Money 2.0 Stuff: Reverse racketeering

What you won’t find from the Mafia is an invoice for extortion. No, the Mafia will come to your bakery and say “Hey, you there with the hat, it would be a shame if someone were to burn all your bread” or something. Then they say “Hey, you know what, why don’t you pay us a monthly fee and we’ll make extra sure that your bread doesn’t burn down.” Now, what’s really happening here is racketeering but don’t call it racketeering! Call it bread fire insurance or something. It sounds more legitimate, or at least that’s the idea. 

In the cryptocurrency industry, there’s this slightly odd custom in which these dynamics are diametrically reversed: