Why DNMs are a poor business model

I can't help but wonder if the Evo exit wasn't at least partly a self-fulfilling prophecy. Everyone was constantly saying it's just a matter of time before they pull an exit scam. Well maybe if everyone didn't yak about it so much, it might not have happened. Suppose you are running a DNM. At first it's cool, but it is hard work, you are dealing with endless complaints from buyers and sellers, because you can't please everyone, some sellers are dicks and the buyers want you to police them, and on top of that, you risk going to prison someday. Well it seems inevitable that at some point you just say fuck em all, take the money and disappear while I have the chance, it's no longer worth the risk. Everyone seems to assume I'm going to steal it from them anyway, so fuck it.

So that is the business model, and it's a terrible one. But it's a way better option than street deals with all the risks involved, so until a better model is built, both buyers and sellers will simply have to operate under the concept of loss management....a grocery store assumes about a 5% loss just due to theft (more often from employees than customers) and prices goods to cover that.


Comments


[15 Points] DeafPirateRoberts:

Running a website for a year and then up and running off with tens of millions is an AMAZING business model, WTF are you talking about?

Its got to be one of the more profitable business models in existence actually


[3 Points] indicasativamix:

...Are you going to propose a solution to this "flawed" business model or...?


[2 Points] MXEMan:

Really? It doesn't seem that way to me at all. Walmart assumes you're going to steal from them -- that's why they have people checking your receipt at the door but that doesn't make me steal from them. That logic works, IMO, only if you're already a thief.

Which I understand the Evo guys were.


[2 Points] SpecialAgentDildo:

This whole thing is playing with fire daily anyway. There will always be a point where it will come to an end. Either LE takedown, scam, hack or like BMR it will shut down with notice. Is was a nice run for both the vendors and buyers that lived daily like that was going to happen they made a lot of money. For the people that started to believe they were on amazon or ebay it was a wake up call.


[2 Points] L-U:

I think what OP means is it is not a sustainable market model.

As a community we are looking for consistancy, longevity, and some level of integrety.

The current DNM market model has absolutly no incentive for the developer/admin to keep the service running long term.

The commission will only just offset the risk of running such an enterprise. The current model is to create a popular market and then steal all the BTC you can before you get arrested.

Other option is wait to get arrested.

Its not escrow that provides the safety to buyers, its the feedback of the community.

Anyways -we got a private store on the way....

L-U


[1 Points] bv560b074:

The DNM exit scam is just a reflection of the times. Make the money fast and run. Greed Is Good said Gordon Gekko. But greed comes with a price that is ultimately higher than the the reward. That's not sermonizing, that is an economic reality. When the richest 1% have taken 99% of the largess, that is not sustainable. It is no longer a moral issue, a political issue, or an economic issue. It is now a national security issue. The resources have to be re-balanced across the population, or the country will cease to function. People accuse Obama of being a closet Socialist. He isn't, but he knows Socialism is inevitable. That re-balancing will be done by force if necessary. And because of greed, and the no-holds barred, get rich quick at any one else's expense mindset, your grandchildren will not be living in the USA. They will be living in the USSA, and they will be told how much they are "allowed" to own. And if you don't think some kind of moral code exists on the DNMs, you need to look at what is happening. People and exchanges are tracking the stolen coins, and refusing to exchange them for dollars, those coins are in the process of being quarantined. DNMs have been compared to the wild west, but just because the Sheriff ain't around doesn't mean there won't still be frontier justice.


[1 Points] motsanciens:

Actually, a good entrepreneur always has what's called an "exit strategy." You build up business, sell it or liquidate when it's at a high value, and move on to the next idea.