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The more I read about “cryptocurrencies” the more they feel like frauds in the making.
My latest reminder is this detailed report by Fortune’s Team Ledger about an investment by the venture-capital firm Andreessen Horowitz in something called a “stablecoin.” I studied this article carefully, and for the life of me I can’t figure out what this stuff is about. I’m fairly confident I’m just a fuddy-duddy and will be proved wrong.
Be that as it may, here’s the key bit about the “Maker Coin,” or “MKR,” in question that’s got me scratching my head:
This arrangement screams out “Ponzi scheme” to my benighted brain. That or the infamous “round-tripping” deals done by slimy AOL executives back in the day.
The other interesting aspect of this investment is that Andreessen Horowitz is veering away from venture-capital investing and into cutting-edge securities speculation. According to Robert Hackett’s excellent profile of Kathryn Haun, the firm’s new partner, Andreessen Horowitz’s charter for its “crypto” fund allows for such investments.
It’s a new day and a new ballgame.