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Discussion in 'The Mainboard' started by Nantucket, Jan 29, 2017.
One of the reasons why banks that take non institutional deposits can’t have trading arms
Least surprising news ever. They were dead in the water months ago. FTX stepped in to "save" them, which in hindsight was just stepping in to cover FTX's own ass and keep the game going. Now that FTX is insolvent, blockfi is naturally dead as well.
Was blockfi the place paying huge interest to keep your coins there
looks like FTX.US probably in trouble too
How fast will institutional investors be dumping their crypto if they haven’t already?
Think in general they’ve probably been neutral/short since Luna anyways.
Yes. Legit most of this house of cards collapse can be traced to and blamed in part on the SEC not approving a spot etf. The gbtc premium created massive risk taking and yield chasing that can be directly tied to 3 arrows capital and blockfi blowing up, which in turn can be tied to alameda and FTX blowing up. Of course, all those fraudsters and bad actors have their own fault. But the regulatory landscape isn’t helping.
Who is blowing up next
>digital tulipmania comes crashing to earth
who, besides everyone, could have predicted this?
- Fuck the fed. Unregulated wooooo
*things that happen in unregulated space happens*
- Fed's fault
Well they’ve been working closely with the guys that just misused 10B user funds, so seems like they’re definitely part of the
Crypto.com, nexo, any other lender in the space using leverage on customer funds to offer yield.
so who’s gonna survive? Coinbase, Binance, kraken?
Coinbase should be fine as a us regulated public company. Kraken should be fine.
Talk that binance has plenty of skeletons in its closet, but I don’t know enough about that. FTX collapsing has a lot to do with the fact that it was an off shore unregulated company that commingled customer funds with its “sister” trading arm.
The tulip stuff is lazy, although I will agree that 99.9% of crypto is worthless and will trend towards zero. FTX blowing up is far from the first financial company to blow up on poor risk management and/or general fraud. See: global financial crisis.
plenty of this will also be built out through regular financial institutions regulated in the US. Fidelity has been pushing forward on it for years. BoA or some other big one I’m blanking on just got approved as a custodian.
Also Swan is a cheap and solid place to buy solely btc by all indications. River too. I personally buy through Kraken and occasionally Coinbase.
this is not an excuse for it (the restrictions when going from public to private should be insanely strict), but this is maybe the literal most common job path
kind of doubt he was LEAD counsel but that's getting pedantic
There are pretty wild conspiracy theories flying obviously, but there are quite a few coincidences that definitely are weird.
a lot of people just got cleaned out, a lot of motivated reasoning in a space prone to conspiracy theories and a libertarian bent
This very well could be true but need to see more than "a lawyer used to work for Gensler". Going to be an interesting case to follow. Just funny to me to see so many blaming the fed after years of unreeeeeguuuuullaaaaateeeeed rhetoric.
I missed this
This is generally not a good sign
Publishing your reserves is a bad sign?
They are only similar so far as both failed and were big.
Leverage says hi
Yelling “leverage” doesn’t make stuff similar. It is an indicator you don’t have any clue what you are talking about.
Yeah LTCM wasn’t straight up stealing their clients money.
Never said they were. The alameda, 3AC, and related blow ups in crypto are similar to shit that happens in tradfi all the time. Bunch of degen traders thinking the game goes on forever. Same shit happened in the UK a month ago; only reason hedge funds and pensions didn't blow up is because the central bank stepped in. GFC same shit. Only difference between crypto and tradfi is that the tradfi contagion sometimes gets contained by central banks stepping in. In crypto, they get wiped out.
The gang learns about intra class dynamics. Some already going full antisemitism. Who could have predicted this
God damn, this is a great post.
Scarmucci's skybridge fund likely blows up or is a mess due to this. Believe FTX has a 30% stake in it
At least folks that got financially killed in tulip mania had a really nice garden the next spring.
Link below contains the bankruptcy filing. What a mess. SBF executed the omnibus corporate authority yesterday and posted his apology tweet thread same day. Wonder if this is him doing all that he can to make everyone whole or if it was forced
You are so far out of your element.
For sure. Crypto is definitely the first time in the history of finance that people have stolen client funds or blown up due to poor risk management. TuLiPPPPssssss!!!!
But please lecture me on inane points because you work in the industry.
No stop. Just let him keep going. It’s entertaining for the rest of us.
I'll play along. Dear DollarBillHokie, please explain how the GFC blow up contagion, the UK bond market crisis hedge fund blow up contagion, and 3AC/Alameda blow up contagion are all materially different. On an unrelated note, if you'd like to draw other parallels between stealing customer funds, I think Madoff and SBF would be a fun place to start.
Looking forward to the answer!
The copium crypto bros are inhaling is amazing shit
here's some of my coin ideas, hoping that TMB's premier crypto experts like Gallant Chad Morris can tell me if they're viable.
onecoin: it's a coin we mint where there will only ever be one. Since the supply is capped at one, the value of the onecoin will appreciate infinitely. We use the blockchain to make it so that it can't be moved between wallets for less than $1 more than the last sale price.
hot potato coin: Whoever ends up with the hot potato coin at a random but predetermined interval wins some sort of lottery based prize. gotta figure out the rest of the ruleset for incentivize people to buy and sell the coin. Maybe instead of winning something, it destroys your crypto wallet if you hold onto it too long.
cointagion a new zombie based crypto lottery
Cliffs on ftx and their CEO
They had a trading firm that went tits up and they used like 10B of customer funds to try and make it back.
imagine you saved your money in user1500 & penguin the duck company bank to keep it safe. Then imagine that they used the bank's money to invest everything in pictures of cartoon apes. Then imagine they lost all the ape money and stole your deposits to pay back the ape losses. then imagine the bank collapsed.