Response to “Bancor is Flawed”
Eyal Hertzog

I’m one of the haters, mostly for the concept of hidden caps, and then the excuse to blow by it for far more than your advertised time. But ignoring that, it appears to me that your concept of market making shares many of the assumptions and flaws of the portfolio insurance approach that melted down in 1987 — theoretically good, but broken when the assumptions of option theory…such as having continuous markets and being a price-taker, via a price maker (see Black-Scholes original work)…are shown to be not the case in real life.