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

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

#191

Post by adastra22 »

vkou wrote: post #121
vmception wrote: post #26

Earlier quoted context omitted.

By 2032? We need new songs, “you just got Do Kwon’d” instead of “Mt Goxxed”

Just as a reminder about how Mt Gox played out - it looks like all the people who lost money on it will receive 1:1 fiat-denominated compensation for their losses, Mark Karpeles won't serve a day in prison, and is likely to walk away with ~3 billion worth of BTC[1]. Who'd have thought that failing to operate a bitcoin exchange is a thousand times more lucrative than actually operating one! [1] If Mark owed you a bitc…

This information is out of date. The creditors took over the distribution process and are going to distribute the remaining bitcoin pro rata to creditors. Mark Karpales served about 2 years in prison.

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

#192

Post by vmception »

rglullis wrote: post #180
vkou wrote: post #121

Earlier quoted context omitted.

Just as a reminder about how Mt Gox played out - it looks like all the people who lost money on it will receive 1:1 fiat-denominated compensation for their losses, Mark Karpeles won't serve a day in prison, and is likely to walk away with ~3 billion worth of BTC[1]. Who'd have thought that failing to operate a bitcoin exchange is a thousand times more lucrative than actually operating one! [1] If Mark owed you a bitc…

That is assuming that the whole "we got hacked" is a complete fabrication. It is possible, but isn't it completely short sighted? I mean, who would change places with him? His head has a price, and he will never be able to hide anywhere in the world or spend any of that money. He is going to live the rest of his life being watched by authorities all around the world and he will have thousands of people believing he i…

The US government indicted the BTC-E founder, that indictment details the hack of many exchanges including Mt Gox.

Gox was fractional before Karpeles even bought it, due to this hack of bitcoin.

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

#193

Post by vmception »

skinnymuch wrote: post #159
vmception wrote: post #147

Earlier quoted context omitted.

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.

Yeah I was just curious and was on a phone so couldn’t dig deeper. Of course for a chump like me, 100x’ing anything like $1K would be moderately life changing (mostly short term easing of career and life pressure)

Yeah I was watching it closely and should have dropped $5k in

I love buying the dip, I just didnt like the infinite inflation. I do my dip buys when there is a better information asymmetry that I perceive because the market cant code. I’m not good at these retail meme coin rallies.

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

#194

Post by sakopov »

What's everyone's thoughts on Gemini dollar? Gemini claims [1] that GUSD is FDIC insured up to $250K and audited [2] by a third party called BMP [3]. I also remember reading that Gemini is used by a number of IRA custodians, so I'd assume that they're pretty heavily regulated.

[1] https://www.gemini.com/dollar

[2] https://assets.ctfassets.net/jg6lo9a2ukvr/VOtyB4tBb0G4FVt6Eq...

[3] https://www.bpm.com/

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

#195

Post by ChaseMeAway »

vmception wrote: post #183
TomSwirly wrote: post #170

Earlier quoted context omitted.

Oil and gas are vitally useful. They have actual value to make things and move things and power things.

> Oil and gas are vitally useful. They have actual value to make things and move things and power things. And what was the point of that copypasta? Analogies compare dissimilar things in the ways that they are alike, not the ways they are not alike. The trading patterns and supply and demand pressures are the ways they are alike, whether you respect why such pressures exist or not.

“Weak analogy

Definition: Many arguments rely on an analogy between two or more objects, ideas, or situations. If the two things that are being compared aren’t really alike in the relevant respects, the analogy is a weak one, and the argument that relies on it commits the fallacy of weak analogy.

Tip: Identify what properties are important to the claim you’re making, and see whether the two things you’re comparing both share those properties.“[1]

[1]https://writingcenter.unc.edu/tips-and-tools/fallacies/

I suspect the poster you are responding to disagrees that it is a relevant comparison, since commodities, their value, and subsequently the way in which they are traded is in some way influenced by their “vital” civilizational importance.

The implication here is that crypto does not share that crucial (for the analogy) property of vital importance, and as such the trading patterns/market forces are not comparable.

In this case is it reasonable to point out that the analogy is weak, we do not have to ignore how the two candidate comparables are different if they differ in fundamental ways.

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

#196

Post by Jabbles »

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…

> There's probably going to be a positive bounce just because markets don't move in straight lines.

To emphasize the uncertainty in your "probably", I will point out that Luna didn't bounce: https://coinmarketcap.com/currencies/terra-luna/

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

#197

Post by caffeine »

lumost wrote: post #129
lamontcg wrote: post #108

Earlier quoted context omitted.

> “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…

The fact that crypto is correlated with tech stock valuations should be raising eyebrows. Flash back a few years and the hypothesis that bitcoin would hedge inflation/fiat depreciation was standard. If BTC is correlated with equities, why not just hold productive equities?

> The fact that crypto is correlated with tech stock valuations should be raising eyebrows

Because fiat volatility in inflation/rate hikes respectively (ie the NPV of a USD) completely dominates the other factors.

The volatile leg here is the fiat dollar, and everything denominated in it is whipsawing around as its value changes.

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

#198

Post by vmception »

ChaseMeAway wrote: post #195
vmception wrote: post #183

Earlier quoted context omitted.

> Oil and gas are vitally useful. They have actual value to make things and move things and power things. And what was the point of that copypasta? Analogies compare dissimilar things in the ways that they are alike, not the ways they are not alike. The trading patterns and supply and demand pressures are the ways they are alike, whether you respect why such pressures exist or not.

“Weak analogy Definition: Many arguments rely on an analogy between two or more objects, ideas, or situations. If the two things that are being compared aren’t really alike in the relevant respects, the analogy is a weak one, and the argument that relies on it commits the fallacy of weak analogy. Tip: Identify what properties are important to the claim you’re making, and see whether the two things you’re comparing bo…

The trading patterns have been identified twice now. I’m sure its been insightful to someone.

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

#199

Post by Karunamon »

matheusmoreira wrote: post #179
Karunamon wrote: post #145

Earlier quoted context omitted.

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.

> If someone loans you BTC, the supply of BTC has not increased. True when someone does it, false when a fractional reserve bank does it. When someone loans money to someone else, money physically changes hands and there is no concept of a reserve. Banks are able to maintain the illusion of full reserves even though they operate in a state of perpetual insolvency.

Please explain the mechanism by which a "bank" is able to transfer to you an amount of BTC that they do not have wallet control over?

This is a critical difference. A bank can loan you fiat money that they do not physically have, with the almost always correct assumption that most people won't want to convert that database entry into cash at the same time.

This is not possible with bitcoin. Either the bank has the coins in wallets they control to send to a wallet you control, or they do not and can't.

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

#200

Post by vmception »

NovemberWhiskey wrote: post #173
vmception wrote: post #160

Earlier quoted context omitted.

Right, there is no takeaway, retail was making it a meme coin for the lulz and this is about volatile fun trading opportunities from people like me that have no care for the name of any asset or ticker. A buy the dip trade fueled by unverifiable rumors of a recovery plan.

"dead cat bounce" is what we call it in trad fi.

Yep, never seen a bounce with that amplitude and speed before, personally.

I love how crypto can have so many exchanges accessible simultaneously. Prices all over the place. Chart and price aggregators all over the place. Massive information asymmetries. Better to make your own pricing tools and have better information than others, the bar is quite low so its easy to get an advantage here than in tradfi.

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