[HN Gopher] Solana Labs completes a $314M private token sale led...
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       Solana Labs completes a $314M private token sale led by Andreessen
       Horowitz
        
       Author : nikita
       Score  : 33 points
       Date   : 2021-06-13 21:39 UTC (1 hours ago)
        
 (HTM) web link (solana.com)
 (TXT) w3m dump (solana.com)
        
       | mgh2 wrote:
       | Previous related discussion:
       | https://news.ycombinator.com/item?id=27492616
        
       | kgraves wrote:
       | This is how the scam begins, the downfall of Solana. It is yet
       | another pump and dump just like all of these coins.
       | 
       | Cryptocurrencies must be stopped, there is absolutely NO benefit
       | to having them.
       | 
       | We seen them all before, ransomware becoming rampant, massive
       | waste of electricity and resources and now the pandora's box
       | can't be closed quicker enough.
        
         | strangescript wrote:
         | People have been saying this about crypto for 10 years and
         | bitcoin 30x'ed despite all the negativity, with tons of big
         | institutions loading up on it behind the scenes. It's here to
         | stay.
         | 
         | When you buy something at the store, the cashier doesn't
         | question you how you got the money. They don't care. All they
         | know is the currency is the proof that you did something, or
         | sold something that other people valued.
         | 
         | Valuing a unique crypto hash is no more ridiculous than someone
         | valuing a painting, old baseball cards, ancient pottery and all
         | the other random stuff people collect and trade that are
         | nothing more than a decoration.
         | 
         | Well, except crypto completely mobile, easy to exchange and
         | can't be taken from you like all other the assets we have been
         | exchanging since the beginning of time.
        
         | prox wrote:
         | Can't agree more. The tech is interesting, but it is the same
         | greed behind it which is old as mankind. It solves absolutely
         | nothing, does nothing of value and adds none. Crypto is quickly
         | becoming a failure of immense proportions.
         | 
         | The externalities of cryptocurrencies include:
         | 
         | Massive carbon emissions. Funding "rogue states" such as North
         | Korea and Iran. Tax evasion. Laundering the proceeds of crime,
         | including the drug trade, theft and fraud, and armed robbery.
         | An epidemic of ransomware. A wave of securities fraud targeting
         | the greedy and vulnerable. Shortages of products including
         | graphics cards, hard disks, and chips in general as limited fab
         | capacity is diverted to mining ASICS. Abuse of free tiers of
         | Web services. Noise pollution.
        
           | baby wrote:
           | Obviously many people disagree.
           | 
           | Just to pick on one issue, carbon emission is negligible
           | (unless you talk about bitcoin).
           | 
           | Many people also rely on transfers of cryptocurrency. Just
           | not you or your entourage.
        
             | nikanj wrote:
             | Obviously people who have money to launder don't like the
             | idea of stopping money laundering. The same for people
             | doing drug trade, avoiding international sanctions, tax
             | evasion, etc.
        
               | [deleted]
        
             | mjfern wrote:
             | Yes, the people who disagree are those pumping and dumping
             | and the bag holders.
             | 
             | And cryptocurrency mining consumes as much electricity
             | annually as the country of Argentina. Country scale
             | emissions is not at all negligible, particularly in light
             | of catastrophic global warming.
        
               | baby wrote:
               | That's your opinion. And I guess that's all you have when
               | you can't talk about the tech.
        
               | anonporridge wrote:
               | Notice what you did here is the same subtle
               | disinformation tactic that every major news story about
               | crypto mining employs.
               | 
               | 1. Compare crypto energy usage to something huge (small
               | country, big tech companies, etc).
               | 
               | 2. Don't put that into context of whole of human
               | civilization. It's <1% of global electricity consumption.
               | 
               | 3. Don't clarify that this is comparing to _electricity_
               | consumption, excluding other major energy uses like
               | transportation, heating, and shipping which are generally
               | non electric and necessarily carbon emitting.
               | 
               | 4. Imply that cryptocurrency electricity usage is
               | creating tons of carbon emissions, even though it
               | consumes electricity and only seeks the cheapest source.
               | 
               | When it comes to carbon emissions and the resulting
               | climate catastrophe, we could shut down every
               | cryptocurrency tomorrow and we'd still be fucked.
               | 
               | Attacking cryptocurrency for it's energy use is a
               | horrible waste of political and social capital that could
               | be put toward actually solving the problem rather than
               | engaging in moral masturbation.
        
