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claims/is-predatory.md
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# Crypto assets are predatory investments # 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. 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.

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claims/web3-decentralized.md
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# 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 ## 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. 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.

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# Bucket Shop
See also [crypto exchange](crypto-exchange.md).

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concepts/cbdc.md
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CBDCs have been critized as being an extension of the surveillance state that conflicts with financial privacy norms. CBDCs have been critized as being an extension of the surveillance state that conflicts with financial privacy norms.
## Examples ## Examples
* Chinese Digital Yuan * Chinese Digital Yuan
* Bahama Sand Dollar * Bahama Sand Dollar
* Project Hamilton * Project Hamilton
## References ## References
* Hockett, Robert C. 2019. ‘Money’s Past Is Fintech’s Future: Wildcat Crypto, the Digital Dollar, and Citizen Central Banking’. * 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. * 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. * 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.

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# Front running

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concepts/market-manipulation.md
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# Market Manipulation # 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). 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 ## Insider Trading
See [asymmetric-information](asymmetric-information.md). See [asymmetric-information](asymmetric-information.md).
@ -11,19 +14,15 @@ See [wash-trading](wash-trading.md).
See [pump-and-dump](pump-and-dump.md). See [pump-and-dump](pump-and-dump.md).
## Order Tampering ## Order Tampering
Altering of [order-book](order-book.md) to privilege the market maker or a [cartel](cartel.md) of insiders. Altering of [order-book](order-book.md) to privilege the market maker or a [cartel](cartel.md) of insiders.
## Halting ## 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. 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 ## Redemption Manipulation
Discretionary restriction of the sale of assets for [currency](currency.md). Discretionary restriction of the sale of assets for [currency](currency.md).
## References ## References
* Lefevre, Edwin. 2004. Reminiscences of a Stock Operator. Vol. 175. John Wiley & Sons. * 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. 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. 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.

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guide/index.md
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* [Non-economic](../concepts/non-economic.md) * [Non-economic](../concepts/non-economic.md)
* [Paper wealth](../concepts/paper-wealth.md) * [Paper wealth](../concepts/paper-wealth.md)
* [Liquidity pool](../concepts/liquidity-pool.md) * [Liquidity pool](../concepts/liquidity-pool.md)
* [Bucket shop](../concepts/bucket-shop.md)
* [Artificial demand](../concepts/artificial-demand.md) * [Artificial demand](../concepts/artificial-demand.md)
* [Financial asset](../concepts/financial-asset.md) * [Financial asset](../concepts/financial-asset.md)
* [Assets](../concepts/assets.md) * [Assets](../concepts/assets.md)

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meta/claims-todo.md
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- [ ] [web3-decentralized](../claims/web3-decentralized.md) - [ ] [web3-decentralized](../claims/web3-decentralized.md)
- [x] [environmental-footprint](../claims/environmental-footprint.md) - [x] [environmental-footprint](../claims/environmental-footprint.md)
- [x] [is-bubble](../claims/is-bubble.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) - [x] [digital-gold](../claims/digital-gold.md)
- [ ] [new-internet](../claims/new-internet.md) - [ ] [new-internet](../claims/new-internet.md)
- [ ] [risk-to-state](../claims/risk-to-state.md) - [ ] [risk-to-state](../claims/risk-to-state.md)

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- [ ] [price-risk](../concepts/price-risk.md) - [ ] [price-risk](../concepts/price-risk.md)
- [ ] [sanctions-enforcement](../concepts/sanctions-enforcement.md) - [ ] [sanctions-enforcement](../concepts/sanctions-enforcement.md)
- [ ] [survivorship-bias](../concepts/survivorship-bias.md) - [ ] [survivorship-bias](../concepts/survivorship-bias.md)
- [ ] [bucket-shop](../concepts/bucket-shop.md)
- [ ] [front-running](../concepts/front-running.md)
Ideologies Ideologies