Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

$3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

cnbc.com

Post reply on HN
Print view View original

141–150 of 540 posts

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#141

Post by JumpCrisscross »

jpmattia wrote: post #115
dfdaffg423rag wrote: post #111

Earlier quoted context omitted.

I don't think anyone's going around using shares of Citibank stock as currency, are they? Because that's one of the many criteria that need to be true for that comparison to make any sense. Blows my mind because stablecoins could be so easy-- hold some cash and hold some US treasuries. Pocket the interest. Become rich.

> hold some cash and hold some US treasuries. Pocket the interest. Become rich. Not getting what you're saying here: Only banks should have that privilege?

> Only banks should have that privilege?

Yes, in exchange for the privilege of money creation you need tight regulations and public disclosures.

Banking left unregulated turns into this mess time and time again. You'd think people would be more disciplined about betting private money creators. But they aren't. They never are. Particularly not when their neighbor is showing orders of magnitudes of paper gains. This was true in antiquity. It was true in our era of free banking. It's proven true, again, in crypto.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#142

Post by skinnymuch »

Traster wrote: post #58
quasse wrote: post #7

I am extremely out of the loop on the latest crypto developments / schemes, but * Where did this foundation get $3B to buy Bitcoin? * Is there any proof at all that they traded it to a counterparty who actually attempted to prop up UST and didn't just run off with them?

On the second point, to be fair you can look at the UST graph and see that someone did indeed burn a tonne of Luna to support UST. It's probably impossible to really prove that every penny went to supporting it, and it's probably impossible/unlikely that Do Kwon really bankrupted himself for this, but at the very least we can say someone decided they were going down with the ship and set a lot of money on fire. Diffi…

It’s impossible Do Kwon bankrupted himself. No one is going to do something no one believes any one in crypto or Wall Street would do and keep quiet about it: be selfless, stick to your previous words that critics never believed, and not be keeping a good chunk of money for yourself.

If this happened, we will be seeing massive PR about this. Do Kwon would become a huge symbol and become a millionaire again if he actually did that and opened his life and books to scrutiny to prove everything as much as possible.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#143

Post by celestialcheese »

onlyrealcuzzo wrote: post #40
helsinkiandrew wrote: post #35

Earlier quoted context omitted.

Tether is atleast supported with real world assets (USD/bonds etc). The amount and quality of the assets might be debatable but it can't go into a death spiral to zero like Luna and UST.

Only 3.87% of Tether was backed by dollars: https://siliconangle.com/2021/05/13/tether-releases-reserve-... So it could drop pretty far.

That's a bit old - https://tether.to/en/transparency/#reports

Closer to 50% tbills and cash.

All caveated with if you trust MHA Cayman auditors.

The other 50% could be anything, and likely sketchy as they are chasing yield and extremely cagey about revealing anything about their holdings.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#144

Post by gizmo686 »

I'm confused. I understand wanting to have a reserve fund to help maintain a peg. National currencies do this as well, including selling their reserves to prop up their own currency when needed.

However, why would a stablecoin put its reserved in Bitcoin; an asset that is highly correlated with the entire crypto ecosystem, and highly volatile relative to the asset against which they want to maintain a peg.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#145

Post by Karunamon »

NovemberWhiskey wrote: post #127
eric_cc wrote: post #124

Earlier quoted context omitted.

No. There is still 1 BTC in this scenerio. When you choose to deposit your 1 BTC you've lost custody of it and somebody else has gained possession of it. All you have is a promise that you'll get it back - which is not === BTC.

You'll have to explain how that's usefully different from the fiat context.

Because there's no such thing as unbacked BTC. You either have the UTXOs pointing at an address you hold the keys for, or you do not.

If someone loans you BTC, the supply of BTC has not increased.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#146

Post by devoutsalsa »

lamontcg wrote: post #108
joosters wrote: post #4

"Sold" It's hard to show that they really sold these coins. Certainly, the LFG transferred the coins to some different exchanges. But did they truly sell them? If I was running a dodgy ponzi scheme and saw it collapsing catastrophically, I don't think I'd be throwing good money after bad trying to futilely patch it up. Much better to stash the remaining assets away somewhere and personally cash out later on. Also, “I…

> “In a sense, the market is going to take that as kind of bullish.” I mean everything is a bit oversold right now on negative emotions, both in the crypto space and in the stock markets. There's probably going to be a positive bounce just because markets don't move in straight lines. There is always the chance that something else explodes due to stress tomorrow and hits the headlines and crypto and/or stocks start m…

As I’ve been learning about value investing and growth stocks, it feels like we’re in a weird middle. Stocks aren’t cheap enough to attract the people who want to buy at a discount, and they’re not sexy enough to rally on the hype train. I don’t know what’s going to happen in the short term, and I wouldn’t really want to pretend that I do.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#147

Post by vmception »

skinnymuch wrote: post #126
vmception wrote: post #105

Earlier quoted context omitted.

You would be better off using a spreadsheet updated with your own data points than price aggregators. But that very website says the 24 hour low was $0.00001675 and the current price of $.00016 is 10x higher The reality is that the lows on specific exchanges had more zeroes than that

Sure but how much legit volume did those specific exchanges do at those price points allowing more than 50x or 100x returns?

Amongst all volume I was not particularly amused by the 15minute bars, it would have been hard to move 7 figures usd, but they could eat a 6-figure market order easily. The rest would need just a little patience.

No need for me to move the goal post to legit vs not real volume, there were some AMMs that had the same liquidity depth.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#148

Post by jandrese »

skinnymuch wrote: post #126
vmception wrote: post #105

Earlier quoted context omitted.

You would be better off using a spreadsheet updated with your own data points than price aggregators. But that very website says the 24 hour low was $0.00001675 and the current price of $.00016 is 10x higher The reality is that the lows on specific exchanges had more zeroes than that

Sure but how much legit volume did those specific exchanges do at those price points allowing more than 50x or 100x returns?

I mean this is penny stock trading at this point. It's easy to show huge theoretical returns when you don't actually have money in there distorting the market.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#149

Post by paulpauper »

latchkey wrote: post #2

I'm kind of amazed that the Bitcoin price wasn't affected more given this event as well as the larger macro events with the stock markets, Fed and inflation.

it dropped 20% over the past week and keeps falling now.

Re: $3B in Bitcoin was sold in a last-ditch attempt to save UST from collapse

#150

Post by matheusmoreira »

eric_cc wrote: post #133
NovemberWhiskey wrote: post #127

Earlier quoted context omitted.

You'll have to explain how that's usefully different from the fiat context.

First you'll have to explain to me why you would give somebody your bitcoin and allow them to give it to somebody else!

Interest. Right now Binance is offering 5% APY for BTC savings. If you give them your BTC, you'll stack sats automatically.
Post reply on HN