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by ruytlm 3085 days ago
Pump and dump schemes, among others, are a good example of why unregulated does not necessarily mean good.
3 comments

Agreed, I think that's my favorite lesson from the crypto experiment. Sure there are people who use regulation as a gatekeeping function, or as a way to magnify their power, but regulations really do exist for the good of the people.
It’s a bit like finding a piece of code that does something crazy.

If you ask around, there could be a really good reason for it.

I don’t think we’re going to have a usable crypto currency until economists get involved, or we simply relearn all the lessons we’ve learnt to date.

Yes, crypto is not complete until there are synthetic CDOs!
CDOs are in the research phase currently: https://ethresear.ch/t/collateralized-debt-obligations-for-i...
Now we at least have futures market, which is a progress.
You can do CDOs in Ethereum today if you want.
"Hedge fund schemes, among others, are a good example of why regulated does not necessarily mean good."

One extreme negative, or extreme positive, derivative of a view does not condemn nor justify it. You need to consider the merits as a whole, not with piecemeal bias confirmation or condemnation.

I guess. I mean the regulated stock market has dark pools and super fast algorithms jumping in front of people's trades stealing from them.

I actually feel like the playing field is more uneven between individuals and firms in the regulated stock market vs the btc exchanges.

I also think the bitcoin exchanges are backroom dealing and insider trading, but I feel like they are less sophisticated vs the "legal" theft that is taking place on wall street.

I mean bitcoin exchanges are certainly the wild west, but I honestly don't care if people want to run pump and dumps on unsophisticated investors. That is something you can pretty easily defend against by doing your own research. There are far more nefarious things going on on both bitcoin exchanges and the real stock market.

> I actually feel like the playing field is more uneven between individuals and firms in the regulated stock market vs the btc exchanges.

This is definitely true. I first got into bitcoin as a way to do algotrading on an exchange without having to navigate whatever processes are required in order to be allowed to do so in "real" markets.

I agree. People who chase whatever is going up deserve to lose their shirt at least once.