[thr0wawayf00]

> The devil is in the details and honestly Terra was run incompetently and for greed rather than as a true professional endeavor.

If the market can't discern honest players from the criminals, then how will an honest attempt at these coins ever succeed? The problem is that we don't know that they're criminals until they've gone under, and there's no due diligence or oversight to verify that they're legit because that would be antithetical to the entire system.

It would be like continuing to drop a little money in every single altcoin that hits r/cryptomoonshots because at least one of those people has to be honest, right?

If being trustless is central to the technology, then we have no idea if what we're putting our money into is legit or not and that's a fundamental problem with this stuff. The system rewards bad behavior, plain and simple. As long as that's true, I don't see how honest people gain enough influence to actually achieve the vision that the community realizes.

[wmf]

If the market can't discern honest players from the criminals, then how will an honest attempt at these coins ever succeed?

Yeah, this is a huge problem for crypto in general.

The problem is that we don't know that they're criminals until they've gone under, and there's no due diligence or oversight to verify that they're legit

At least one third party analyzed Terra's algorithm and predicted the collapse around 6 months before it happened.

[solveit]

I mean, people were screaming that the Terra ecosystem was going to collapse since forever. It's just that different people invested in it anyway. There's nothing impossible about verifying the legitimacy of any endeavour, people just don't do it.

Honest people will do honest work and succeed or fail on their own terms, the fact that there are a hundred scams running adjacent to the honest projects is unfortunate and very disruptive but doesn't actually fundamentally block honest work.

[majormajor]

People have been screaming about that for every part of crypto.

How is the non-crypto-expert supposed to tell that the Terra and DOGE hate is real but the BTC and ETH hate isn't? Or that the ETH hate also is, and it's only the BTC hate that you should ignore? Or any of a number of different permutations?

Isn't the adoption of the honest work blocked by this inability to differentiate without lots of hours of research?

[bhouston]

Much of crypto, such as NFTs, Ethereum and Bitcoin, is based on consensual reality that these tokens have value because there are no underlying assets. As long as people believe they are a store of value they essentially are. Until at some point people lose faith and then they do not hold value.

In fact stable coins in theory are one of the least scammy parts because they have a real value as long as there are not outright scams (of which many of them are.)

[addicted]

In practice, stablecoins will plummet to 0 if a central bank decides to offer a dollarcoin or a yuancoin or a Eurocoin.

[bhouston]

There is a Yuancoin already btw. And there probably should also be an official US and Euro digital coin as well. But I do not think these alternatives will go to zero, rather they will act like ETFs, as they sort of do now. If they are collateralized properly, they should be fine.

[gafferongames]

Pro-tip: They're all scams

[wmf]

a hundred scams running adjacent to the honest projects ... doesn't actually fundamentally block honest work

People expect the honest projects to give the same rate of return as frauds which is impossible.