               | xvector wrote:
               | I guarantee you that you engage in activities that
               | provide far less benefit to humanity but use far more
               | energy than cryptocurrency.
        
           | miohtama wrote:
           | Please read the article and study the underlying technology.
           | Most of your statement is incorrect and lacks insight and
           | facts.
           | 
           | Solana uses proof of stake and does not have the energy
           | consumption issue, or does not use graphics card. It is cost
           | and energy efficient alternative for Bitcoin and other proof
           | of work public blockchains.
           | 
           | More about the history of proof of stake here:
           | 
           | https://capitalgram.com/posts/history-of-cryptocurrencies/
        
             | dvt wrote:
             | > Most of your statement is incorrect and lacks insight and
             | facts.
             | 
             | You expertly avoid all arguments except that Solana uses
             | proof of stake. Who cares. Prox's point still stands: folks
             | will continue to use blockchain-powered "pseudo-currencies"
             | for illegal drugs, murder-for-hire, money laundering,
             | ransomware, and speculation. No one's buying groceries with
             | BTC.
        
               | haswell wrote:
               | Replace 'blockchain-powered "pseudo-currencies"' with
               | "cash", and the same is true. Better outlaw cash.
               | 
               | This thread is not about BTC...
        
               | kgraves wrote:
               | We have Paypal / Bank Transfers to send money quickly,
               | BTC is a slower way of sending money.
               | 
               | What is your point?
        
               | haswell wrote:
               | Again, this thread is not about BTC...
        
               | api wrote:
               | My favorite Bitcoin joke: "so it's full of fraud, scams,
               | Ponzi schemes, money laundering, and is heavily used to
               | buy drugs and contraband... so this means it's a real
               | currency now?"
        
               | crummy wrote:
               | Isn't that why we don't have $10,000 notes? Or even $500?
               | To make illegal activity more difficult?
        
               | dvt wrote:
               | > Replace 'blockchain-powered "pseudo-currencies"' with
               | "cash", and the same is true. Better outlaw cash.
               | 
               | You can't be serious. Ad hoc cash transfers are regulated
               | (can't bring more than $10k across borders without
               | declaring, for example), supply is limited, and bills
               | have literal _serial numbers_ on them.
        
               | haswell wrote:
               | Crypto is a relatively new technology. Illegal money is
               | as old as civilization.
               | 
               | Yes, there are regulations to make it harder to carry out
               | elicit business, but that doesn't change history, nor
               | does it invalidate the point I was trying to make.
        
               | xvector wrote:
               | And yet a ton of illegal activity is performed with cash.
               | 
               | On one hand, some cryptos (not Solana) are useful for
               | illegal activities. On another, they're also useful for
               | privacy, censorship resistance, and financial freedom.
               | 
               | It's no different than the argument against E2EE, but I'd
               | rather live in a society with E2EE than without.
        
               | GoodJokes wrote:
               | Folks will also continue government issued currency for
               | illegal activities too. In fact, if we look at capitalism
               | at large, most currency use is unethical.
        
               | miohtama wrote:
               | > avoid
               | 
               | Because I am typing on a mobile.
               | 
               | Happy to answer later if you are genuinely curious and
               | not just ranting.
        
               | baby wrote:
               | Like real money, it can be used for fraud and for
               | legitimate usecases. Your generalization made up from
               | thin air brings nothing to the conversation.
        
               | raziel2701 wrote:
               | So then what's the point of this thing then? All these
               | crypto things reek of ponzi schemes and I have yet to see
               | an application of it that makes me think the technology
               | is good/needed. So far, crypto is a solution looking for
               | a problem.
        
               | kgraves wrote:
               | How can you create a coin, get investors into a private
               | token sale (or even allocating pre-mined coins), hype the
               | trojan horse onto the public to get them involved, then
               | getting the coin on main exchanges and then investors
               | dumping the coin causing it to be worthless. All this
               | being unregulated by the way.
               | 
               | This happens all the time with these projects most
               | recently ICP (Internet Computer) and just one of the
               | reasons why this is all a complete scam.
               | 
               | There is a name for this type of rinse and repeated
               | scheme.
               | 
               | There is no reason why this can also happen to Solana,
               | rendering cryptocurrencies even more worthless than real
               | money.
        
