Summary
A teenage boy created and released three memecoins, earning over $50,000 by selling his holdings before the price crashed (“soft rug pull”).
The backlash was swift, with the boy and his family doxed and facing threats from angry traders.
While the legality of such actions is unclear, the incident highlights the risks and ethical dilemmas in the unregulated memecoin market.
We truly are in a golden age of scams.
A “Gilded Age”, you might say
If the deregulation of cryptocurrencies happens in the US, it will get even worse except for the predators.
Tell me again how this nonsense will replace old fashioned “fiat currency” any day now.
No one has ever explained to me how crypto coins are not fiat currency considering they’re not backed by any commodities whatsoever.
What about if you take out inflation and offer transactions for zero fees while operating a network with little appetite for (electric) energy?
That would mean you’d never be left with dust amounts you can’t spend and no entity could debase your holdings by issuing more currency units.
Then the price would just be the result of supply and demand.
Of course that’s not what that teenager did or what the vast majority of cryptocurrencies do, but how it could and should be done.Inflation IS the result of supply and demand (and other market forces such as the velocity of money).
You would need a mechanism to control the value of the currency to prevent inflation. Maybe an institution that offers loans could achieve this by adjusting the interest rate.
It would have to be a government entity, you wouldn’t want this responsibility to be in the hands of anyone with a profit motive. Maybe some kind of reserve bank operated by a federal government. We could call it the Federal Reserve.
You’re righr. I wasn’t specific enough. I meant inflation of the supply, the currency units. Increasing the supply can cause loss of real purchase power aka inflation.
With a stable supply and only the forces of supply and demand in place, real purchase power loss or increase are possible, which means there can be inflation or deflation.
Wait I feel like I remember reading about stuff like this in the early days if stock trading, people making fake companies, selling stocks and running off, more stringent rules started being put in place in the 1920’s-30’s
Meme coin goes badly? How did I not see this coming?
Bitcoins should be used as god intended: buying prescription drugs from India. Most everything else is a circlejerk of stupid.
Is this really a thing? Do you have any recommendations?
This isn’t heavily controlled stuff. Antidepressants, heart medication, gi prescriptions, stuff insurance should cover but deductibles, yada yada. Sky Pharmacy.
“I bought snake oil from a very trustworthy travelling salesman. Turns out it was just piss with ink and when I turned around he had skipped town!”
Tale as old as time m8. Play stupid games, win stupid prizes.
Don’t hate the player, hate the game.
No regulations needed here, nope.
