FTX Post-Mortem: Bankman-Fried Admitted The "Ponzi Business" Of Crypto Yield Farming

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I am sure many VBs have read too much on FTX in the last few weeks but I will risk another one as below.

I would like to espouse more on the "halo effect" (this person can do no wrong) and the "anti-halo effect" (this person can do no right). And really, what is the "secret sauce" to possibly allow my average capability to produce "above average" outcomes?

How VCs can avoid being tricked by obvious frauds

“human ability is normally distributed but the outcomes are power law distributed”. What this means is that just because someone builds a company that produces extraordinary outcomes, 10000x the average, doesn’t mean that they were 10000x as capable. Achievements are created from multiplicative outcomes of many different variables. So if you’re investing in a “10x founder” it doesn’t mean that they themselves are 10x the capability of everyone else, but what it means is that their advantage, combined with everyone else’s advantage, can get you to a 10000x outcome.

Where Did the Missing Money Go? Sam Bankman-Fried Says He Can Only Guess | WSJ

$40 million in donations gets you this.
You can find more of my postings in http://investideas.net/forum/
Well, one of the largest political donors to the democrats is the man himself. This shows how interest group politics work.

Whoever has the most influence monetarily has an effect on the policies (only exception are the communist economies). This is why there must be a political element in investing to know who are "the favoured child" of the country and then invest in it. Im still interested in the area of US tech because I know the US federal reserve and the ruling democrats favours it and this means their policies are geared towards protecting it

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