Lots of projects have "yield" or "inflation" or something like that.
Does that mean that you'll lose to holding them?
2) It depends!
Well, really, it depends on the market.
Sometimes everything goes up. Sometimes everything goes down.
3) But another important point:
Let's say there's 10%/year inflation.
Do those new tokens go to:
a) the old token holders
b) some other group
4) For instance, BTC has inflation. It's the bad kind! The new BTC goes to miners, inflating away holders.
But, of course, BTC's inflation is capped, and it converges to a fixed supply, so this isn't so bad.
5) SOL's inflation is the good kind: you get it for staking, which anyone can do. So holding and staking SOL isn't bad because of inflation; price might decrease but your holdings will increase.
Lots of PoS chains work this way.
6) The _really_ bad kind is one where:
a) there's continuous inflation
b) the inflation doesn't go to the token holders
So e.g. yield farms with unbounded inflation that give new tokens to farms.
7) But wait -- even some of those are ok!
Because if you need to have the token to farm the token, then it rewards token holders. So yield farms on the token giving the yield are ok.
But yield farms on unrelated pairs are scary! That cases the bad inflation.
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While some of it is sensitive, I thought I'd share a redacted version of it here.
2) NOT INVESTMENT ADVICE
3) Writing investor updates for FTX is uniquely weird, because so much of the business is publicly available.
If you want to know about our trading volumes, that’s public. If you want to know about our revenue -- well, you can mostly back it out from the FTT burns.
1) We're really sorry about the messages today on Blockfolio.
We've also now figured out what happened. Here's the story.
2) First, we should have had stricter controls on which accounts could push signal updates. This is our fault, and earlier tonight we significantly increased the old security around it, moving it closer to in line with the security we have around trading functionality.
3) There were about 30 minutes of off and on availability issues while we completely purged all of the offensive content from the system; beyond that, @blockfolio remained online today.
2) No trading features/funds/etc. were at risk. Those are part of a totally separate part of the system and are in line with FTX's standards.
The affected portion was around display and news/Signal.
3) Over the next month I'll be leading a security review of the old, non-trading-related parts of Blockfolio to bring them in line with the standards set by trading, and by FTX more generally.
2) I'm really excited with the growth that FTX has had over the past years--from a brand new startup to the fourth largest crypto exchange in the world.
But in the end making money isn't what matters; it's what you do with it.
3) I originally got into crypto so that I could have positive impact on the world, donating what I make.
And I'm proud to say that a number of our team members have donated tens of millions of dollars over the last few years to some of the world's most effective charities.