From fa710ef97fa9cdc9064fd320ccaa87f6f4ca028f Mon Sep 17 00:00:00 2001 From: sdiehl Date: Wed, 23 Mar 2022 09:59:51 +0000 Subject: [PATCH] Expand predatory inclusion --- claims/is-predatory.md | 4 ++-- claims/web3-decentralized.md | 3 ++- concepts/bucket-shop.md | 2 ++ concepts/cbdc.md | 2 -- concepts/front-running.md | 1 + concepts/market-manipulation.md | 7 +++---- guide/index.md | 1 + meta/claims-todo.md | 2 +- meta/concepts-todo.md | 2 ++ 9 files changed, 14 insertions(+), 10 deletions(-) create mode 100644 concepts/bucket-shop.md create mode 100644 concepts/front-running.md diff --git a/claims/is-predatory.md b/claims/is-predatory.md index d29a12b..1c0783e 100644 --- a/claims/is-predatory.md +++ b/claims/is-predatory.md @@ -1,7 +1,7 @@ # Crypto assets are predatory investments -Crypto assets are a form of predatory financial product. Crypto asset [market making](../concepts/market-maker.md) is subject to extreme forms of [market manipulation](../concepts/market-manipulation.md) not found in other regulated markets. The [price-formation](../concepts/price-formation.md) of crypto assets is untethered to any [fundamental-value](../concepts/fundamental-value.md) and instead depends purely on the [greater-fool-theory](../concepts/greater-fool-theory.md). +Crypto assets are a form of predatory financial product. Crypto asset [market making](../concepts/market-maker.md) is subject to extreme forms of [market manipulation](../concepts/market-manipulation.md) not found in other regulated markets. The [price formation](../concepts/price-formation.md) of crypto assets is untethered to any [fundamental value](../concepts/fundamental-value.md) and instead depends purely on the [greater fool theory](../concepts/greater-fool-theory.md). -The price setting by crypto excahnges and [order-book](../concepts/order-book.md) design admits extreme forms of [asymmetric-information](../concepts/asymmetric-information.md) which privileges an [economic cartel](../concepts/cartel.md) who can manipulate crypto assets to extract wealth from public from unfair market making. +The price setting by crypto exchanges and [order book](../concepts/order-book.md) design admits extreme forms of [asymmetric information](../concepts/asymmetric-information.md) which privileges an [economic cartel](../concepts/cartel.md) who can manipulate crypto assets to extract wealth from public from unfair market making. The base economics of crypto assets make them [negative sum](negative-sum.md) which guarantees the amount of loses in the asset class exceed the gains. diff --git a/claims/web3-decentralized.md b/claims/web3-decentralized.md index ea29549..ad4f1df 100644 --- a/claims/web3-decentralized.md +++ b/claims/web3-decentralized.md @@ -1,4 +1,5 @@ -# Crypto is not decentralized +# Web3 is not decentralized +In all scenarios web3 still requires central parties for its technical operation and simply involves [recentralization](../concepts/recentralization.md) of services that already exist. Since web3 is centralized then it has neither the [censorship resistance](../concepts/censorship-resistence.md) properties or [decentralization](../concepts/decentralization.md) claims its myth-making and marketing claims. ## References 1. Walch, Angela. 2019. ‘Deconstructing ‘Decentralization’: Exploring the Core Claim of Crypto Systems’. C. Brummer (Ed.), Crypto Assets: Legal and Monetary Perspectives, 1–36. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3326244. diff --git a/concepts/bucket-shop.md b/concepts/bucket-shop.md new file mode 100644 index 0000000..a1bc93a --- /dev/null +++ b/concepts/bucket-shop.md @@ -0,0 +1,2 @@ +# Bucket Shop +See also [crypto exchange](crypto-exchange.md). \ No newline at end of file diff --git a/concepts/cbdc.md b/concepts/cbdc.md index 098dd9d..5348fd1 100644 --- a/concepts/cbdc.md +++ b/concepts/cbdc.md @@ -6,13 +6,11 @@ CBDCs are either based on an *account model* or *token model*. CBDCs have been critized as being an extension of the surveillance state that conflicts