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Three Arrows Capital has defaulted on a loan worth more than $670M

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Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#171

Post by JumpCrisscross »

asimpletune wrote: post #24
rafale wrote: post #14

Earlier quoted context omitted.

Why would u enjoy people losing their life savings? Just because they told you to have fun staying poor on the way up?

I don't think anyone should act hateful to anyone else. However, seeing that specific bubble deflate though, and a return to, I don't know, sanity, is a welcome change. It's just a shame that so many people have to suffer though as a part of that process.

It’s also, quite frankly, the market reallocating economic decision making power. After a decade of beanstalk economics, it’s reassuring to see the system at least attempting to correct itself.

I have no sympathy for the people losing money. For the young people who invested precious years into what increasingly looks like an economically useless skill set, I feel badly. That said, those who picked up technical or sales chops can likely pivot to a position above the median American’s wages.

Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#172

Post by MrMan »

mlcrypto wrote: post #123
jjoonathan wrote: post #90

Earlier quoted context omitted.

> The real problem is that swindlers have made a huge amount of money and can use that money to corrupt politicians Yes! It's not just crypto, either, this problem seems to be endemic in our political and economic power structures.

Yea who do you think benefits most from the Fed's printing press?

People in tech

Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#173

Post by anm89 »

Barrera wrote: post #164

> Prominent crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than $670 million. Digital asset brokerage Voyager Digital issued a notice on Monday morning, stating that the fund failed to repay a loan of $350 million in the U.S. dollar-pegged stablecoin, USDC, and 15,250 bitcoin, worth about $323 million at today’s prices. In other words, the $670 million that 3AC defaulted on was ~50:50 USDC…

I think you would have to know more about how the deal was structured before making these assumptions. You could hedge out directional risk in an asset while borrowing it. I think it's doubtful this position was net short bitcoin.

Or you are right, they were unbelievably naive.

Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#174

Post by JumpCrisscross »

adrr wrote: post #140
cjbgkagh wrote: post #33

Earlier quoted context omitted.

A fool and their money are soon parted. The real problem is that swindlers have made a huge amount of money and can use that money to corrupt politicians so it affects the rest of us. It’s not just the extra tax of having to care for the newly impoverished. My former local community went all in on a bitcoin scam, they made commissions on new entrants so I never heard the end of it. I only talked about it when asked b…

UK is talking about backstopping the stable coins is an example of influence. I assume they are referring to Tether which hasn't completed an audit. https://www.cnbc.com/2022/05/31/uk-plans-new-safeguards-for-...

> UK is talking about backstopping the stable coins

London’s talking about regulating and ringfencing them. Not backstopping.

Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#175

Post by secondcoming »

randomhodler84 wrote: post #139
ironlake wrote: post #92

Earlier quoted context omitted.

You are wrong. No value can be added to crypto except through fiat deposit. Publicly traded companies create value by their activity. For example, if I own a share of AT&T, the value of that share goes up if AT&T runs a successful marketing campaign to get new users to sign up. Crypto has no utility and no underlying value.

Not quite! Shares of AT&T go up because people spend fiat on buying them. The activity makes it a more attractive buy, but unless the company buys back it’s own shares they don’t go up when they make money. It’s not magic, it’s a market like anything else. Note: AT&T is a dividend share, so it has yield. Cryptocurrencies generally don’t, they are more like tech stocks. Amazon shares don’t go up when Amazon makes mone…

That's not the full story. A company's share price drops when it pays a dividend - because it now has less money. So when a company makes money its share price does go up.

SharePrice = CompanyValue / NumberOfShares

Now it's true that trading activity can affect the share price too, for example a short squeeze. But this is due to market taking advantage of a desperate buyer rather than anything to do with the company's performance as such.

Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#177

Post by gopher_space »

wjko21 wrote: post #116
mirntyfirty wrote: post #36

Earlier quoted context omitted.

I think it’s a strange part of human psychology to ignore objective reality and double down to complete ruin. It seems remarkably common and with corporate power being so concentrated at the top it seems rather easy for these situations to happen.

I think the reason is that safety nets our system provides to big businesses (especially "too big to fail" ones) incentivizes them to take risks. If you have a 50/50 chance to strike gold or loose tons of someone else's money, why not take it. If it pans out, you get a lot of bonus $$$, if it doesn't - it's no skin off your back.

I see this in my industry. Above a certain level there isn’t really a failure state that matters to an individual.

Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#179

Post by henning »

I'm sure the creditors will happily accept payment in Bitcoin in lieu of cash. it's dIgItAL gOlD except the digital gold can be copied and pasted to make a new kind of digital gold that is identical to the other gold, completely unlike actual physical gold.

Re: Three Arrows Capital has defaulted on a loan worth more than $670M

#180

Post by Hallucinaut »

jgalt212 wrote: post #99
cjbgkagh wrote: post #33

Earlier quoted context omitted.

A fool and their money are soon parted. The real problem is that swindlers have made a huge amount of money and can use that money to corrupt politicians so it affects the rest of us. It’s not just the extra tax of having to care for the newly impoverished. My former local community went all in on a bitcoin scam, they made commissions on new entrants so I never heard the end of it. I only talked about it when asked b…

> The real problem is that swindlers have made a huge amount of money and can use that money to corrupt politicians so it affects the rest of us. Exactly this. Can you imagine what regulatory capture by the NFT crowd would look like?

We're already closer to idiocracy than I thought possible before the last decade, so I'm good without an OwMyBallsCoin
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