Last month, millions of viewers tuned into HBO for the premier of the final season of Game of Thrones. Game of Thrones offers an intimate look at the consequences of using backroom dealing to pursue an outcome in a competitive setting and fans of the show await with anticipation to see who will finally rule Westeros. But one need not look to television to find such a battle for power—just look to the crypto market. Every investor is vying for the throne (or in this case, a maximized profit) but not all players are made equal. Those with better social ties or monetary power can more easily enter into coalitions and create backhanded deals to achieve a better outcome.
As in Westeros, the crypto landscape does not behave according to Nash equilibrium. There are too few individuals controlling the fate of the market, making it difficult for others to fairly pursue their own rewards. However, if Nash equilibrium were present, these impediments to the pursuit of individual reward would be eliminated….