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TikToker makes ‘scamcoin’ as a joke and within an hour it’s worth $70M | Hacker News

news.ycombinator.com · 10,295 words · saved by 1 readers

- Buy your own painting for $20 million, and imply that your other paintings by the same artist are also worth $20 million.

How this works: You have 1 billion coins. You sell 100 coins to someone for $100. Now you have nearly a billion dollars (market cap). But, do you really? Actually, you don't. Not if nobody is willing to pay you for the rest of the coins. The market cap is a bad estimate when the actual liquidity is small ($100). When you try and sell the rest of the coins, the market cap bubble will normalize. Economics Explained talked about something similar w/ art. [1] - Buy N paintings form one artist for $1 million USD a piece. - Put 1 painting up for auction. - Have coconspirators bid the painting…

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