         | haswell wrote:
         | The problem with this comment is that it ignores advances in
         | crypto meant to address the primary downsides.
         | 
         | I'm 100% in agreement that some aspects of some crypto
         | currencies are extremely problematic and should/must be
         | stopped.
         | 
         | But generalizing all crypto the way this comment does is not
         | helpful or constructive. Recognize the nuance, and be specific
         | about the issues.
        
         | [deleted]
        
         | atlgator wrote:
         | Not surprised Mark Andreesen and Ben Horowitz are at the center
         | of it. They were on Clubhouse shilling NFTs all pandemic.
        
         | coolestguy wrote:
         | Spoken like someone talking about immigration who knows only
         | what they've seen on Fox News.
         | 
         | You're so unbelievably short sighted about a tech innovation.
         | There's more to crypto than bitcoin & greed is an unsolvable
         | issue in humanity, not a crypto bug,
        
           | baby wrote:
           | I agree with this comment. The FUD on HN about crypto and
           | fraud is disappointing to say the least. Impossible to have a
           | good technical discussion around cryptocurrencies because of
           | that. I'm going to start flagging these.
        
             | rantwasp wrote:
             | it's not impossible. just harder. also, remember that hn
             | has a bit of an echo chamber effect. I've been downvoted
             | over time for expressing unpopular opinions that turn out
             | to be mostly true. i don't care. i'm here with an open
             | minded and will listen to the other side arguments.
             | 
             | X is dangerous and must be stopped is not an argument. You
             | need to articulate why it's dangerous and exactly what you
             | mean when you say that and when you say it must be stopped.
             | 
             | also, crypto is not going anywhere. If you cannot see that
             | maybe you should start looking into it a bit deeper
        
         | dang wrote:
         | Ok, but this response has such a reflexive, repetitive,
         | generic-indignant response to every remotely related topic that
         | it is now 100% predictable, and that makes it off-topic for HN.
         | We only want intellectually curious conversation here, and
         | curiosity and predictability are antithetical.
         | 
         | https://news.ycombinator.com/newsguidelines.html
         | 
         | I absolutely don't mean to pick on you personally--it's a
         | systemic problem. Also, threads are a co-creation of comments
         | and upvotes, and reflexive upvotes are by far the bigger
         | problem.
         | 
         | If you or anyone wants further explanation about what we
         | are/aren't hoping for in HN threads, the following principles
         | and the associated links should help:
         | 
         |  _Curiosity withers under repetition_ :
         | https://hn.algolia.com/?dateRange=all&page=0&prefix=false&so...
         | 
         |  _Generic discussion is not interesting, at least not on
         | internet forums_ :
         | https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor...
         | 
         |  _We want reflective rather than reflexive conversation_ :
         | https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor...
         | 
         |  _Diffs are what make an HN conversation interesting_ :
         | https://hn.algolia.com/?dateRange=all&page=0&prefix=false&so...
        
         | mssundaram wrote:
         | > Cryptocurrencies must be stopped, there is absolutely NO
         | benefit to having them.
         | 
         | I don't think that they're perfect, or that they're good for
         | any and everything, but your statement is hyperbolic.
        
       | rowaweigh wrote:
       | Can someone explain what is proof of history? I tried to read the
       | white paper but don't understand what PoH is supposed to achieve
       | or how it interacts with proof of stake.
        
         | SheinhardtWigCo wrote:
         | I tried to read the whitepaper too. Either I'm really dumb or
         | it's total nonsense.
         | 
         | "Proof of History" appears to mean that trusted verifiers
         | maintain the network.
        
       | ubavic wrote:
       | I don't even know what this article is about, but I noticed
       | digits of the p.
        
       | darkotic wrote:
       | they got the whole pi
        
         | [deleted]
        
       | bobthepanda wrote:
       | What's the practical difference between this and issuing shares?
       | Like, can you just issue coins at a 1:1 ratio to shares to skirt
       | securities regulations? It smells fishy.
        
