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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

#471

Post by jimmydorry »

vkou wrote: post #386
dlubarov wrote: post #382

Earlier quoted context omitted.

Companies which IPO (or cryptocurrencies which ICO) and later fail have those same outcomes. Surely they're not all Ponzis?

Any company whose business plan for repaying early investors consists of bilking later investors, while producing nothing isn't going to get to IPO. But you are right, this sort of thing is incredibly common in the ICO world.

If the value of Uber went to zero overnight, would that be a Ponzi? People put money into it, and that money was used to subsidize user rides. If it went to zero, then all those investors would have nothing to show for their investment...

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

#472

Post by codebolt »

vmception wrote: post #443
jtbayly wrote: post #431

Earlier quoted context omitted.

I see you haven't given a single reason to think this actually happened. I suppose there must not be one.

Alright. Fine, I'll concede its fine to be skeptical of their actions, I just don't care enough because of the other bigger ways that it doesn't make a difference for the burned user. Okay, people are out for blood from someone they trusted that did a bunch of dumb things extremely transparently while undiscerning users chose to ignore that. So they want to find a bad opaque thing now to justify their anger and legal…

> difference for the burned user

They could've used the money to reimburse UST holders at the time the peg was broken.

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

#473

Post by vmception »

jimmydorry wrote: post #470
low_tech_love wrote: post #424

Earlier quoted context omitted.

Which is exactly what happened and we seem to agree. Thanks!

They could have used a decentralised exchange, but didn't. I guess that is telling in and of itself. The tools were there for them to use, without trust, but they weren't used.

There are things they could have done, out of those other possibilities, decentralized exchanges probably wouldn't give them the best price at those amounts, and different ways for others to frontrun them, ensuring they got an even worse price.

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

#474

Post by chrismcb »

paxys wrote: post #355
snovv_crash wrote: post #76

Earlier quoted context omitted.

Tell me, what assets exactly are backing BTC which stop it from crashing just like Luna?

Nothing is stopping BTC from crashing to zero, so why is it not crashing to zero?

Because there are enough people still buying it.

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

#475

Post by Nursie »

nl wrote: post #394
matheusmoreira wrote: post #136

Earlier quoted context omitted.

You said what happened to Luna can't happen to BTC because the BTC supply is capped. It's not. The inability to mine new BTC doesn't actually matter. The pseudobanks we call exchanges are still able to introduce numberless BTC into circulation through loans. The result is inflation and possibly market crashes in case of defaults. Really no different from what Tether and every other bank is doing. I've written more de…

In the non-blockchain space this is called "credit creation" and it absolutely is something that happens there. But this doesn't happen with Bitcoin. It's true that there are a number of DeFi apps that will loan BTC. However if you look at the loan mechanism it is different to how it is done in traditional finance. A BTC loan is done in one of two ways: 1) The original owner of the BTC is given an IOU in the form of…

> But this doesn't happen with Bitcoin.

It doesn't happen on the bitcoin blockchain. Exchanges are black boxes though, we don't always know what's going on in there.

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

#476

Post by dmichulke »

matheusmoreira wrote: post #102
eric_cc wrote: post #69

Earlier quoted context omitted.

> 'this is good for bitcoin' A total ponzi scam coin crashed. This IS good for Bitcoin. Bitcoin is not Luna nor is it one of the thousands of other garbage scam coins. The faster those coins are proven scams the better. Too many people falsely equate "Bitcoin === Crypto".. or "a fan of bitcoin is a fan of all crypto". So I'd bounce this back to you: How is Luna's Ponzi crash NOT good for bitcoin?

> Too many people falsely equate "Bitcoin === Crypto".. or "a fan of bitcoin is a fan of all crypto". It pretty much is. I can open the price graph for any coin and assume the bitcoin movements are similar. Small dip in bitcoin price? Alts get destroyed. Even ethereum gets destroyed.

I don't suppose you're saying that correlation is causation, right?

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

#477

Post by dmichulke »

snovv_crash wrote: post #76
eric_cc wrote: post #69

Earlier quoted context omitted.

> 'this is good for bitcoin' A total ponzi scam coin crashed. This IS good for Bitcoin. Bitcoin is not Luna nor is it one of the thousands of other garbage scam coins. The faster those coins are proven scams the better. Too many people falsely equate "Bitcoin === Crypto".. or "a fan of bitcoin is a fan of all crypto". So I'd bounce this back to you: How is Luna's Ponzi crash NOT good for bitcoin?

Tell me, what assets exactly are backing BTC which stop it from crashing just like Luna?

Let's make it clear that the dollar lost more often 99% of its value than bitcoin. And it never recovered.

I think this will hold in the future as well.

Or are you rather concerned with the volatility?

Because surely bitcoin crashed more often 80% than the dollar...

So pick your poison...

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

#478

Post by lottin »

whatshisface wrote: post #445
squidbeak wrote: post #425

Earlier quoted context omitted.

It could leave the Exchange Rate Mechanism which created the conditions for the run. And it did. Fiat currency always has the backing of a government, as 'fiat' suggests.

When the UK ended the ERM, they stopped backing the currency. The UK does not back the pound, the pound does whatever the market wants it to do.

Not entirely. Central banks try to ensure price stability via monetary policy.

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

#479

Post by lottin »

Strom wrote: post #383
nradov wrote: post #363

Earlier quoted context omitted.

El Salvador is a failed state about to default on its national debt. It's not a real "government" in the way that most of us would define the term.

What criteria of the definition doesn't El Salvador fulfill?

It doesn't have the resources nor a policy of "backing" bitcoin. By contrast, countries that issue their own currency have a central bank that is typically tasked with maintaining price stability, hence "backing" the currency.

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

#480

Post by matheusmoreira »

dmichulke wrote: post #476
matheusmoreira wrote: post #102

Earlier quoted context omitted.

> Too many people falsely equate "Bitcoin === Crypto".. or "a fan of bitcoin is a fan of all crypto". It pretty much is. I can open the price graph for any coin and assume the bitcoin movements are similar. Small dip in bitcoin price? Alts get destroyed. Even ethereum gets destroyed.

I don't suppose you're saying that correlation is causation, right?

Nope. Just that I wouldn't bet on any alt being uncoupled from BTC.
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