In this guest column, Neil Singh looks at the recent success of $PEOPLE and $gm and the rise of ‘Culture Coins’. The problem of aggregation, where rational actions at the individual level lead to an irrational outcome at the collective level, is prevalent in macroeconomics and financial markets. A bank run is a classic example. The solution in TradFi is often centralized agency in the form of (government) institutions, powered by a countervailing incentive structure. In regards to the example...
