Tokenized shared platforms (ICOs) w network effects are superior at delivering value to participants than a simple competition between centralized monopolists. Rent seeking can be overcome more efficiently by tokenomics & shared prosperity than competition.
Entrepreneurs essentially become issuing mini-central banks in their micro-economy that represent the platform network but with predetermined issuance policy that participants can transparently view.
The key is DLT allowing for the amelioration of counterparty risk, sharing a common resource, & transparency that reduces the power of platform monopolists (e.g. Uber model).
Transparency is key that monopolists will never provide to the market of a shared network resource. The issuance structure of ICO coins over time is that inflationary supplies lead to decreasing prices for users over time.
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This should make you angry if you use PoW chains that utilize concentrated mining pools. Shows via data that there is likely collusion in processing mempool fees are processed & overall resources optimized for the miners. Why anyone would build a financial system on top of this?
Strategic Capacity Management is the name of the game. Keep your resource at a premium at all times, even if means not delivering on the end user. Wow! Talk about being held hostage when blocks are left underutilized even during congested periods.
Wash trading on low ranked unregulated exchanges is highly incentived by rank improvement and attraction of traders that place a premium on liquidity. WT comprises a significant portion of the industry activity, dominates.
Excellent paper by Lin William Cong and team at Cornell.
XRP is the favorite to spook wash trading, but the arbitrage bots collapse the effect in less than 1 week. Likely due to low final settlement chain fees & large investor base.
Application of Benford's Law can catch wash trading exchanges:
Excellent paper by Giovanni Compiani & Matteo Benetoon of UC Berkley on the role of belief in the price action of digital assets over demographics (early vs. late buyers & age). cowles.yale.edu/3a/bcwp-invest…
Creating the model and sorting out some relative effects on a the data set.
The Arbitrary Nature of Economic Policy Preferences 1/ The vast majority of FinTwit / CrypTwit is consumed by the arbitrary application of preferred monetary policies. Constant tribalism between Keynesians/Austrians, De-/Inflationist, Centralists/Decentralists, Traders/Investors.
2/ What are economic principles & "schools of thought" if not arbitrary ideological preferences as to how we as human beings relate to one another? Money & Value are distillations of our collective efforts & obligations to one another across space & time, humans serving humans.
3/ Our collective sense of organization via incentives distill down to the constituent physical elements that constitute our world, matter & energy. Consumption of matter & energy are abstracted into currencies, stores of value, assets, interest rates (time).
Non-Fungible Tokens (NFTs) as Peak Property Rights
1/ Distributed Ledger Technology (DLT) has afforded humans the idea of claims on digital abstractions as property rights on the internet. I can purchase ETH or XRP or any other digital asset & the double spend is protected.
2/ What we are really talking about is the careful accounting of shared states in distributed databases so that consensus is arrived at & disagreements are precluded. This naturally lends itself to the concept of property rights as those are conflict resolution concepts.
3/ Global society has been on a secular trajectory with the advent of technology & the expansion of private property rights towards the pinnacle of those two concepts (peak in the sense of ultimate expression not moral judgement of good/bad). Started with currency, an abstraction
Don't normally connect dots, but hey, it's almost Christmas, let's have fun...
Mr. Jay Clayton was once a partner at Sullivan & Cromwell LLP, where he was a member of the firm’s Management Committee and co-head of the firm’s corporate practice. OK
Sullivan & Cromwell advises some of the largest firms and investment banks in the world, one of which is Goldman Sachs. The firm happens to be very familiar with global banking infrastructure including cross border commodity swaps & even SWIFT messaging: sullcrom.com/publication_de…
At the same time Goldman Sachs advances a cross border payments initiative in early of 2020, hmmm...