Coinbase Stock and the Get-Rich-Quick Mentality

May 16. 2022. 5 mins read

A large number of young Americans believe there’s some elusive shortcut to wealth. The cause could be any number of reasons – Hollywood drivel that’s peddled as entertainment, the 15-second TikTok attention span, or today’s financial pundit touting ten stocks under $10 – whatever the cause might be, the snake oil salespeople of crypto have had a heyday so far. Twenty percent interest rates? Where do I sign up?

Twenty percent interest rates on Luna on Binance
Credit: Business 2 Community

Any lunatic who was crazy enough to throw down money on the above offer has eff all today. That’s because Luna is now trading at zero dollars, and everyone is posting suicide notes on Reddit, personal responsibility for poor financial decision making be damned.

Don’t say we didn’t warn you. Luna happens to be a stablecoin, and our piece last year on Why a Bitcoin Crash May Be Imminent specifically called out Tether as a financial product that’s almost too risky to believe. Ask yourselves this. In what other scenario would a handful of individuals be allowed to hold $75 billion and cite “attestations” because they refuse to be audited? As the company’s CTO posts tweets from Lugano, Switzerland talking about his favorite sport franchise, he’s also promised us that the commercial paper his firm holds – an unknown amount of which may be tied to China – is now being liquidated to prop up his stablecoin – Tether – that temporarily de-pegged itself from the dollar when that whole Luna problem hit.

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