with financial privacy norms. ## Examples - * Chinese Digital Yuan * Bahama Sand Dollar * Project Hamilton ## References - * Hockett, Robert C. 2019. ‘Money’s Past Is Fintech’s Future: Wildcat Crypto, the Digital Dollar, and Citizen Central Banking’. * Bilotta, Nicola. n.d. CBDCs and Stablecoins: The Scramble for (Controllable) Anonymity. Instituto AffariInternazionali. * Kiff, John, Jihad Alwazir, Sonja Davidovic, Aquiles Farias, Ashraf Khan, Tanai Khiaonarong, Majid Malaika, et al. 2020. ‘A Survey of Research on Retail Central Bank Digital Currency’. http://ssrn.com/paper=3639760. diff --git a/concepts/front-running.md b/concepts/front-running.md new file mode 100644 index 0000000..6d81b5c --- /dev/null +++ b/concepts/front-running.md @@ -0,0 +1 @@ +# Front running \ No newline at end of file diff --git a/concepts/market-manipulation.md b/concepts/market-manipulation.md index c53fdac..7340020 100644 --- a/concepts/market-manipulation.md +++ b/concepts/market-manipulation.md @@ -1,6 +1,9 @@ # Market Manipulation Manipulation of [price-formation](price-formation.md) and the natural operation of a [market](market.md). Can be performed by both [market makers](market-maker.md) and [cartels](cartel.md). +## Front Running +Using inside information about future orders to preempt market movements and extract from other market participants. + ## Insider Trading See [asymmetric-information](asymmetric-information.md). @@ -11,19 +14,15 @@ See [wash-trading](wash-trading.md). See [pump-and-dump](pump-and-dump.md). ## Order Tampering - Altering of [order-book](order-book.md) to privilege the market maker or a [cartel](cartel.md) of insiders. ## Halting - Discretionary halting of the [market](market.md) in order to prevent price movement the [market-maker](market-maker.md) does not wish to occur. ## Redemption Manipulation - Discretionary restriction of the sale of assets for [currency](currency.md). ## References - * Lefevre, Edwin. 2004. Reminiscences of a Stock Operator. Vol. 175. John Wiley & Sons. 1. Dhawan, Anirudh, and Talis J. Putnins. 2020. ‘A New Wolf in Town? Pump-and-Dump Manipulation in Cryptocurrency Markets’. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3670714. 1. Hamrick, JT, Farhang Rouhi, Arghya Mukherjee, Amir Feder, Neil Gandal, Tyler Moore, and Marie Vasek. 2018a. ‘An Examination of the Cryptocurrency Pump and Dump Ecosystem’. http://ssrn.com/paper=3303365. diff --git a/guide/index.md b/guide/index.md index 91b5be1..1469f65 100644 --- a/guide/index.md +++ b/guide/index.md @@ -167,6 +167,7 @@ Understand the deeper theoretical concepts behind the technical and economic cla * [Non-economic](../concepts/non-economic.md) * [Paper wealth](../concepts/paper-wealth.md) * [Liquidity pool](../concepts/liquidity-pool.md) +* [Bucket shop](../concepts/bucket-shop.md) * [Artificial demand](../concepts/artificial-demand.md) * [Financial asset](../concepts/financial-asset.md) * [Assets](../concepts/assets.md) diff --git a/meta/claims-todo.md b/meta/claims-todo.md index 8fd1a94..406f5d3 100644 --- a/meta/claims-todo.md +++ b/meta/claims-todo.md @@ -4,7 +4,7 @@ - [ ] [web3-decentralized](../claims/web3-decentralized.md) - [x] [environmental-footprint](../claims/environmental-footprint.md) - [x] [is-bubble](../claims/is-bubble.md) -- [ ] [narrative-economics](../concepts/narrative-economics.md) +- [x] [narrative-economics](../concepts/narrative-economics.md) - [x] [digital-gold](../claims/digital-gold.md) - [ ] [new-internet](../claims/new-internet.md) - [ ] [risk-to-state](../claims/risk-to-state.md) diff --git a/meta/concepts-todo.md b/meta/concepts-todo.md index f40964d..6a9c262 100644 --- a/meta/concepts-todo.md +++ b/meta/concepts-todo.md @@ -89,6 +89,8 @@ Third pass - [ ] [price-risk](../concepts/price-risk.md) - [ ] [sanctions-enforcement](../concepts/sanctions-enforcement.md) - [ ] [survivorship-bias](../concepts/survivorship-bias.md) +- [ ] [bucket-shop](../concepts/bucket-shop.md) +- [ ] [front-running](../concepts/front-running.md) Ideologies