Re:UST Stablecoin Loses Dollar Peg
by Tenoke on Tuesday May 10, 2022 @06:27AM
(#31325423)
A lot of businesses operate at a loss for the sake of growth early on, including a lot of the unicorns from the last decade or more.
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Re:UST Stablecoin Loses Dollar Peg
by SAI_Peregrinus on Tuesday May 10, 2022 @09:37AM
(#31326962)
Yes, but most of them have a business plan that doesn't involve taking a loss, once they've reached a certain scale. And while they're taking that "loss" it's not usually due to revenues being below the cost of goods sold, it's because they're spending all profits + some investor money to grow. Many (though not all) can simply stop growing and be instantly profitable. Businesses that sell you $10 for $5 tend to fail as soon as they run out of capital, because they've got no path to profitability.