$600M taken in largest DeFi hack to date

Re:$600M taken in largest DeFi hack to date by nl on Wednesday August 11, 2021 @12:41AM (#28138093)

> It's a bit of a tradeoff. As consumers, we get some benefits and the company gets their existence & rent guaranteed indefinitely.

You have misunderstood regulatory capture. Regulatory capture occurs when the regulator puts the interests of those in the industry ahead of consumers.

> In return, this regulation raised the startup costs so significantly that only the pre-existing large companies could adapt and new entrants effectively ceased to exist.

This isn't regulatory capture. Regulatory capture is things like making laws that it is only possible for incumbents to be licensed to do specific jobs.

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Re:$600M taken in largest DeFi hack to date by dumbfoundded on Wednesday August 11, 2021 @01:18AM (#28138293)

I don't think the world is that simple. Corporations will usually use some consumer benefit that gives them an even greater benefit. I think I'm literally saying the same thing as you but with some nuance added. Companies don't just own the regulators and force them to do whatever they want. Companies justify extremely self interested regulations through the guise of some consumer benefit.

For industries emerging from the innovation stage to the regulatory capture state, usually the first regulations increase the startup cost to some extremely high level that only the incumbents can support. Only in the advanced stages to governments grant monopolies to specific companies.

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Re:$600M taken in largest DeFi hack to date by nl on Wednesday August 11, 2021 @05:30PM (#28148038)

This might be true, but it's not what regulatory capture I'd talking about.

That's a very specific term with a specific meaning.

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