         | _rpd wrote:
         | > The token sale, which was completed earlier this year, was
         | only made available to off-shore investors
         | 
         | There does seem to be some regulatory testing going on here.
        
         | miohtama wrote:
         | Shares have dividend, control (voting), information and
         | litigation rights in a company.
         | 
         | Tokens often have dividend (through staking and different risk
         | taking model than shares) and voting rights. You have way less
         | legal protection.
         | 
         | Because the system, e.g. Solana, is decentralised and all
         | information is public (in the optimal case), there is less need
         | for information and litigation rights. All market participants
         | can have, more of less, the same information.
        
         | dan-robertson wrote:
         | Plenty of coins (particularly those that go through an ICO)
         | _may_ be considered to be securities by the SEC.
        
       | dQw4w9WgXcQ wrote:
       | Interesting. This seems to complement the recent $100M Arrington
       | XRP investment into Algorand
       | 
       | https://www.algorand.com/resources/news/arrington-algo-growt...
       | 
       | You know the game's getting serious when the sharky VC's smell
       | their new blood money in the water and start tossing around 9
       | figure stacks.
        
       | narag wrote:
       | This is confusing. The news seem to be twofold: the company got
       | funded using the very same platform they build.
       | 
       | It's both about crypto and a bit cryptic.
        
       | Aeolun wrote:
       | This sounds _exactly_ like Ethereum. What makes this so unique.
       | 
       | Also:
       | 
       | > biggest crypto hackathon
       | 
       | 100, instead of 50 participants I'm sure.
        
         | lopatin wrote:
         | Being able to do 50,000 tx per second with fees at fractions of
         | a penny is what differentiates this from Ethereum. This makes
         | things such as truly real time, decentralized exchanges
         | feasible.
        
       | baby wrote:
       | Congrats to Solana. Does someone understand how their consensus
       | protocol works? I heard it's quite efficient.
        
       | mattdesl wrote:
       | It's good to see more research and development funds being
       | invested in alternative consensus mechanisms beyond PoW/PoS.
       | 
       | Solana looks interesting given it's high transaction throughput
       | and novel PoH consensus mechanism - assuming it can scale in a
       | decentralized way beyond the support of its foundation.
       | 
       | Though, unfortunately it still seems quite challenging to run a
       | Solana validator (which ultimately defines the health &
       | decentralization of the chain). The current specs and docs are
       | pretty daunting last I checked; hopefully that can be improved in
       | time.
        
       | ralph84 wrote:
       | > select individual investors like Boys Noize
       | 
       | If this isn't a sign of a bubble I don't know what is.
        
         | arcticbull wrote:
         | It's worth pointing out that Alyssa Milano and MC Hammer were
         | early investors in Square haha. But then again, I mean, it's a
         | crypto business now so.
        
       | furyofantares wrote:
       | I wonder if they negotiated up from some _boring_ number of
       | hundreds of millions of dollars to arrive at pi-hundred-million,
       | or did they negotiate down to it? And was anyone advocating for
       | 420M?
        
       | dang wrote:
       | All: please don't post shallow, reflexive reactions to a story
       | like this, even if you're sure you're right. Such reactions are
       | 100% predictable (e.g. see
       | https://news.ycombinator.com/item?id=27497174), and
       | predictability hurts more than rightness helps [0]. Predictable
       | discussions are tedious and invariably lead to worse--for
       | example, tedious discussions turn nasty because that's the only
       | thing the mind has left to amuse itself [1].
       | 
       | What we want: reflective [2], specific, _difference_ -based [3]
       | responses, coming from slower cognitive processes like absorbing
       | new information and thinking about it. That's what produces a
       | discussion which hasn't been had before, and those are the
       | curious discussions. They may be less _exciting_ in the
       | sensational-indignant way, but that sort of excitement is not the
       | curiosity which HN exists for [4], and I think we all know it
       | gets boring after a while. Scorched earth is not interesting [5].
       | 
       | p.s. I know nothing and have no opinion about the topic of the
       | story; I just know HN threads and can spot a brewing disaster
       | when I see one. The last 700 (let's say) cryptocurrency-related
       | threads have all been the same flamewar. That's enough of those;
       | we're ready to move to the next exercise now.
       | 
       | [0]
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