Crypto's performance is worse than even banking/housing stocks in 2008. No end in sight to the selling. People are blaming FTX, when it more likely crypto was going to keep falling anyway as the fad/bubble bursts. FTX is just more salt on the wound. BTC was already down 70% YOY when FTX failed. S&P 500 and Nasdaq up huge this week. I dunno why anyone would waste their time with crypto anyway when far superior investments exist.
FTX faces potential hack, sees mysterious outflows totaling more than $600M
341–350 of 890 posts
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#342Earlier quoted context omitted.
All crypto currencies are a ponzi scheme. Change my mind.
In a ponzi scheme, there is a fictitious business model that's purported to be turning a profit, and its lack of profit is hidden by secretly using new inflows to pay off old investors. In crypto, none of that is hidden. It's widely known that dollars cashed out by earlier investors come from the coffers of later investors. Since e.g. Bitcoin doesn't deceive people about being a profitable company, it's by definition…
"It can't be a Ponzi because they're honest about it being a scam right up front"
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#343Crypto's performance is worse than even banking/housing stocks in 2008. No end in sight to the selling. People are blaming FTX, when it more likely crypto was going to keep falling anyway as the fad/bubble bursts. FTX is just more salt on the wound. BTC was already down 70% YOY when FTX failed. S&P 500 and Nasdaq up huge this week. I dunno why anyone would waste their time with crypto anyway when far superior investm…
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Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#344Crypto's performance is worse than even banking/housing stocks in 2008. No end in sight to the selling. People are blaming FTX, when it more likely crypto was going to keep falling anyway as the fad/bubble bursts. FTX is just more salt on the wound. BTC was already down 70% YOY when FTX failed. S&P 500 and Nasdaq up huge this week. I dunno why anyone would waste their time with crypto anyway when far superior investm…
price of bitcoin since 2009 doing fine
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#345Regardless of whether you are pro- or anti- crypto, the collapse of FTX, SBF's bubble bursting in a rather extreme fashion, and now this hack are more nails in the coffin for mainstream support. I am no fan of crypto myself, but it's interesting to think what would have to happen for crypto to burnish its image. Would key people have to voluntarily form some sort of coordinating council and self-regulate? Would they…
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Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#346Earlier quoted context omitted.
1. Crypto and web3 is so tarnished in consumer minds, it cannot recover. The next big thing in this space needs stay away from those terms like the plague. 2. Energy has become so valuable these days and Crypto tech has become so WASTEFULLY, UNNECESSARILY energy intensive, that the next iteration needs to be as cost efficient and effective as software. Transaction costs need to begin and remain extremely low to none.…
1) To recover, a crypto will probably need to include specs about how the exchange should run. Exchanges have failed 3-4 times, and it seems they’re part of a currency since people keep coming back to them. So there needs to be a system where I keep having control over my coins while they’re in an exchange: ability to withdraw from the exchange, ability to approve a transaction.
Like a normal exchange, audited and run by professionals not crypto bros. A walled depository, like a normal exchange. Running within a reputable regulatory framework. Nothing new here.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#347Earlier quoted context omitted.
1. Crypto and web3 is so tarnished in consumer minds, it cannot recover. The next big thing in this space needs stay away from those terms like the plague. 2. Energy has become so valuable these days and Crypto tech has become so WASTEFULLY, UNNECESSARILY energy intensive, that the next iteration needs to be as cost efficient and effective as software. Transaction costs need to begin and remain extremely low to none.…
1) To recover, a crypto will probably need to include specs about how the exchange should run. Exchanges have failed 3-4 times, and it seems they’re part of a currency since people keep coming back to them. So there needs to be a system where I keep having control over my coins while they’re in an exchange: ability to withdraw from the exchange, ability to approve a transaction.
So, the only service you really need is something like Tether, not an exchange (as you can use decentralized exchanges). The service Tether operates--and I'm not claiming they aren't also some horrible scam, but I'm using them as the example because they are seemingly the minimal thing you need--is to act as the connection between fiat banks and decentralized chains, by supporting wire/ACH on one side and issuing a token on the other side (which they will later accept back for money). You don't need crazy complicated exchanges with their massive attack surface: you just need Tether. Now, is it possible to have a transparent Tether that you reasonably trust to be legitimate? I don't know. Maybe that's Circle--the people who do USDC, and which have been managing to compete with Tether for the most used stablecoin as of this year--as they do regular SEC filings and have fancy accounting reports? Alternatively, maybe if some large existing bank--such as Bank of America--were willing to issue a stablecoin, we'd all be willing to trust it to not be corrupt? But you really, honestly, don't need a full-blown centralized exchange for crypto to work: you just need a working stablecoin with enough easy-to-access liquidity that you can quickly buy in and out with a ton of money.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#348Earlier quoted context omitted.
People will be going to jail for this. Do not take the short term view.
Let's keep out eyes on this. It is a super lurid scenario (to use a word introduced by @dang on this posting). By "this" I don't mean the earlier bits of the FTX debacle, but specifically this draining event. The statement that "FTX apps are malware" is weird in that it implies they became malware a while back. I could see either hackers penetrating due to inadequate security, or insiders setting up for an opportune…
To be clear, even the FTX bankruptcy and the way it happened, not even taking this outflow/hack here into account, is jail worthy. The question is whether it falls under US jurisdiction and whether the defense lawyers can be paid enough to somehow avoid this, or postpone for a decade or so.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#349Earlier quoted context omitted.
No, not safe in Russia. From https://mobile.twitter.com/kamilkazani/status/15791389474472... "In contrast, Russian cryptobros that I know tend to act very, very lowkey. The fewer people know about your activities, the better. Posting about dealing with crypto in social media is absolutely unthinkable. Why? Because that makes you too easy and lucrative prey" That thread describes how a basement was found, in the house…
How do we know the crypto owners were held there? > 5. That may explain why Russian army and the military equipment are so archaic btw. In order to create something new, e.g. drones you normally need non-violent entrepreneurs who would actually create stuff. In Russia they're being wiped out by the violent ones. Hence, no drones Iran has drones. Does that mean Iran is an example of "an artificial, abnormal environmen…
The evidence is circumstantial, which is why I said "appears to be designed for" not "we know crypto owners were held there".
The more well attested point is that crypto owners in Russia don't advertise the fact, for fear of something like this.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#350This whole saga has done irreparable damage to crypto. It will take a lot of time for it to come out of this hole. When there is money involved, and that too this much, there will be conspiracy theories flying around and the regular retail investor will be tough to win back. It will be very interesting to see what happens from here on out. Crypto doesn’t have any uses to begin with, if it’s purely used as pump and du…
All it takes is a business case: how will this business make money? Where will its cash flow come from? Where's the value-add? How easy is it to be out-competed? Who are the existing market players? How do they make money? What are you offering customers that will attract them to your business? What is the horizon for profitability?
You know, absolutely fundamental questions that have never been asked or answered of crypto. Questions that were "presumed answered" by made-up market capitalisations, and the flood of teenagers and young-adults into the schemes.
"This time" is never different. The route to making a sustainable profit never changes.