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The relay market powering token resellers and fraud

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Re: The relay market powering token resellers and fraud

#82
post #54
post #43

How do the users know they're getting what they're paying for? I disabled automatic downgrading/rerouting because it sometimes takes me a second to tell when the answer came from a different model than I wanted. You could easily sell Opus as Fable for a good while.

You can't, it's all reputation based. Similar to whether drug users don't really know what they got were diluted or not.

At most big festivals there is free drug testing by harm reduction charities. Not that they'll test you for drugs, but they'll test your drugs to make sure they are what you think they are.

At Fusion Festival, I saw a big bulletin board completely covered in notices of "we tested this pill, here's a photo, here's what they thought was in it, here's what was actually in it"

They also spelled the name of the charity wrong on all the maps, so that's nice.

Re: The relay market powering token resellers and fraud

#83

One aspect that seems to be missing is the abuse of the free credits provided for new companies by AWS, Azure, and other providers. I know of a friend's company in India who purchased inference, at 4% of the actual price and states that it gave him an unbeatable competitive edge in their large running video influence pipelines. Any new competitors could not offer their pricing at all. Primarily that operated because…

A bit like setting up a supermarket that just sells another competing supermarket's "free fruit for kids" fruit.

Re: The relay market powering token resellers and fraud

#84
post #35

I spent years working on financial integrity at a large ads company and this isn't novel at all! The same resale markets are at play for the last generation of internet giant's products. Highly sophisticated actors, able to cobble together impressions through abuse of the billing systems, stolen financial instruments, taken over accounts, etc, create massive markets of discounted impressions for resale. It was very i…

Yes, and I'm reminded of Bitcoin miners relocating for subsidized electricity or even stealing it outright.

Re: The relay market powering token resellers and fraud

#85

It's the same fundamental problem as "ticket touting" for popular events - if you sell something that's in demand at a price that's far lower than the clearing price of the market, you're creating a juicy arbitrage opportunity that sooner or later somebody is going to try and exploit

Yeah but those tickets are never a loss leader. So it feels different.

This is more like sharing Argentinan $2/m Google Premium subscriptions via a load balancer.

Re: The relay market powering token resellers and fraud

#86
post #58

the way i see it there are 3 types of resellers. the ones using fake credit cards to rack up costs and then cancel the card are doing actual fraud. then you got mass free trial abuse which is more of a gray area and i would say its still wrong. but if you sign up for a subscription, pay for it and resell your monthly tokens thats not at all unethical, even if its breaking their terms and costing the provider money. i…

Selling your sub tokens is against ToS and somewhat like sharing your gym pass.

Re: The relay market powering token resellers and fraud

#87
post #78

Earlier quoted context omitted.

> some small company realizes they dont really use their cars that much so they rent them out again for 3 days a week to get some extra cash. is that fraud? Most likely, yes. There's a common fallacy that once you pay someone for a service, you are free to do whatever you want with that service. In the case of the rental car, the contract the company entered into would prohibit reselling the services and limit who ca…

Breach of contract isn't fraud though

Not every breach of contract is fraud, but signing a contract when you never intended to fulfill your side of the bargain is. For example, if someone signs a contract with a seller, pays them, and the seller disappears, they were defrauded. Or agreeing not to resell something and then doing it anyway.

Re: The relay market powering token resellers and fraud

#88

The real problem is subscription models. Businesses want recurring revenue so they try to game the ratio of fixed subscription prices to COGS but it's always a game and so whoever can figure out the upside for the company can figure out the complementary upside for themselves. How would one even word a bulletproof subscription contract for agentic tokens, anyway? You can't forbid automation because sub-agents are aut…

Subscription models are fine if profitable individually. It then is an automated token allocation.

The problem is loss making subscription as a marketing tool. But if you do loss leaders that be the risk you take.

Re: The relay market powering token resellers and fraud

#90

One aspect that seems to be missing is the abuse of the free credits provided for new companies by AWS, Azure, and other providers. I know of a friend's company in India who purchased inference, at 4% of the actual price and states that it gave him an unbeatable competitive edge in their large running video influence pipelines. Any new competitors could not offer their pricing at all. Primarily that operated because…

I should have added that I ran my first startup in India for 8 years before moving to the states, that's why I have an insider view.
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