ConstitutionDAO(PEOPLE) Regular Invest

On July 15th, the Robinhood Chain token launchpad vlad.fun experienced internal sabotage on its launch day. Two external developers secretly hardcoded their own token into the platform's frontend, making it the only token visible to users and hiding all others. The core team detected the anomaly within two hours, fired the developers, and removed the malicious code. The developers claimed the action was for "clicks." They refunded approximately $15,000 in creator fees and test token profits, totaling about 7.8 ETH, to the team. An additional 4.16 ETH in protocol fees from the launch is held in a team multisig wallet. Built by a five-person team in 48 hours, vlad.fun's code was provided by the two external developers. Their last commit added the hardcoded line. When confronted, they initially blamed technical issues, but later attempted to delete the evidence before confessing. The platform is currently paused. A community member, Will Mexi, clarified he was not involved and was the one who discovered and reported the issue, having previously enabled branch protection which preserved the evidence. vlad.fun's design allows token deployment and direct listing on Uniswap V3/V4 in one transaction, with liquidity permanently locked to reduce rug pull risks. It features anti-whale measures and flexible fee routing. Despite this incident, the Robinhood Chain launchpad ecosystem remains active, with platforms like PONS gaining significant traction.

The South Korean stock market experienced an extreme crash and a wave of forced liquidations after a historic rally. In the past month alone, the entire market halted trading four times due to circuit breakers, surpassing records set during the 2008 financial crisis. The KOSPI index plummeted 32% from its peak, triggering widespread deleveraging. Over 1.2 million leveraged retail accounts faced margin calls, with hundreds of thousands fully liquidated, erasing trillions of won in investor deposits. The article details the human cost through several stories. A celebrity lamented buying SK Hynix at a peak. A 24-year-old army veteran lost his entire 200 million won savings and 2.8 billion won in paper gains after a highly leveraged bet on a single stock. In a tragic incident, a disgruntled follower of a YouTube stock influencer stabbed the博主 after following his advice led to massive losses. Even a seasoned investor saw 1.5 billion won vanish in two months. Despite the carnage, new retail investors continue to enter the market, often driven by FOMO (fear of missing out) and the perception that cash is a "waste" during a bull run. This speculative frenzy is partly attributed to President Lee Myung-bak's administration, which promoted stock market reforms to shift reliance from real estate and vowed to boost the KOSPI. However, soaring property prices have also pushed young Koreans toward high-risk, leveraged stock investing as their only perceived path to wealth accumulation. The report concludes that while the market's future is uncertain, this cycle of policy-driven booms, leveraged speculation, and devastating busts is a recurring phenomenon in financial history, with Korean youth being its latest participants.

AI Is Eliminating 'Entertainment for the Poor' This article discusses the rising cost of video gaming, arguing that AI is making digital entertainment increasingly expensive. It follows the example of a frugal gamer who, accustomed to waiting for discounts and buying second-hand games, now faces a new reality. Video game consoles like the PS5 Pro and Switch 2 are increasing in price post-launch, breaking the traditional pattern of降价 over time. Game prices are also rising, with major titles like GTA 6 launching at $80. Furthermore, the industry is moving towards eliminating physical media, exemplified by Sony's plan to stop PS disc production by 2028. This shift blocks the二手 market, a key cost-saving avenue for players. Even Valve's anticipated affordable Steam Machine launched with a high price and disappointing specs. Manufacturers cite inflation, supply chain issues, and rising development costs, but a core driver is the AI boom. AI data centers now consume semiconductor and memory resources once prioritized for consumer electronics like game consoles. This competition from a more profitable sector drives up hardware costs. Additionally, developing modern AAA games with massive teams over many years is astronomically expensive, pushing publishers towards digital-only distribution and subscription models to secure recurring revenue. The article suggests this trend extends beyond gaming. Video streaming, music platforms, cloud storage, and AI tools are increasingly locked behind complex subscription tiers. While AI promises future benefits, it is currently making digital entertainment and services more costly. The era of progressively cheaper, accessible online entertainment is ending, forcing consumers to pay more upfront for future technological promises.

Australia's eSafety Commissioner is suing Telegram in Federal Court, alleging the messaging platform failed to comply with the Online Safety Act by not removing pro-terror content after user complaints. The regulator's investigation claims certain reported material remained visible for weeks and that Telegram did not adequately prevent its spread, including known extremist footage. Potential fines could reach AU$54.6 million. Telegram posted a "freedom of expression" video but issued no formal statement. This case increases global scrutiny of Telegram's moderation. Simultaneously, Russia's FSB charged CEO Pavel Durov with facilitating terrorism for allegedly not removing channels used by Ukrainian intelligence and extremist groups. Durov also faces charges in France related to illegal content distribution. He has criticized government actions as threats to online privacy and free exchange.

This article argues that the SK H力士 2x Leveraged ETF (7709) is fundamentally a negative expected value (EV) product, rather than simply a "double SK H力士" investment. Its core issue stems from its daily rebalancing mechanism to maintain a 2x leverage target. After a price move, the fund must buy more after a rise or sell after a fall to readjust its leverage, creating a systematic pattern of buying high and selling low. This introduces a "delay loss": it always reacts to past price changes, missing potential gains from adjusting earlier during an uptrend and suffering greater losses from adjusting later during a downtrend. While more frequent intraday rebalancing would improve returns in strong, smooth trending markets by reinvesting profits or cutting losses sooner, it also dramatically increases volatility drag (frictional losses) during choppy, oscillating markets due to more frequent high-buy/low-sell trades. The author draws a parallel to an option seller who delta hedges (short gamma), which involves similar "buy high, sell low" dynamic hedging. However, unlike an option seller who receives upfront premium (IV and theta) as compensation for this risk, the leveraged ETF investor receives no such compensation. Instead, they bear all the path-dependent volatility decay, plus additional costs like swap/derivatives financing, management fees, and trading slippage. Thus, the product's return profile can be framed as: 2x directional return minus realized variance drag minus financing costs minus derivatives costs minus management fees minus transaction costs. For the investor to profit, SK H力士's price must not only rise significantly but do so in a strong, sustained, and smooth trend to overcome these inherent structural costs. High volatility and frequent price reversals are particularly damaging. The article also notes that while the ETF has no explicit liquidation line like perpetual futures, avoiding a sudden "blow-up," its net asset value can still decay towards zero over time through this combination of volatility drag and fees. For experienced traders, directly managing leverage via perpetual contracts may offer more control and potentially lower costs than this packaged, mechanistic product.