The "big lie" behind altcoins
Binance, one of the largest cryptocurrency exchanges by volume, has listed a coin with known vulernabilities, which allowed attackers to mint an unknown number of excess coins:
$BCN hit 10000 sats on @binance and is still trading at ~1200. That's a $20-billion marketcap-- on the supply that we know exists! Unlimited supply could have been printed with the cryptonight bug found by a Monero dev in 2017 https://t.co/wtzze4dtv9— notsofast (@notsofast) May 8, 2018
... For understandable reasons, the narrative around bitcoin alternatives is becoming more cynical:
"This is crypto‘s Big Lie. And it’s seductive. You too can get rich like venture capitalists (though consider a higher bar since you don’t get management fees on your crypto bets)."
Most alt-coins are so illiquid that their price movements are random noise.— Vijay Boyapati (@real_vijay) May 7, 2018
Let's be real: trading these alts is just a legalized form of gambling. The rake is the trading fee of the exchange.
Exchanges like Binance are modern day casinos.
VCs that invested in ICOs & law firms that gave legal opinions saying ICOs are not securities are arguably in defensive mode. VCs want to avoid lawsuits from LPs. Law firms from ICO founders. They want SEC to issue a blanket waiver because "law was unclear" & not a security. https://t.co/WzaFkSx5vm— Yang Ventures⚡ (@YangVentures) May 8, 2018