201–210 of 295 posts
I really don’t understand the business model of making massive fiat loans to “firms” to buy bitcoin. If crypto goes up, you get a small amount of interest. If crypto goes down, you lose everything. What? Lol. Just spend a fraction of the sum on bitcoin and do something safe with the rest. What was the plan? Edit: I guess when someone has “20 billion dollars” a 700mm loan doesn’t seem like a big risk.
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Default means that you are or have been technically deemed incapable of making any further payments. This includes repaying the principal outstanding. You're confusing any potential amount ultimately recoverable in insolvency with some kind of imaginary ex gratia payment by a management of a imaginary going concern which absolutely doesn't exist in Ch.12. Its chapter12 in the circumstances conceived.
> Default means that you are or have been technically deemed incapable of making any further payments Nope, that's not correct. Loan default occurs when a borrower fails to pay back a debt according to the initial arrangement - it most assuredly does not mean that no further payments will ever come (or be extracted via judgement).
Any news on Evergrande? I thought the world was supposed to go under last year ...
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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.
Around 1999, my hometown (pop. ~600) fell for a conman. Like, the actual Town government, and almost everyone in it.
Pudgy, balding, middle-aged white dude breezed into town and seduced the owner of one of the motels. She kicks her husband out and starts taking Conman to town board meetings, etc. Eventually divorced husband.
Guy claims to be Hollywood connected, a wealthy promoter or agent, scouting locations for future filming, etc.
This goes on all summer, and the town manager and county administrator, and the whole board and chamber of commerce totally buy it, lock, stock, and barrel. Conman claims he can bring in some big country music star he knows. I don't remember who. I can't stand country, so why would I remember? Big star. Not Dolly big, but Boot Scooting Boogie big.
He convinced the town to foot the bill, that he would pay for everything once they had the final bill... and this podunk nowheresville town 60 miles from the nearest traffic light pays to fly this star in on a private jet, sets up a huge stage for her, and all like 50 of us that show up get a private concert. It sucked.
This whole time... Everyone in town is talking about this guy, right? And nobody is asking if he's legit. I mean, I did, but I had long hair and was a nobody, so...
Spoiler: he wasn't. Not even a month after the big concert, he disappeared with motel lady's (and her husband's) life savings, and obviously skipped on the million-odd bill for Peggy Rae or whoever TF it was.
Everyone looked like a moron. Motel lady declared bankruptcy and left town. I gloated mercilessly.
Idiots. They all voted Trump, too. Some people never learn.
> 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…
> How does a person convinced that bitcoin exchange is headed to $2.5 million take out a loan of 15K bitcoin if he actually thinks he'll be paying back it back at a higher exchange rate? Part of being in crypto involves suspending disbelief, even your own. There's also the famous saying "It is difficult to get a man to understand something when his salary depends on his not understanding it". In this case, you don't…
I always have mixed feelings when someone is warned about the riskiness / foolishness / stupidity of a course of action, and then suffers for it. On the one hand, there's a certain satisfaction or Schadenfreude in the sense of vindication. And it's pleasant to feel like my own wisdom or self-control has been validated. OTOH, I know that everyone has limited wisdom / self-control / intelligence, including me. So it se…
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…
> 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.
For anyone else enjoying the crypto meltdown, might I suggest the subreddit /r/buttcoin? It's quite enjoyable. https://old.reddit.com/r/Buttcoin/
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> How does a person convinced that bitcoin exchange is headed to $2.5 million take out a loan of 15K bitcoin if he actually thinks he'll be paying back it back at a higher exchange rate? Part of being in crypto involves suspending disbelief, even your own. There's also the famous saying "It is difficult to get a man to understand something when his salary depends on his not understanding it". In this case, you don't…
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If it breaks the rules it will be taken down.
No need to publicly shame anyone (I understand the irony, but this at least feels somewhat couched in information).