A glimpse into the dark underbelly of cryptocurrency markets
Source - Nic Carter's Medium
- Nic looks at the relationships between exchanges, altcoin developers/promoters and ranking sites.
- Issuers want to list on liquid markets and exit or pump their positions
- Exchanges want to advertise themselves as liquid, so issuers will be more amenable to paying listing fees
- The ‘altcoin casino’ exchanges are mostly unregulated and unmonitored, and can thus get away with virtually anything
- Many exchanges thus engage in wash trading to make their volumes appear greater and improve their perceived liquidity profile
- Rankings sites monetize through reflinks and ads, and lack the resources to monitor each exchange, and hence uncritically publish exchange data
- Wash trading exchanges gain in the rankings on the rankings sites, successfully marketing themselves
- Exchanges profit, rankings sites profit, issuers profit, all at the expense of investors (who may win in the short term)
Liberal Radicalism: Formal Rules for a Society Neutral Among Communities
A paper by Vitalik Buterin-(Ethereum Foundation),Zoë Hitzig-(Harvard University - Department of Economics) and
E. Glen Weyl-(Microsoft Research New York City; Princeton University - Julis Rabinowitz Center for Public Policy and Finance)
Source - SSRN
- They propose a design for philanthropic or publicly-funded seeding to allow (near) optimal provision of a decentralized, self-organizing ecosystem of public goods
- Extends Quadratic Voting.