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We’re discontinuing the Stablegains service

blog.stablegains.com

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Re: We’re discontinuing the Stablegains service

#91

Post by gruez »

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…

>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 were "stable" returns. For good measure there's also a disclaimer mentioning the risks.

>There is a range of safeguards in place to help secure your deposits, however holding and depositing stablecoins with Stablegains and third party lending platforms still carries significant risk. Please carefully read our Terms of Use and Risk disclosures in our Learning Center before making a deposit. Any deposit with Stablegains and third party lending platforms is entirely your responsibility. You understand that your principal is at risk.

[1] https://web.archive.org/web/20220108232821/https://www.stabl...

Re: We’re discontinuing the Stablegains service

#93

Post by rspeele »

bmm6o wrote: post #32

Obviously I'm a little out of the loop, but what is the "attack" they talk about in the new plan? I thought the coin just death spiraled.

Terra: you can always exchange 1 UST for $1 worth of Luna via this smart contract if you'd like to cash out.

Users: OK, don't mind if I do.

Terra: help we're under attack.

Re: We’re discontinuing the Stablegains service

#94

Post by t-3 »

gruez wrote: post #81
chmod775 wrote: post #69

Earlier quoted context omitted.

Creating a public permanent record of having fallen for the latest crypto shitcoin will likely be too embarrassing for some. But then again I'm having trouble relating. Successful "crypto startups" hardly exist, and most of those are selling shovels to suckers. What was the expectation here?

Isn't it already "a public permanent record" because it's already in the news?

A blockchain is already a public permanent record in the first place.

Re: We’re discontinuing the Stablegains service

#95

Post by tyrfing »

axiosgunnar wrote: post #2

This is huge news, isnt it? A YC startup going bankrupt because of the Terra collapse?

Interestingly, they removed their prominent YC branding very recently after the collapse. Compare:

https://twitter.com/stablegains/status/1523874916206059525

https://web.archive.org/web/20220510035811/https://twitter.c...

Re: We’re discontinuing the Stablegains service

#96

Post by nrmitchi »

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 kind of shocking really that these statements are still up give how many of their other docs have been editted in the last 10 days.

---

Edit: u/ushakov is the hero of the hour for archiving those pages (https://archive.ph/O2lZV, https://archive.ph/ItERp)

Re: We’re discontinuing the Stablegains service

#97

Post by Terry_Roll »

perihelions wrote: post #41
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…

This was their old marketing: https://news.ycombinator.com/item?id=31431915 - "15% interest. No surprises."

Dont rely on any websites & webpages existing like this link.

I can show you links where even the Wayback machine has removed content, most people will know how Google Cache has removed content, so print all copies and have hard copies safely stored away where they cant be destroyed. Houses will be broken into in order to destroy evidence, I know I've had it done to me!

This may be your only chance to out the criminals that run the world!

Re: We’re discontinuing the Stablegains service

#98

Post by Jasper_ »

xvector wrote: post #70
Jasper_ wrote: post #35

Earlier quoted context omitted.

Anybody promising low-risk, high-return investment is a fraud. After all, why would they have to convince you to invest money if they could just do it themselves?

> After all, why would they have to convince you to invest money if they could just do it themselves? Capital. Taking a 5% cut of billions of dollars is going to be worth a lot more than 20% of whatever tiny amount of capital you are able to muster yourself.

If you're so sure of your low-risk, high-reward strategy, get a bank loan. And then once you make more money, get an even bigger bank loan.

There are ways of getting capital that don't involve the public's money.

Re: We’re discontinuing the Stablegains service

#99

Post by cmeacham98 »

chx wrote: post #62
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

All crypto is a scam and it's so simple to see, it's astonishing anyone fell for this. Look. Imagine an otherwise empty room with a table and a few chairs. A couple people come in with some money in their pockets and cards. They play a few round of a card game, some lose, some win. When they leave, the room as it was before so it is crystal clear the sum of their money couldn't change. Some won, some lost but overall…

> Imagine an otherwise empty room with a table and a few chairs. A couple people come in with some money in their pockets and cards. They play a few round of a card game, some lose, some win. When they leave, the room as it was before so it is crystal clear the sum of their money couldn't change. Some won, some lost but overall the change is zero. This still doesn't change if, for convenience, during the game, they use plastic chips to count wins and losses and at the end they exchange it for money.

Does this not describe CC fees/taxes/online marketplaces/etc? Or is your argument all those are scams as well?

I agree crypto projects are generally a scam but I fully disagree the reason for that is transaction fees (which I assume is what you're alluding to here as the "small cut").

Re: We’re discontinuing the Stablegains service

#100

Post by jmyeet »

What's funny about this is that I can recall discussions here and elsewhere from only a few months ago questioning the "guaranteed" super-high returns. I forget who said this but someone awhile ago said in finance said that if someone is promising you consistent above-market returns it's either a scam or there is unknown or undisclosed risk.

And the Crypto Andys were all like "you just don't understand DeFi!" to which the retort is "No, you just don't understand finance".

Finance is the way it is for many reasons. There are thousands of years of lessons that have made the system the way it is. I get the innovator mentality of sweeping away the old but there seems to be a fine line between innovation and ignorance.

I'm just sitting on the sidelines watching people relearn all the lessons of finance the hard way, some because they think they understand finance because because they understand merkle trees and consensus protocols but really most just want to get rich quick.

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