GLX exploit is a steep learning curve
The release of validator nodes was supposed to be an event that would encourage users to buy and burn a decent stack of GLX tokens. In all my mental calculations, I expected GLX to experience some upward movement as the introduction of nodes was ideally meant to pump the price.
According to the arrangement in GLS, GLX tokens are burned to generate GLUSD. GLUSD is in turn, used to buy validator license in the game. So, on the surface of it, I figured that investors would simply just buy GLX and then burn it for GLUSD, thus leading to a slight pump.
I wasn't expecting a massive pump because the GLS crowd is still relatively small and there's still not much smart money in the system. It is still a narrow corridor of investors jostling for supremacy in a very small pond.
Alas, the fact that it is a small pond turned around to bite us in the ass, as a loophole in the conversion mechanism was exploited. The funny thing about it is that I heard about this exploit from whispers on the network but I didn't think too much about it.
Recently, @eddiespinno pointed me in the direction of a publication by @lordbutterfly where he talks about the exploit. After reading his publication, I learnt about the extent of the rut and for a system with low liquidity and a small circle of investors, it is hard not to feel hard done by fellow community members.
Emotional response
In a way, you could say that being offended by the fact that individuals took advantage of a loophole is an emotional response. In the literal sense of it, there's no crime in their action since code is law.
If the crypto industry continues to reward individuals that take advantage of a loophole whenever it appears and places no moral burden on investors, we will be creating a dog eat dog world. We will be walking into the stereotypes that politicians use to beat us in all their utterances.
If we, as a community are not able to police ourselves and call each other out for obvious morally bankrupt decisions then what on earth are we doing?
Lordbutterfly in his typical writing style used a healthy dose of hyperbole to compare this exploit to what Justin Sun did during the Steem days. They're obviously much different situations but it is fundamentally the same thing because they're all hurting a community to force their own personal interest.
At end of the Steem debacle involving Justin Sun, the community responded emotionally and practically through the hard fork. Today, we're much better than Steem and have grown, despite all the challenges in between.
This event is an eye opener for the devs and should also be used to create a teachable moment for the community at large. The GLS hierarchy have to take action to ensure that there will not be future exploits and put mechanisms in place that would detract people from making such morally bankrupt choices, even though potential loopholes can exist.
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Nobody who parades himself/herself as a decent person should have done this. There are ethics that a person in society should not break. Overall, people would be more wary of investing in projects such as these again.
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Hive is being killed by the dv groups who basically just manipulate earnings by downvoting ppl with any hp that do what they do in posts and say its not allowed but they collect as a group the same as if they were absically self voting
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Hive is being killed by the dv groups who basically just manipulate earnings by downvoting ppl with any hp that do what they do in posts and say its not allowed but they collect as a group the same as if they were absically self voting
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we all should really look at what he is involved in and figure out a proper punishment or tax for doing so taking away any benefit or calculated future benefit that we come up with and the amount will be at least 5X the inital exploit or anyone else the same as well put a abuse deterance group focused on spl and gls so we do not have to worry as it will make most exploits not profitable if caught
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we all should really look at what he is involved in and figure out a proper punishment or tax for doing so taking away any benefit or calculated future benefit that we come up with and the amount will be at least 5X the inital exploit or anyone else the same as well put a abuse deterance group focused on spl and gls so we do not have to worry as it will make most exploits not profitable if caught and its not breaking anything in the idea of crypto and decentralization if the majority do not like what is done and decide to exact a punishment by costing them money
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:) :) :) i don't know what kind of world you live in. it's pretty normal, if you look around and see the biggest speculators in the fiat system, it is nothing new, they do similar things all the time, most of them are even proud for it, write books about it... and they are the respectable people in our world, and they never get charged for their 'crimes'.
the play 2 earn includes the fact, there is no morality in it. it's about money. if you have more, you can earn much easier, manipulate markets, like everywhere else. Hive is the same, because of that, hard to look at this as a real community.
otherwise, i understand your personal disappointment, but lets be honest, it is mostly because your speculation did not work, while others did. :) kinda hypocrath. as if your speculation works out - obviously for others disadvantage, you don't care community at all. (same like everybody, I am just honest.)
i follow you for a while, you talk about gls governence, but you just found it out... :)
anyway, my personal opinion, the majority of the people are wrong about GLX, it will go down and down, until new projects will not be introduced.
the GL Goals (soccer game) token is the GLGT what is not in use at the moment. (equal with SPS). personally, i am buying that for speculation, as that will have a pump when the game starts, not GLX, obviously.
anyway, you could buy credits and exchange them for GLUSD, so you did not need GLX at all...
https://peakd.com/splinterlands/@genepoolchlrn8r/an-open-letter-to-the-gls-and-spl-communities
I'm not claiming to be a saint, far from it. I speculate like everyone else but I don't think we should encourage actions that hurt the community and bring disrepute to the entire project.
