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Comment by cmckn | Hacker News Reader

Entirely lacking details; but I don’t think anyone would be surprised at this point that shady things were happening at Terra Labs.

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And are happening. Luna2 got a people pouring money and it is gone now almost. It is not over.

There must be more to it, I can't believe people are believing in it. They must be in on the scam in some way.

People want to believe, because if they don't then it means they were wrong to believe in the first place. Faith is irrational.

Or: there are a lot of people who think that they're in on a scam, but in fact are lower down the pyramid than they are told. That explanation requires no faith, and can also explain participation of entirely rational actors.

Sunk cost fallacy applies to faith as much as it does to money.

perhaps they're blinded by denial?

Sadly, people have blind spots. I personally know someone who just like 40-50k, someone who was THE biggest advocate of Terra/Luna. Post crash? Reinvesting in Luna2.0

Fool me once, fool me twice... wow! It is this time when I think about all the people who cry about SEC regulations and argue that people are intelligent and need not be protected from scammers like this.

They’re part of a cult. Prophecies not happening actually strengthen their belief in the cult.

I know tons of people who made double digit millions in bitcoin. They put 10k to 50k early money in most projects they come across. Maybe 10% come out with a positive ROI of >1000%.

Crypto is no more of a scam than venture capital.

The fundamental difference being that from time to time, companies funded by VC actually build a product that is sold to the non-investing public.

If VC were like crypto, they’d only be funding startups whose objective would be to raise more money from other VCs

> If VC were like crypto, they’d only be funding startups whose objective would be to raise more money from other VCs

And this is not often the case? I mean for crypto it's basically only that, but there are quite a bunch of VC funded companies that just live on raise followed by raise. They won't say that out loud, but nor will crypto many crypto companies.

agreed, the difference being that those are bad apples in the VC basket, whereas they're the only apples in the crypto basket. which crypto unicorn has a product that it sells to non-investors? not a single one

Crypto feels a lot more like a pyramid scheme or MLM than typical VC

I'm sure there are people saying "look, NOW is the time to get in on luna2! We learned lessons from 1, and 2 will be perfect"

Of all the scams to fall for luna2 seems a very obvious one.

its like those doomsday cults that double down after the promised rapture doesn't arrive

It's easy, they know someone that knows someone that made a few hundred grand in crypto a while back, and they want a piece. The thinking doesn't go much beyond this.

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