Interesting move in light of current "crypto is dead" sentiment in many corners - hn included
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Goldman Raising $2B to Buy Distressed Celsius Assets
131–140 of 147 posts
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#132If I was a Goldman shareholder I'd be quite alarmed by this. What productive assets will they be getting for this money? Hard assets or just more coins?
That's not how it works. Goldman is soliciting money from private clients to buy the distressed assets. They will receive a fee for this. Goldman is not putting their own capital at risk.
The assets are likely coins or stablecoins at a deep discount to market (80%+).
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#133Honestly I am surprised we are not seeing violent acts against people running these companies (Celsius, terra, etc). I would be beyond furious if I couldn't withdraw my assets from this scam.
People who invest in cryptocurrency are doing just fine. They may have lost a large portion this money, but the fact they even have money to put into crypto means they are able to afford food, rent, etc. Losing money in cryptocurrency is a first-world problem, no one is going to commit violent acts over losing their side/play money.
I personally know someone who lost everything to a risky investment / investment scam. Not crypto, the traditional kind. They borrowed money from friends and family, their primary residence is mortgaged, and their net worth is deep into the negative.
That you somehow believe everyone losing money to investment scams is responsibly investing only an appropriate portion of their side/play money tells me you know very little about this space.
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#134It's taken me a while to understand this but a very common cycle for tech is: 1)Startup founder gets and idea and develops it. 2)The startup develops the tech and finds a market for it 3)The Startup becomes successful 4)The market falls apart and the founder can't guide the startup thru the difficulties 5)Start up is in distress or fails 6)An MBA type comes along buys everything at a deep discount 7)The new manager r…
I’ve seen a couple examples of a somewhat opposite scenario where founder does well, sells to MBA for a lot, business struggles, founder repurchases for much less, then brings business back to profitability
Steve Jobs?
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#135Anybody trading the Celsius token? I had been expecting steeper dips so I missed that 600% flip. Not exactly my perfect storm for buying a dip, I usually wait for an information asymmetry in my favor, but shoulda just taken a slightly smaller position.
There will always be shouldas, just as there will always be more opportunities.
Absolutely, that’s my philosophy too!
I was just watching this one so closely to begin with
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#136[deleted]
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#137If Goldman are raising money from investors it's probably because they think they can charge those investors for advising on and structuring a deal. It doesn't mean Goldman are buying Celsius. It's only a vote of confidence in Celsius to the extent that it means Goldman think they can find people who want to buy it and who will pay an investment bank to do so.
$2B for what was suppose to be $12B of AUM. Doesn’t sound like a vote of confidence. Question is what priority are funds distributed. Depositors are unsecured creditors. Are there secured creditors that would be before them?
You can bet the highest priority will be to Goldman, with anyone else coming after.
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#138It's taken me a while to understand this but a very common cycle for tech is: 1)Startup founder gets and idea and develops it. 2)The startup develops the tech and finds a market for it 3)The Startup becomes successful 4)The market falls apart and the founder can't guide the startup thru the difficulties 5)Start up is in distress or fails 6)An MBA type comes along buys everything at a deep discount 7)The new manager r…
I've been in tech startups for 20 years and have never seen this pattern or heard of it. What is even one example?
MBAs notoriously do not fix things. They usually run them into the ground.
Sometimes VCs will replace founders with experienced execs to try to control costs before a sale, but I haven't seen examples of this where they fix the product or find the market fit. They usually just fire people and try to get the financials to look better.
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#139Earlier quoted context omitted.
> With FTX and now Goldman buying up assets from dying crypto companies, it looks like a bigger crypto crash will now start to hit the rest of the financial markets. Why?
Those companies have connections to the broader financial markets. The traditional thought was that crypto could do what it wants because it's a fairly insulated silo. If it fails, nothing of value fails with it. If it is going to contaminate the rest of the financial system, we are going to need to shut down the shenanigans very fast.
$2B is chump change lol, Bill Hwang/Archegos blowing up in 2021 cost banks $10B in losses.
Crypto is hilariously tiny compared to the actual world of finance. SPY (a single ETF) does as much dollar volume in a single 7.5 hr trading day as the entire crypto market does in 24h, and the entire crypto ‘market cap’ is worth less than half of Apple, one company.
Re: Goldman Raising $2B to Buy Distressed Celsius Assets
#140Earlier quoted context omitted.
The good name of Goldman Sachs, lol. The only people who don't find the vampire squid's name toxic, are those who only care about money to the point that these sorts of things never would have bothered them.
Except for #4, 5, 6, and 17, everything on this list is a con against their own clients' money: https://en.wikipedia.org/wiki/Goldman_Sachs_controversies So, no, there is no "only care about money" exception for distrusting them. Interestingly, in 2008 there was somebody recommending their clients buy shares that they were selling themselves. I misremembered and looks like it wasn't them. Now I'm curious what investm…
It was Citigroup.
From the opinion: This was accomplished by Citigroup's misrepresenting that the Fund's assets were attractive investments rigorously selected by an independent investment adviser, whereas in fact Citigroup had arranged to include in the portfolio a substantial percentage of negative projected assets and had then taken a short position in those very assets it had helped select.
Opinion: https://casetext.com/case/us-securities-exchange-commission-...