Re:Worldcoin: A solution in search of its problem
by Animats on Sunday July 30, 2023 @03:24PM
(#36934957)
> why does it need a coin?
Otherwise it wouldn't Make Money Fast.
This came up a few weeks ago on HN, with someone from a small country writing that they quit a crypto startup because they realized it was a scam. The startup was starting up an exchange, which doesn't really need a "coin". But they had to have one, so they could play games with the financial structure and Make Money Fast.
This is why there are very few real DeFi crypto exchanges. A trustless exchange, where the exchange never has custody of the money, is the way a crypto exchange ought to work. The exchange is then just a matching service - people put limit orders on a blockchain, the exchange finds ones that match, and tells both parties "go". Like the NYSE, which never owns a stock.
But there's no Make Money Fast in that. It's getting your hands on the customer assets that pays off.
Otherwise it wouldn't Make Money Fast.
This came up a few weeks ago on HN, with someone from a small country writing that they quit a crypto startup because they realized it was a scam. The startup was starting up an exchange, which doesn't really need a "coin". But they had to have one, so they could play games with the financial structure and Make Money Fast.
This is why there are very few real DeFi crypto exchanges. A trustless exchange, where the exchange never has custody of the money, is the way a crypto exchange ought to work. The exchange is then just a matching service - people put limit orders on a blockchain, the exchange finds ones that match, and tells both parties "go". Like the NYSE, which never owns a stock.
But there's no Make Money Fast in that. It's getting your hands on the customer assets that pays off.