Three Arrows Capital has defaulted on a loan worth more than $670M • Hacker News Board

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

#221

Post by dudeinhawaii » Mon, Jun 27, 2022, 10:12 PM UTC

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…

Most of what you mention seems to be loosely related to fintech. There's nothing wrong with that but it doesn't match your previous comparison to the internet.

If phrased in reverse, what would you lose if you lost the Internet? Now, what would you lose if crypto as a tech disappeared? It seems more akin to a niche technology than a transformational one (at the moment anyway).

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

#222

Post by codehalo » Mon, Jun 27, 2022, 10:20 PM UTC

paywallasinbeer wrote: post #5

For anyone else enjoying the crypto meltdown, might I suggest the subreddit /r/buttcoin? It's quite enjoyable. https://old.reddit.com/r/Buttcoin/

No need to go there when 99% of HN comments provides the same material. And I wouldn't call it enjoyable. The comments are the same as when Bitcoin was $100. Frankly, I'd call it ignorant.

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

#223

Post by RC_ITR » Mon, Jun 27, 2022, 10:21 PM UTC

throw10920 wrote: post #213

RC_ITR wrote: post #210

Earlier quoted context omitted.

Click on the time stamp to any comment, then click flag. 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).

There's no "shaming" happening. My remarks were about the subject of the comment , not an attack on the poster (who is anonymous anyway). I already flagged the comment. The point in adding my own was to help set standards for HN, which both serves the purpose of allowing the poster to realize why their comment doesn't mean HN standards (if your comment gets flagged and dead and it's not clear why, that's not helpful…

Ok, maybe to be a little more direct then. You are incorrect, that comment did not violate any of HN's guidelines. Just because you disagree does not make something unthoughtful (as evidence by it not being removed post flag).

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

#224

Post by [deleted] » Mon, Jun 27, 2022, 10:27 PM UTC

CoastalCoder wrote: post #8

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…

[deleted]

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

#225

Post by theknocker » Mon, Jun 27, 2022, 10:32 PM UTC

No post body was provided.

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

#226

Post by daniel-cussen » Mon, Jun 27, 2022, 10:36 PM UTC

TheOtherHobbes wrote: post #153

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 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…

The problem with fintech is it is about integrity, and cashing out on integrity is generally counterfactual. Like cashing out on Idealism. Well if it's strictly cash, it can be done, like if there's no interest in prostitution of the resources, merely a form of liquidity and cooperation, yes.

But to buy a Lamborghini? Only with an excellent, satisfying reason.[1] Like anything. Are you a man who wants to have sex with a girl who is underage? You can, if you marry her. But she's not an adult, so there's no possibility of a prenuptial agreement, you can marry her if you can accept that.

"Half."

--Eddie Murphy

[1] And not in the way people imagine it, like the hedonism of the noughts, showing off like that horrible show "MTV Cribs." Yeah they're literally cribs, not masochists like a real man ie fasting and running track and field. That's exactly what they are, cribs for babies. And then, on a recurring reddit post, they tell you all those cribs you saw were fake, when really many of them were real--telling you on blogs that "only Red Man's crib was his true living conditions"--just pulling the rug under you. They filmed actual places, they were all different, they didn't have the tech to fuck with that back then. Yeah they rented some houses for a week, but those houses were still meant to be cribs for babies. And it's a demonic show--a demonic channel--yeah it looks like MTV is beautiful but...no yeah suppose they're beautiful, that's the fastest way to learn what's up.

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

#227

Post by adam_arthur » Mon, Jun 27, 2022, 10:38 PM UTC

2-718-281-828 wrote: post #110

Any news on Evergrande? I thought the world was supposed to go under last year ...

Many Chinese property firms are distressed now, it remains to be seen how it ends.

Here's an Evergrande bond that's trading at a 90% loss, implying chance of total failure/default is quite high: https://markets.businessinsider.com/bonds/china_evergrande_g...

Of course, the Chinese government has a lot of power to try to socialize the losses and salvage things. When you have a spiderweb of liabilities that are jointly depended on, it's difficult to intervene and find a clean resolution, despite the gov having the authority to do so

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

#228

Post by dang » Mon, Jun 27, 2022, 10:42 PM UTC

Three Arrows Capital reportedly facing insolvency - https://news.ycombinator.com/item?id=31784602 - June 2022 (377 comments)

Battered Crypto Hedge Fund Three Arrows Capital Considers Asset Sales, Bailout - https://news.ycombinator.com/item?id=31777441 - June 2022 (125 comments)

Crypto hedge fund Three Arrows fails to meet lender margin calls - https://news.ycombinator.com/item?id=31769163 - June 2022 (1 comment)

Rumors Swirl About Financial Stress at Three Arrows - https://news.ycombinator.com/item?id=31748345 - June 2022 (2 comments)

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

#229

Post by xiaolingxiao » Mon, Jun 27, 2022, 10:43 PM UTC

joseph8th wrote: post #204

zeven7 wrote: post #96

Earlier quoted context omitted.

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.

Oh boy, have I got a story for you. 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…

This should be a movie.

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

#230

Post by adam_arthur » Mon, Jun 27, 2022, 10:44 PM UTC

chasd00 wrote: post #150

2-718-281-828 wrote: post #110

Any news on Evergrande? I thought the world was supposed to go under last year ...

The thing about that is the Chinese government can just declare it’s no longer a problem and then it’s no longer a problem. Just like they can solve Covid outbreaks through starvation, separated families, and doors welded shut. When you’re free from morality or repercussions then all problems are easily solvable.

They can't really do that because Firm A may depend on Firm B's payment to stay afloat. So you can't just say Firm B doesn't have to pay A and all is well. Also if a Firm defaults on its debt obligations, nobody will choose to lend to that Firm in the future.

Certainly it still may be possible to untangle the situation by shifting losses to those who can bear it (socialize them), but it's not as simple as you make it sound. Have to work out a whole graph of dependencies.

Lehman Brothers had something like $50T of value in underwater derivatives. Good luck solving that