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

BlockFi files for bankruptcy as FTX fallout spreads

cnbc.com

Post reply on HN
Print view View original

11–20 of 544 posts

Re: BlockFi files for bankruptcy as FTX fallout spreads

#11

Post by orangepurple »

postalrat wrote: post #7
simple-thoughts wrote: post #3

With projects like blockfi, users get all the disadvantages of the centralized traditional financial system without any of the regulatory protections that have built up over centuries. Terrible for the people with assets in blockfi but extremely predictable. The point of defi is that you can use financial services without a centralized counterparty. People who can’t handle their own keys should be using traditional b…

What's the cryptocurrency endgame? Everyone has keys in cold storage waiting for the day we have the mathematics that destroys them?

There is no end game. You use it in your daily life to obtain or achieve things then you die.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#12

Post by coldpie »

postalrat wrote: post #7
simple-thoughts wrote: post #3

With projects like blockfi, users get all the disadvantages of the centralized traditional financial system without any of the regulatory protections that have built up over centuries. Terrible for the people with assets in blockfi but extremely predictable. The point of defi is that you can use financial services without a centralized counterparty. People who can’t handle their own keys should be using traditional b…

What's the cryptocurrency endgame? Everyone has keys in cold storage waiting for the day we have the mathematics that destroys them?

> What's the cryptocurrency endgame?

To not be the one stuck holding the bag.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#13

Post by frgtpsswrdlame »

nscalf wrote: post #9

For what it's worth, all reasonable people in the crypto space want regulation to make sure these types of poor lending practices don't continue. Regulators have been slow and ineffective when it comes to crypto, which has lent itself to the crypto v SEC narrative, but all the adults in the room known there is a need for some regulation.

You don't 'regulate' a ponzi scheme (at least not in the sense that you mean regulation), you prosecute it.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#14

Post by rahen »

sdiacom wrote: post #6
simple-thoughts wrote: post #3

With projects like blockfi, users get all the disadvantages of the centralized traditional financial system without any of the regulatory protections that have built up over centuries. Terrible for the people with assets in blockfi but extremely predictable. The point of defi is that you can use financial services without a centralized counterparty. People who can’t handle their own keys should be using traditional b…

Sure, but you can't use DeFi to trade fiat for crypto. You can use DeFi to trade crypto for crypto, or for crypto that pretends to be fiat. Saying "centralised exchanges bad, DeFi good" misses the point that the main use case of centralised exchanges is not covered by DeFi.

> Sure, but you can't use DeFi to trade fiat for crypto.

Of course you can, both ways.

- https://bisq.network

- https://learn.robosats.com

Re: BlockFi files for bankruptcy as FTX fallout spreads

#15

Post by ARandomerDude »

nscalf wrote: post #9

For what it's worth, all reasonable people in the crypto space want regulation to make sure these types of poor lending practices don't continue. Regulators have been slow and ineffective when it comes to crypto, which has lent itself to the crypto v SEC narrative, but all the adults in the room known there is a need for some regulation.

That sounds nice in theory, but of course these companies are free to sit down and hammer out professional standards without the government telling them to. "We really want to be told what to do but nobody will" is code for "I'm not doing anything until the government makes me, and I'll redirect blame to the glacially slow government the whole time."

Re: BlockFi files for bankruptcy as FTX fallout spreads

#16

Post by propter_hoc »

Somehow these guys peaked at about 900 employees, according to linkedin (https://www.linkedin.com/company/blockfi)

They've raised about a billion dollars of VC - https://www.crunchbase.com/organization/blockfi-inc/investor...

(note, CB lists $1.4b, of which 400M is debt from FTX, which I imagine they never got)

Unbelievable the amount of destruction of value here... it's just total carnage.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#17

Post by simple-thoughts »

sdiacom wrote: post #6
simple-thoughts wrote: post #3

With projects like blockfi, users get all the disadvantages of the centralized traditional financial system without any of the regulatory protections that have built up over centuries. Terrible for the people with assets in blockfi but extremely predictable. The point of defi is that you can use financial services without a centralized counterparty. People who can’t handle their own keys should be using traditional b…

Sure, but you can't use DeFi to trade fiat for crypto. You can use DeFi to trade crypto for crypto, or for crypto that pretends to be fiat. Saying "centralised exchanges bad, DeFi good" misses the point that the main use case of centralised exchanges is not covered by DeFi.

Blockfi isn’t primarily an exchange, it is a crypto lending platform. Centralized exchanges are a viable target for regulation as the state has the capacity to do so if it chooses to. But these regulated exchanges should never be holding your crypto on your behalf. It should be purely fiat for crypto with minimal custody. However it will be difficult for that regulation to occur as dark hybrid exchange-banks are benefitting key political actors.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#18

Post by loeg »

nscalf wrote: post #9

For what it's worth, all reasonable people in the crypto space want regulation to make sure these types of poor lending practices don't continue. Regulators have been slow and ineffective when it comes to crypto, which has lent itself to the crypto v SEC narrative, but all the adults in the room known there is a need for some regulation.

Some of us find it hard to believe there are any reasonable people in the crypto space. The whole thing seems like a dumb sham. The FTX collapse and contagion is sad but unsurprising.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#19

Post by boringg »

orangepurple wrote: post #11
postalrat wrote: post #7

Earlier quoted context omitted.

What's the cryptocurrency endgame? Everyone has keys in cold storage waiting for the day we have the mathematics that destroys them?

There is no end game. You use it in your daily life to obtain or achieve things then you die.

Don't you keep it in cold storage so three generations from now you offspring can bring it back out for significant wealth gains or alternatively a reminder of funny things humans do?

Re: BlockFi files for bankruptcy as FTX fallout spreads

#20

Post by postalrat »

orangepurple wrote: post #11
postalrat wrote: post #7

Earlier quoted context omitted.

What's the cryptocurrency endgame? Everyone has keys in cold storage waiting for the day we have the mathematics that destroys them?

There is no end game. You use it in your daily life to obtain or achieve things then you die.

Then the end game would be to be something useful that people use in their daily lives.

I think that's what was meant when calling it digital currency.

But now it's heading down a different path.

Post reply on HN