never even heard of this one too. waiting for one of the big ones to fail.
Celsius Network is pretty big
Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
11–20 of 138 posts
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#12never even heard of this one too. waiting for one of the big ones to fail.
Celsius Network is pretty big
Yeah, about that...
https://www.washingtonpost.com/business/2022/06/13/celsius-c...
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#13> A cryptocurrency lender backed by Peter Thiel and Coinbase Global Inc. suspended withdrawals, trading and deposits on its platform, citing volatile market conditions and financial difficulties facing key business partners. > The platform, Vauld, said Monday that it froze the operations after users pulled almost $200 million over the last three weeks. A sharp decline in cryptocurrency prices that began with the coll…
When an asset class increases in value for a long enough period of time there is no shortage of explanations for why it's different this time. Real estate, commodities, tech companies, it makes no difference, It's always the same.
Real estate is an outlier in your examples due to there being limited supply and people need shelter.
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#14Thiel is a smart investor but even smart investors lose money on some investments. "backed" can have many meanings. I would imagine he has some kind of stop-loss on his exposure to risk here. And indeed, its "Valar Ventures" which has invested, an indirect vehicle. Note: I dislike the guys politics, but that has nothing to do with an objective assessment of his financial investment chops. Same with Andreessen, he doe…
> My personal belief
... was just proved wrong and now I realise that billionaires can make stupid mistakes just like everyone else.
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#15Thiel is a smart investor but even smart investors lose money on some investments. "backed" can have many meanings. I would imagine he has some kind of stop-loss on his exposure to risk here. And indeed, its "Valar Ventures" which has invested, an indirect vehicle. Note: I dislike the guys politics, but that has nothing to do with an objective assessment of his financial investment chops. Same with Andreessen, he doe…
Thiel's hedge fund Clarium Capital lost a fortune.
Yes, but his position overall is still high-net-worth surely? I'd be delighted if the wunderkid of the libertarian right lost his shirt, but I suspect he's still ahead of where he was 10 years ago, and in the long run is going to continue to make a shedload of money.
Clarium lost bigtime. No disagree. He has about 5 other vehicles as I see it. His roth IRA alone is going to be fantastic.
I wouldn't use him as my financial investment agent, personally. I'm not tracking his investments, I let my superannuation fund make it's own mind up.
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#16> A cryptocurrency lender backed by Peter Thiel and Coinbase Global Inc. suspended withdrawals, trading and deposits on its platform, citing volatile market conditions and financial difficulties facing key business partners. > The platform, Vauld, said Monday that it froze the operations after users pulled almost $200 million over the last three weeks. A sharp decline in cryptocurrency prices that began with the coll…
> Oddly enough, I think US tax policy may play a factor here in motivating people to ignore the repeated and loud warnings about how this was a really, really bad idea. When you're facing massive capital gains taxes, and have an inkling that those gains will turn to losses, the idea of lending out the asset, spending the cash without incurring tax, then getting the asset back starts to look attractive.
Yeah, my Roth, and other domestic tax exempt entities trade much better with crypto. My Puerto Rico tax-free colleagues also make more holistic decisions, but are generally much better connected to begin with than normal crypto traders.
My taxable accounts definitely trade differently, I want to make long-term capital gains but I never can hold that long, except by accident. Definitely more temptation to try to use the assets as collateral to hold longer, but then you have to pay back the collateral when it gets liquidated and you still have to report the capital tax treatment on the forced sell (gain or loss). But I do like tax-loss harvesting, and before this year there was no wash-sale rule applicable for crypto, so any random panic dip you could sell and get right back in the position and keep holding, locking in an offset for things you did sell at a profit too soon.
There have absolutely been things that I didn't sell because I didn't want the tax yet. Things I couldn't use as collateral. I resorted to donating things in profit to my tax exempt entities, even if I didn't get a fair-market-value deduction (still got a cost-basis deduction, same deduction as just donating the initial cash instead of buying an investment to begin with), I was still fine letting the tax-exempt entity sell tax free and just have more cash, because there is still a massive delta between the purchase price and current price and the government doesn't get a cut (I don't get the impression that any of their security and infrastructure and courts helped in these trades, something I do factor in since I have more legal choices in which action generates a tax/revenue event for them). But I personally still missed out on simply having more money to spend. For me that's okay, slightly miss the idea of some more play money or pushing that into a dope house after paying the governments a tax, but mostly just an observation while on the topic.
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#17Thiel is a smart investor but even smart investors lose money on some investments. "backed" can have many meanings. I would imagine he has some kind of stop-loss on his exposure to risk here. And indeed, its "Valar Ventures" which has invested, an indirect vehicle. Note: I dislike the guys politics, but that has nothing to do with an objective assessment of his financial investment chops. Same with Andreessen, he doe…
> My personal belief ... was just proved wrong and now I realise that billionaires can make stupid mistakes just like everyone else.
yes. I realize this. Do you think he's poor? If you want stupid, I wouldn't put Thiel at the head of the pack, the room of stupid rich people is pretty full right now. The really stupid ones put everything into cryptos. I don't think he did this.
I upvoted you for a good rebuttal!
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#18> A cryptocurrency lender backed by Peter Thiel and Coinbase Global Inc. suspended withdrawals, trading and deposits on its platform, citing volatile market conditions and financial difficulties facing key business partners. > The platform, Vauld, said Monday that it froze the operations after users pulled almost $200 million over the last three weeks. A sharp decline in cryptocurrency prices that began with the coll…
Matt Levine always likes to say that cryptocurrencies are relearning hundreds of years of financial lessons in just a few short years. He describes the current crypto crisis as a repeat of the 2008 financial crisis.
Every single problem that cryptocurrencies face are extremely well known and studied phenomena in traditional economics. It is all very predictable.
Re: Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals
#19I've been in and out of crypto since 2014 or so but I've never been more bearish than 2021. When the majority of my Twitter feed became visionaries predicting web3 it all seemed destined for pain.
There are billions of reasons to embrace the idea of a platform shift but when everyone can see it coming a mile away they're probably either wrong or a deep trough of sorrow away from it working out.