💊Rationale
What, Why, and How
1. Introduction
The internet has become a breeding ground for fraudulent get-rich-quick schemes. These schemes, which were once operated by a few individuals, have now evolved into global businesses.
Fake gurus have emerged as a powerful force, preying on the vulnerable and desperate by offering quick fixes and easy solutions to their problems. These 'grifters' use false marketing to manipulate their followers and offer false hopes and empty promises.
Without naming any specific examples, we can easily describe some of the schemes that exist, such as offering courses that claim there is something wrong with you and promising to fix it for a fee, or blaming financial struggles on childhood experiences and offering to teach people how to make money for a cost that exceeds any potential gain. Others may promise to teach how to make money by providing a "recipe" for success. And then there are those who promote digital tokens that promise to "go to the moon," but in reality, these tokens are not worth much and the creators are only looking to line their own pockets.
It is important to remember that these schemes are not created to benefit the individuals who invest in them, but rather to make the creators and their teams richer.
Get-rich-quick schemes are often scams because they promise easy and fast ways to make a lot of money, without requiring any effort or skill. These schemes are typically based on unrealistic and exaggerated claims and may involve investment opportunities that are too good to be true. Many get-rich-quick schemes are designed to take advantage of individuals who are desperate to make money, and who may be willing to believe the false promises and exaggerated claims made by the creators of these schemes.
2. Why Crypto failed
Blockchain and cryptocurrency are related, but they are not the same thing. Blockchain is a powerful technology with a wide range of applications, but its most successful application to date is Bitcoin. On the other hand, cryptocurrency uses the concepts of blockchain technology to create a variety of different digital assets, but many of them are more centralized in nature.
For most people, understanding and using blockchain technology can be complex, which is why many companies/projects have created an abstraction layer to make it more accessible for the average person. However, many of these companies have advertised their products as providing ownership and autonomy, when in fact they are providing custody and control. This is not in line with the decentralized principles of blockchain technology.
In the past, many projects have lured users in with promises of digital independence and sovereignty, only to later remove valuable assets and "pull the rug" out from under their investors, leaving their tokens worthless and stealing the community's funds. This is widely known as a "rug pull."
In an emerging market, there are always bad actors who abuse the technology to hold users' funds, as we have seen in 2022 with the collapse of Terra Luna and the FTX fraud that initially impacted projects like Celsius, 3AC, and Voyager before ultimately collapsing itself.
The recent crypto bull market (middle of 2020 and lasted until late 2021) can be compared to the dot-com bubble, but on a global scale, as more people were able to participate in the "revolution". However, it's important to remember that this is not about a revolution, but rather about people wanting a better life. Sometimes, too much information can be overwhelming and people will settle for the most convincing projects, regardless of the actual technology behind them. In the end, it's not always about better technology, but better marketing.
Blockchain technology can be seen as a path towards digital socialism, where all individuals have an equal share and participation. But unlike traditional socialism, which relies on the trust of unpredictable human systems, blockchain operates on a system of code and smart contracts that are unbreakable. In joining a blockchain protocol, individuals know the rules beforehand and can expect a certain level of transparency and fairness.
It's important to disregard the noise and speculation surrounding blockchain and web3. Technology is simply a tool, like electricity in the 18th century. How it is used and the outcomes it creates are up to the choices and actions of individuals. While some may choose to participate in shady get-rich-quick schemes, meme coins, and unsustainable yield farming, others may use it for more noble and sustainable purposes. The choice is yours.
3. What's with the Dolphin?
3.1. Lorenz Curve
Max O. Lorenz developed the Lorenz Curve in 1905 to represent wealth distributions in populations. It’s used to recognize “too much inequality,” which turns out to be very similar to “too much centralization.” When wealth is unequally distributed, it’s usually centralized in the hands of a few. The Lorenz Curve shows the cumulative share of income from different sections of a population. In a case of perfect equality, the chart would show a straight 45-degree line connecting the x and y-axis.
In the above example, the poorest 20% of the population earns 5% of the cumulative income. In comparison, 90% make together 55%, which means that the top 10% of the population earns 45% of the entire population’s income. This can directly be applied to Decentralization because if you have only one decision-maker (or one party earning all income), you are dealing with a highly centralized system.
3.2. Nakamoto Coefficient for Ownership
Ownership according to wallet addresses is another interesting statistic to look at to quantity decentralization. Ideally, in a network, no one entity has the power to move the markets with their holdings significantly. In reality, whales (investors with significant holdings of tokens) are no rarity in crypto. The more tokens whales hold the less decentralized the token distribution. As meme coins continue making headlines by securing listings on renowned exchanges, the distribution of wealth in them should raise concerns
3.4. The Dolphins - Millenials and Gen Z
Millennials and Zoomers, the younger generations, have grown up in a world where they see the rich getting richer while they struggle to make ends meet. They are tired of the current system that they see as favouring the wealthy and they want a change. The phrase “When the people shall have no more to eat, they will eat the rich!”, which has been circulating on social media platforms like Twitter and TikTok, is a reflection of this sentiment. This phrase is not to be taken literally but it is a representation of the frustration of the young people with the current state of the economy.
3.5. Dolphins & Whales
The desire among Millennials and Zoomers is not necessarily a wish to redistribute wealth, but rather a desire for a different way of life, a sense of belonging to a group, to something bigger than themselves, a sense of social authentic connection and ownership.
They may not necessarily want to be rich themselves, but they do want to live a rich life in the sense that they want the freedom to pursue their passions and interests without being held back by financial insecurity.
In the current economic system, many people are forced to exchange their time for money by working jobs that they don't necessarily enjoy or are not passionate about. They do this in order to make a living and pay their bills, but in doing so, they are often sacrificing their true passions and interests.
4. Solutions
We all experienced the feeling of being overwhelmed in today's fast-paced world where everything seems confusing with too many options on our table and a lot of actors who fight for our attention and our money, which ultimately is our time and energy. We all know that is really hard to compete with others or challenge the status quo if you don’t have a network.
One solution is for individuals to take responsibility for their own lives and actively work to improve their circumstances. This means changing their own behaviour, learning new skills, and seeking out opportunities that align with their goals and values.
Nonetheless, we can also come together and form groups of like-minded individuals with similar goals. These groups can work together to challenge the status quo and create new opportunities for themselves and others. By pooling resources, skills, and networks, we can create a collective impact that is greater than what any one person can achieve alone.
Let’s get down to it.
But what are the Dolphins tho?
... Millenials and Gen Z united towards one goal: Live long and prosper🖖
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