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May 20, 2014

this is why distributed exchanges are doomed to failure

Filed under: Uncategorized — @ 12:00 a.m.
this is why distributed exchanges are doomed to failure

From the Vircurex website:

Vircurex is not the issuer of the vircurex asset on NXT decentralized asset exchange.
Our shares are only listed on cryptostocks.com. The asset issuer on the NXT decentralized assetexchange is not associated with us in any ways.

A total and complete lack of adult supervision is why the distributed/decentralized exchanges are doomed to failure. With no vetting, anyone can pretend to be anything (hello? this is dog!), and issue stock in things that don't exist or with which the 'issuer' has no actual relationship. It's an old story, actually, dating back to A Dragon's Tale. Once upon a time, someone used a normal scam-exchange to list a stock that claimed to confer ownership in A Dragon's Tale (a Bitcoin gambling MMORPG thinger). The 'exchange' on which this asset listed failed to perform any due-dilligence, and when the particularly egregious scam in question turned out to be, well, a scam, they de-listed it promptly and never spoke of the matter again.

With derpstributed exchanges, however, there is no adult supervision, and so scams are destined to rule the roost. Capital barriers are imposed not because we're assholes, but because it's an easy way to see if a player's qualified for the game. Besides, if you really intend to play in the market, you should also intend to recoup the cost of surmounting those barriers. Anything that can't recoup the cost of entry should never be admitted.

The challenge of locating that bar should be left to adults, though. Adults who insist on capital barriers.

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