Adam Smith’s theory on the invisible hand of the market suggests that everyone benefits when individuals pursue their own self-interest in a free market. However, recent news stories highlight examples where greed, unethical behavior, and conflict of interest may overshadow the benefits of the invisible hand.
1. Mr. Beast, a popular YouTuber, has been accused of insider trading and being involved in cryptocurrency scams. He allegedly made around $23 million from his crypto involvement since 2021, with nearly $20 million coming from tokens received from the Superverse team and then dumped after advertising them to his fans.
2. The centralized exchange Kraken received 25 million OP tokens from the OP Foundation, which could be seen as an attempt to bribe the exchange to become a part of the Superchain. This brings into question whether projects like Kraken are genuinely interested in the Superchain’s technological advancements or if they are merely seeking financial gain.
3. Eigenlayer, a protocol allowing users to stake their already staked tokens, has hired Ethereum Foundation researchers as advisors. This raises concerns about potential conflicts of interest due to the non-profit nature of the Ethereum Foundation. In summary, recent news stories suggest that the invisible hand of the market, as described by Adam Smith, may not be as beneficial as originally believed, as greed and unethical behavior can overshadow the potential benefits of a free market system.
