Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

cnbc.com

Post reply on HN
Print view View original

181–190 of 295 posts

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

#181

Post by [deleted] »

cjbgkagh wrote: post #54
rngname22 wrote: post #45

Earlier quoted context omitted.

Could you expand a bit? It sort of sounds like you're describing a small town or a social circle / social scene where everyone got involved in some particular altcoin or something and invested a ton of their personal savings into it while encouraging others to do so as well, is that essentially it? Crazy if so.

That’s essentially it, a small town where everyone knew each other and all hung out in the same bars. I didn’t pay attention to which one it was, I do remember hearing crazy interest, like >40%. I think you also got a cut from new entrants as well, so it reeked of pyramid + ponzi.

[deleted]

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

#182

Post by DwnVoteHoneyPot »

rngname22 wrote: post #45
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…

Could you expand a bit? It sort of sounds like you're describing a small town or a social circle / social scene where everyone got involved in some particular altcoin or something and invested a ton of their personal savings into it while encouraging others to do so as well, is that essentially it? Crazy if so.

There is a recent movie called Dream Horse based on true story: "Twenty years ago, one woman convinced her neighbours to buy, rear and train a thoroughbred racehorse, Dream Alliance. Now their unlikely story is relived in a feelgood film"

https://www.theguardian.com/film/2021/may/30/against-all-odd...

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

#183

Post by randomhodler84 »

secondcoming wrote: post #175
randomhodler84 wrote: post #139

Earlier quoted context omitted.

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'…

I think it is the full story. Company performance is the driver, but it doesn’t set the price. It not right to say it’s irrelevant, it is, but the most important thing is what the market is willing to pay.

The dividend price drops occurs only because the market believe this and reduces the price of their orders. It’s driven by the market responding to the loss of cash, the fact the cash was spent cannot impact share price unless there is buying and selling. The company doesn’t set the share price except for IPO.

It is compounded by Dividend Reinvestment Programs, where the dividends end up buying more stock.

Additionally, I think your equation is wrong. Company Value = assets - liabilities.

Market cap = n shares * price.

Market cap != company value.

Big tech stock is very similar to cryptocurrency. It’s all about the greater fool who will buy it from you.

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

#184

Post by midislack »

woodruffw wrote: post #154
masswerk wrote: post #151

Earlier quoted context omitted.

I don't get the hate part. There was about a single competing party who would have used that attribute, and this one proceeded to ban the associated party and to open the very first concentration camps for social democrats. We probably all know how things went from there.

Correct. They weren't a hate group, and the groups that currently use their symbology also aren't hate groups. I think the GP is probably misinformed.

They are indeed hate groups, it's a hate symbol, thanks for playing!

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

#185

Post by 100721 »

ac29 wrote: post #163
TheOtherHobbes wrote: post #153

Earlier quoted context omitted.

The problem is the fintech industry - both crypto and mainstream - exists to swindle . The biggest rewards come from crossing the line and avoiding regulation/enforcement, either by legitimate or illegitimate means (including bribing enforcement officials). Next biggest are rewards for crossing the line and delaying enforcement until you can launder your rewards to a safe haven. If you're arrested and jailed - only l…

> Mark Karpelès only received suspended sentences and spent no time in jail He was in jail from August 2015 to July 2016, if his wikipedia article is correct. The suspended sentence came after that.

I would argue that the risk:reward is still very heavily weighted toward reward.

I would happily spend a year in jail for $1bn+

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

#186

Post by pirate787 »

yieldcrv wrote: post #158
badcppdev wrote: post #32

Earlier quoted context omitted.

> Now if only there were mainstream news articles about all the things that go right in crypto. Legitimate question. What things have gone right in Crypto? I'm excluding individuals getting rich as that can happen due to gambling, etc.

> I'm excluding individuals getting rich as that can happen due to gambling, etc. The tools that allow that stuff to occur onchain are pretty phenomenal. Bridges, farms, yield aggregators, yield optimizers, AMMs, the rapid evolution of standardized classes in the codebases (really was a mess before OpenZeppelin). It is capital formation and that is valuable for many people, a lot of capital formation improvements in…

I doubt your claim about stablecoins like Tether will age very well.

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

#188

Post by jasonwatkinspdx »

Tao3300 wrote: post #69
toomuchtodo wrote: post #12

Earlier quoted context omitted.

Hot take: It’s fine when it happens to extreme hubris with paper wealth. It is not fine when it was someone unsophisticated chasing the herd who lost a meager sum that was meaningful to them. Comedy vs tragedy. Same thing with Archegos (Bill Hwang) and their rapid failure. It’s the hubris that makes it fun to poke fun, the sun blastin’ Icarus’ wings clean off. (no crypto exposure)

One of the things I noticed in the whole Terra/Luna drama is that there were lots of people on Twitter who seemed downright confused. People who didn't know where their money went or why. People who had complicated arrangements where their holdings were in the wrong kind of thing to get the 2.0 airdrop who hardly seemed to understand what they were talking about well enough to ask coherent questions. Those people mak…

Crypto marketing is now so pervasive, particularly in online spaces, that a ton of people just assume it must not be a scam.

I mean there's a streamer I follow and generally like, but that interviewed Do Kwon on their stream, just a few weeks before it depegged. I wonder how many of their followers were the ones that lost the game of musical chairs. The halo effect is real.

And that's not even getting into the craven scumbags leveraging influencer marketing, like Stake.

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

#189

Post by woodruffw »

midislack wrote: post #184
woodruffw wrote: post #154

Earlier quoted context omitted.

Correct. They weren't a hate group, and the groups that currently use their symbology also aren't hate groups. I think the GP is probably misinformed.

They are indeed hate groups, it's a hate symbol, thanks for playing!

The SDP was and is a center-left party. You can look their platform up today, and confirm that it is neither historically nor currently hateful. Their existence during the 1920s and 1930s was primarily defined in opposition to both further left and further right political movements.

(There's also no one modern group using the Three Arrows. It's a general symbol of the left, like the wildcat or the "A." It's not even clear who they'd be a "hate group" against.)

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

#190

Post by Barrin92 »

zeven7 wrote: post #96
cjbgkagh wrote: post #54

Earlier quoted context omitted.

That’s essentially it, a small town where everyone knew each other and all hung out in the same bars. I didn’t pay attention to which one it was, I do remember hearing crazy interest, like >40%. I think you also got a cut from new entrants as well, so it reeked of pyramid + ponzi.

I'm fascinated that some kind of place like this existed. I've only lived in large cities and the picture I've gotten of small towns from trips and media hasn't prepared me for the idea of a whole community that collectively buys into a get rich quick scheme.

In Utah "Network Marketing" or more plainly MLM schemes are literally the second biggest industry in the state. Strongly influenced by the Mormon culture you have stay at home moms do direct sales and multilingual missionaries using their skills for that kind of stuff. There's entire software companies that just build tools for MLM companies.
Post reply on HN