This situation isn't necessarily about speculation but more about taking advantage of a loophole and that's okay but when you intentionally hurt others, there should be a line.
you'll anyway. in any market. if you speculate to one direction, you are going to hurt intentionally the ones who speculate in the other way. that's the business.
yes, i got it. same like people with a lot money in the 'real' financial world. They do not just simply take advantage of the loopholes, but create the loopholes. Needless to say more than the tax-heavens, tax small gates, like charity organizations. You and me, who has nothing, can't take advantage on that, but the ones who have a lot, created these loopholes can, only they can...
that's how it is. anyway, based on above logic: i supposed, if this game developed by SP guys, they know how to avoid things like this. My suspicion turns to their direction. They did not know, it will happen or they knew it exactly and... creating loopholes... i dont go further. :) :) :)
no deff not only did it bc ppl were mad and they seem to think it should not cost him more than he made and the only way to do that is via a group in vested in the community and that group stops using there stuff and stops voting on any posts from them and downvotes as well until the specified damanges are made back.
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More liquidity in the market would make it a lot harder to influence the market
Absolutely right you are. That would require plenty marketing
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i wish he really thought about how much of a impact it has had before he went not only just exploiting but likely causing a temp decline and many ppl selling out of the project whihc pushes fmvs down further letting him accumulate from the fear right now during the drop which when the game comes out likely will stop and all of the sudden fly and what ppl can do is make sure not to buy anything from him, dont use there services and also downvote until were satisfied hes paid enough for the damages caused not by doing anyhting but by not doing things and making sure we exact a punishment of downvotes for it and anyone else as a warning to future abuse. THis could be used as a example and hit him hard with a punisghment and make sure its posted with a summary in a tab that has a list of ppl who have been involed in exploits like that and details how much they damanged the games and how much punishment was enacted as well as detialed reports on exxactly the facts and all the info ppl need to be part of the abuse deterance. That is a completely ok way to do it bc if we can then most of the community will need to agree and if they do which anyone who really didnt exploit will have prob no issue doing this bc only one its beetter for is him and why should he get rewarded he shouuld be punished but by other methods like above and the sentance should be set by anyone who is willing to delegate power to ensure this gets punished by extracting income another way form them unitil the amount set is hit making sure they pay a hefty price for it and if i can get downvoted for bs stuff someone who exploits should be a no brainer to just make a example out of which would likelu help restore confidence as ppl will see what happened to that person and that it cost them much more than the exploit was worth so others will not do it if they see the community would rip anyone who did apart and even we can stop buying any assets hes trying to sell so we disrupt his ability to liquidate unless he drops the price so far where there will be a loss which allows ppl to exploit him only or ppl that do such things as long as the community really stops interacting and goes into a punishment mode unitil the amount the gorup decides is extracted by those means. Then the punishment will be advertised and show any exploit hope one is enough if we set a example of zero tolerance and swift and steep costs then ppl wont do it if they have other things that the community can do which is why im so shocked he did it he has so much to lose but unless someone organizes the group hell just get away with it no punishment and leaves the community looking less strong than it can be and if we have steep punishments for that in place by impacting them so much that they would not think of doing it agian as such actions would cost them more and more money expacially if done a second time the cost would incerase 10 fold and after that if a third the person wiould never get let up on and there business never used if it was a perfect world and ppl actually could come together and i hope ppl do and make sure that were able to check ppl who think there above the rest which will stop any other forms of abuse like banning me form a guild bc he could bc he is high in ygg he uses that as a retaliation tool and braged to me that i was banned directly because of him and his dislike lol So he really thinks he can just get away with that maybe for now but when he least exxpacts it i will do something to make sure at least the right ppl in ygg hear it after i make a large investment and maybe if i do that and depending on the capital then possibly could influence ygg and make a preferreed service provider for ygg members and make it everyone but theres so theres is more expensive for every ygg member and the others offer discounts so there more attactive and if they want to com0pete they will beforeced to lower prices and lose money that way to.
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