My own feelings aside, Do might be a good case study. I don’t think he’s an intentional scammer; he just had an idea that he was convinced was brilliant, without the knowledge or maybe imagination to see how spectacularly dangerous it was. I personally avoided Terra/UST from genesis because I immediately saw that is was exploitable with a big enough position on UST. But it took some searching to find the exact peg mechanism, and by the time it collapsed, it had gotten so big that I started to question my own judgement. Do might have caught whiffs of the already risky ideas surrounding algorithmic stablecoins, and pushed forward something that looked passably similar at his introductory level of knowledge. The apparent possibilities at this level are far greater than what is possible with more knowledge in the area. The investor class is also stuck at this level of knowledge, because they make their money by raising from and selling to the level down from there. I don’t see any distinction between crypto and traditional equities in this regard, except that the SEC is supposed to protect ignorant consumers, which they clearly can’t, and the government is there to backstop any disasters at the expense of everybody smart enough to avoid it in the first place, which makes them the dumb ones in the end. So yeah, it was a stupid idea, but look hard enough and you’ll find the same stupid ideas behind every investment with any hope of keeping up with the cost of feeding, housing, and educating your kids. If there is evidence that shows that Do is the one who pulled the rug, then my theory is flawed. Basically, it is that people who achieve great investment success are operating at a level of genuine enthusiastic ignorance that cannot be faked by a scammer or an expert.
