111–120 of 131 posts
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What's the counterparty risk?
A bunch of crypto fintechs had lent to 3AC are in a spot of bother. https://www.ft.com/content/126d8b02-f06a-4fd9-a57b-9f4ceab3d...
The private sector will have to arrange any acquisition of distressed assets or they will fail and people will get hurt. Lenders will harden and be better equipped for the future. This IMO is a good thing - there is no one to save anyone and the market will deal with the consequences. I don't care about the impact on prices. Drive the weak players out and let the strong survive.
what firms are going to survive this, seems like everyone is being hit hard
The crypto community continues to speed run the history of traditional finance. This weeks lesson is that in an up market its leverage that makes you money and in a down market its the unwinding of leverage that kills you. They are also learning that interconnectedness will hurt more in a downturn. You can be perfectly delta hedged( don't care which way the market moves) and its the counter party risk that will sink…
Congratulations you are the 1 millionth person on Hacker News to say "speed run the history of traditional finance"
https://hn.algolia.com/?dateRange=all&page=0&prefix=true&que...
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https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUg... The points you're looking for: > Secured Loans (none to affiliated entities) $3,149,732,368 > Other Investments (including digital tokens) $4,959,634,446
Your link is to an attestation, not an audit, and it was performed by a company in the Cayman Islands that changed its name and is still under investigation by the United Kingdom government https://www.coindesk.com/markets/2022/01/26/tethers-new-acco...
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>Government regulation of retail finance is a feature, not a bug. It's not a bug unless you believe adults should be treated like children and not be able to take the risks they desire or face the consequences of those risks. Anyone investing in DeFi should absolutely have known the risks; it doesn't justify giving the government even more power over people's finances.
I've met enough people to be confident that adults should sometimes be treated like children.
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Not really true, collateral is decided at the end of the day and not mid day. You aren't liquidated immediately the moment your needs more liquidity. We wait till the end of the day short of absolute emergencies. I know Amaranth well being in Canada and Calgary specifically at the time:) And for tradfi a typical hedge fund gets a call and is told to post more collateral and they make real efforts to allow the fund to…
>Not really true, collateral is decided at the end of the day and not mid day. Ho ho ho - no it's decided as soon as your lender things that it needs to liquidate you, and if it does it will know that you're not going to be able to go to court to fight afterwards. A lot of nasty scenes start with someone on a phone shouting "you can't do that for another 2 hours". Yup. Yup we can.
The crypto community continues to speed run the history of traditional finance. This weeks lesson is that in an up market its leverage that makes you money and in a down market its the unwinding of leverage that kills you. They are also learning that interconnectedness will hurt more in a downturn. You can be perfectly delta hedged( don't care which way the market moves) and its the counter party risk that will sink…
Is this mostly caused by people coming to grips with the fact that "crypto" is entirely speculative with no actual value? "TradFi" at least has a real floor because "real" money (as in: currency that can be exchanged for goods and services) and "real" investments (as in: shares of companies that provide goods/services) do actually exist. Even if significant portions of the market are driven by speculation. Are we rea…
When you buy stock in a company whether is in during an IPO or new issue of stock that money is used to hire employees or build a new factory and make even more profit. That can increase your dividend and make the stock go higher. The same thing can happen when you buy the stock on the open market but the connection isn't as direct. Companies with good stock performance are able to attract better employees which will increase their profits which benefits the stock holder.
None of this happens when you buy bitcoin or ethereum. Some crypto exchanges make up their own crypto currency and offer high interest rates on those but as we are seeing most of those are turning out to be scams.
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Hopefully you can link to Tether's audit? ???
There is no audit. That's why they produced that bullshit attestation. Tether has been saying they would produce an audit since July 2021, that's a year ago! https://www.cnbc.com/2022/05/17/tether-usdt-redemptions-fuel... This is long but fascinating. Tether is a scam, it just hasn't fallen apart yet. https://crypto-anonymous-2021.medium.com/the-bit-short-insid...