Rug sellers galore
Rugged, is a term being used to refer to when your investment suddenly goes to zero because of one of below reasons:
- original team scammed, took the money & bolted, or
- someone found a mistake in code, took advantage of it and ran away, or
- mixture of both
Mark Cuban seems to have gotten too greedy with Iron Finance. He thought an algorithmic stablecoin means that it will be stable. The hint is in the word algorithmic. If a component of an index changes; it impacts the index. However, greed lets you forget such details. He apparently wasn't impressed enough after losing money and now wishes regulators to regulate the stablecoins. Don't believe that will be an easy discussion. Truthfully personally I only noticed this project when he started complaining!
musings:
I have been interested in reading some of these codes and indeed if you pay attention some bugs are pretty obvious and definitely enticing when you see you could make $10m just by running a few small commands. However, in contrast to media's banter that crypto scams are untraceable; in reality there is no shortage of data and skillsets which will most likely get you identified, blacklisted and reported to authorities within space of hours no matter the jurisdiction / country.
In other news; ETH's EIP-1559 is finally on testnet. There are 3 testnets to go through. Ropsten, Goerli, Rinkeby respectively. These are independent blockchains (or environments). July 7th is the expected to be the last testnet release. After that time it will be determined when to release on mainnet of ETH.
Lastly, too many people are still hoping for a 2013 double bubble...i.e. this is the bottom on BTC this weekend. I think I should keep an eye on the interest rate on BTC being offered for such a scenario. The 60k-ish top was few weeks after the spike in interest rates on USDT/USDC. Moreover, in 2017 there was a 25 bps increase by the fed around September (if my chart + math is correct) but BTC still more than doubled in Q4.....so as always the narrative of BTC is never constant.
Interesting Reads / Listens:
Arthur as always has written stylishly what I wanted to say last week but was unsure how to word it. Its concerning talk of leverage in crypto system and what liquidations means comparatively to traditional finance. Since I cannot do justice to it in a summary so here is your weekend read.
Arthur Hayes
