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Crypto Prices Are Chaos, But Maybe That’s a Feature, Not a Bug
- The foundation of trading is based on the dynamics between supply vs demand and pricing.
- Prices are determined through trial and error and feedback from consumers.
- Crypto transactions have made commerce borderless and markets timeless.
- The open and digital nature of crypto enables rapid experimentation and iteration for building pricing markets.
- Crypto's chaos has led to undesirable outcomes like PumpFun, but it has also revolutionized markets.
- PumpFun has created a mechanism for launching new assets and tokens efficiently.
- Auctions play a crucial role in price discovery and negotiation in various markets.
- Auctions like English, Penny, Dutch, and Vickrey, have different models to fulfill unique purposes.
- Auctions have been instrumental in the experimentation and development of markets in the crypto industry.
- Volatility in crypto markets is driven by the relative and evolving nature of prices.
- To achieve the promise of blockchain and crypto, more experimentation and novel mechanisms are needed.
- As commerce evolves in a digital world, novel market mechanisms are essential for establishing fair prices.
- Building and experimenting with new market mechanisms is essential for the future of blockchain and value transacting.
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