alt Hacker NewsThe incentives are the same. Rug-pulls just make it faster to cash out.
> There’s no way to cash out.
There are precisely two: Go for an IPO, or get acquired by a major tech firm.
Both of these run near-exclusively on hype. So long as the company isn't showing actively fraudulent numbers, you can IPO with a terrible product that doesn't turn a profit.
It's not just that crypto lets you cash out faster - it lets you do it with zero notice, accountability, or diligence.
Startup exits (IPO or acquisition) often have a big chunk of hype associated with them. But often the hype is backed by factual numbers of revenue or user-base. Even if it's pure hype, there will be mountains of legal paperwork. Hundreds if not thousands of hours spent by professional lawyers checking that whoever is putting up the money really is getting what they're paying for, even if what they're buying is a dream. If not, somebody has broken the law (fraud) or a shocking amount of incompetence has occurred. Your typical crypto scam thrives because there are no such procedural guarantees.