, suggesting no care by the devs before release. Doing money transmission without a licen…

> Doing money transmission without a license is criminal offense

Who did the transaction though? These people? The eth network? Was it considered money? And where? Do these people live there who did the transaction? I am not saying you are wrong but this 'war on X' attitude never was a great idea, it also does not work as it is not a singular entity that is to blame. It is a vast network spanning countries.

Re: The collapse of the IRON stable coin

#88

Post by ramesh31 »

Semaphor wrote: post #84
tluyben2 wrote: post #73

Earlier quoted context omitted.

As I get older, I do not understand how known scammers, especially the ones that raise millions over and over, get support time and time again. If not in jail, why do they still get jobs. I know some who just told me in my face that they were scammers of millions (or simply were happy screwing people even with viable ways out) and they raise money again, screw people again etc. People do use Google right? Due diligen…

I can recommend checking out Reddit’s /r/cryptocurrency and branching out to smaller altcoint subreddits. Read the comments. There are thousands of people just looking for that one weird trick to get rich. As a sidenote, I almost always got out just before a crash by when I was playing with altcoins by waiting for people to get over the top enthusiastic in their subreddit and then selling everything. Might as well ha…

>There are thousands of people just looking for that one weird trick to get rich.

Increasingly I think they're the smart ones. I'm sitting here working my butt off for a few thousand dollars a month, while these guys raised hundreds of millions of dollars without even being able to grammar check a sentence. Who's the real sucker?

Re: The collapse of the IRON stable coin

#89

Post by tluyben2 »

ramesh31 wrote: post #86
tluyben2 wrote: post #73

Earlier quoted context omitted.

As I get older, I do not understand how known scammers, especially the ones that raise millions over and over, get support time and time again. If not in jail, why do they still get jobs. I know some who just told me in my face that they were scammers of millions (or simply were happy screwing people even with viable ways out) and they raise money again, screw people again etc. People do use Google right? Due diligen…

>As I get older, I do not understand how known scammers, especially the ones that raise millions over and over, get support time and time again. Con artists are good at what they do. People are a thousand times easier to hack than a database server. And there's no security patches for human emotion; we are full of 10,000 year old zero days.

Agreed, but if you are a VC you do basic DD right? And if there is a reddit group calling your new star CEO a scammer, you might check a bit? But yes, full agree.

Re: The collapse of the IRON stable coin

#90

Post by Semaphor »

ramesh31 wrote: post #88
Semaphor wrote: post #84

Earlier quoted context omitted.

I can recommend checking out Reddit’s /r/cryptocurrency and branching out to smaller altcoint subreddits. Read the comments. There are thousands of people just looking for that one weird trick to get rich. As a sidenote, I almost always got out just before a crash by when I was playing with altcoins by waiting for people to get over the top enthusiastic in their subreddit and then selling everything. Might as well ha…

>There are thousands of people just looking for that one weird trick to get rich. Increasingly I think they're the smart ones. I'm sitting here working my butt off for a few thousand dollars a month, while these guys raised hundreds of millions of dollars without even being able to grammar check a sentence. Who's the real sucker?

I was talking about the users giving them money, not the scammers/con artists.
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