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BlockFi files for bankruptcy as FTX fallout spreads

cnbc.com

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Re: BlockFi files for bankruptcy as FTX fallout spreads

#451

Post by acdha »

cesarvarela wrote: post #247
loeg wrote: post #18

Earlier quoted context omitted.

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.

There is no reasonable people in the traditional finance space either if you look at the 2008 crash. https://projects.propublica.org/bailout/list

Not even remotely true. We need regulation to keep the big banks honest but that doesn’t mean nobody knew what was going on. We were living in New Haven at the time and briefly considered buying. I got pre-approved by BofA for a ludicrous amount with almost no diligence, and was quoted half that by a Connecticut state bank which actually checked things. I had a good conversation with the loan officer who said that it was going to be ugly for the big banks but they had kept their foreclosure rates low for decades by sticking with traditional banking practices and weren’t planning to change. A few years later I checked and he was right: their foreclosure rate had gone up a tiny fraction but they were fine.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#452

Post by tptacek »

ilamont wrote: post #80
seydor wrote: post #55

Earlier quoted context omitted.

VC wealth redistribution

There are LPs behind a lot of these incompetent VCs dumping money into in crypto, including public workers' pension funds.

VC is a very small component of a pension fund; it's money that's often deliberately invested in weird decorrelated shit, for portfolio-theoretic reasons. There are lots of reasons to have a problem with crypto and defi! But the safety of pension funds vis a vis institutional VC is probably not really one of them.

(You can imagine batshit pension funds that invest directly in crypto/defi stuff; that's extremely problematic.)

Re: BlockFi files for bankruptcy as FTX fallout spreads

#453

Post by zarzavat »

insanitybit wrote: post #371
Mistletoe wrote: post #296

Earlier quoted context omitted.

I’m sorry I just don’t find the ability to edit tweets a groundbreaking new feature that is difficult to implement in 2022.

Having an immutable ordered log + a single bit flag for "deleted" is radically more efficient than an arbitrarily mutable ordered log. ex: You could store every tweet compressed in S3 with a bitmap for which are deleted (a bit that can be cached forever). That assumes you aren't going to ever have to update the object in S3. Once you have to update it that entire design is horrible, you'll need something completely d…

Add to that deletion flag a tweet redirect ID. Redirect deleted tweets with the ID to new tweets seamlessly. Touch up the old code to account for all this. Now you can edit tweets with immutability intact.

Also has the benefit that retweets and likes point to the old version, which is how it should be.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#454

Post by cozzyd »

MrPatan wrote: post #179
Nursie wrote: post #54

Earlier quoted context omitted.

It is part of what they were doing, part of their investment strategy to grow the funds that were invested with them was to nfts such as "cryptodickbutt #1462". Look it up if you don't believe me. Yes, I'm sure that Terra/Luna was a big part of it, and you're right that it's worth calling out, it may even have been the single biggest factor. But it wasn't the only way 3AC squandered invested funds. Perhaps Terra/Luna…

That cryptodickbutt is probably one of their best investments. I can't see how much they paid for it, it was a transfer. Maybe someone sent it to them as a joke, who knows. In any case, it was around the time they were created, so easily it 20x to today's price. I guess they should have invested more in cryptodickbutts. Look it up if you don't believe me.

rule 37 on bigfoot?

Re: BlockFi files for bankruptcy as FTX fallout spreads

#455

Post by taormina »

SilasX wrote: post #252
paulgb wrote: post #2

> At the start of the year, there were three big North American retail crypto lenders. Now all three are bankrupt. https://twitter.com/kadhim/status/1597250428378705921

Huh? It looks like it was saying the three are Celsius, Voyager, and BlockFi, but it’s missing a much larger one, Genesis. Although that maybe be going bankrupt to if it can’t get support from its parent company DCG.

Definitely about to go bankrupt. Coffeezilla has a great summary here: https://www.youtube.com/watch?v=TNXYHNdGYfc

Re: BlockFi files for bankruptcy as FTX fallout spreads

#456

Post by germinalphrase »

herval wrote: post #291
btown wrote: post #224

Earlier quoted context omitted.

I once heard that a well-known gig economy company would open up new cities by giving employees essentially-unlimited credit cards and telling them to buy whatever they thought was needed, with no controls or multi-person approvals. It'll be interesting to see how VC changes in the modern environment - will they still be all-in on founders willing to unsustainably burn money just to incrementally boost the probabilit…

> I once heard that a well-known gig economy company would open up new cities by giving employees essentially-unlimited credit cards That's pretty documented in the history of Uber :-)

Can anyone recommend a reasonably accurate history of Uber?

Re: BlockFi files for bankruptcy as FTX fallout spreads

#457

Post by aww_dang »

babypuncher wrote: post #295
twiddling wrote: post #287

Earlier quoted context omitted.

Hmm. all the same source, as if there is an agenda...

And that source is Ron Paul's think tank

Misattributing a source is not the same as engaging in a discussion. It isn't a substantive reply or even tangentially related to the topic.

Furthermore, I have a bridge to sell you if you believe that central bank apologists do not have an "agenda".

Evaluating the argument on the merits solves all of this.

Re: BlockFi files for bankruptcy as FTX fallout spreads

#458

Post by taormina »

corndoge wrote: post #8
jmclnx wrote: post #5

> A representative from BlockFi did not immediately respond to requests for comment. Well I am sure the "representative from BlockFi" made out just fine working for BlockFi. I wonder if all these failures will finally tag these crypto companies as ponzi schemes ? Then these people will face real consequences.

“Ponzi scheme” is a specific type of financial fraud and isn’t a synonym for overexposure, excessive leverage, poor management, or even fraud in general. I do not think labeling things as Ponzi schemes which are not Ponzi schemes is helpful. Nor do I understand how that would help with effecting “real consequences.” The consequences faced by company personnel should be consequent to any wrongdoing.

Offering unrealistic returns paid from the fresh influx of cash based on advertising about the unrealistic returns until the whole house of cards collapses is EXACTLY what a Ponzi scheme is. How *isn't* this a Ponzi scheme?

https://en.wikipedia.org/wiki/Ponzi_scheme

Re: BlockFi files for bankruptcy as FTX fallout spreads

#459

Post by no-reply »

GartzenDeHaes wrote: post #408
eastbound wrote: post #376

Earlier quoted context omitted.

> I think also, there are a few startup ideas considered to be "the future" This. I’m getting annoyed with my jQuery/Spring app with ~million of revenue that I can’t get sexy for employees nor for funding; sometimes I want to throw away ethics and say we’re building “a blockchain of solar-powered AI european-central-bank ledgers”. It would be so much easier. Nah, we’re just storied field data in 7 tables, and custome…

You're almost there. Make it a "blockchain powered 3D PRINTED solar AI bank ledger" and you'll be funded in no time.

You forgot to add "to the moon!" at the end /s

Re: BlockFi files for bankruptcy as FTX fallout spreads

#460

Post by georgeplusplus »

germinalphrase wrote: post #456
herval wrote: post #291

Earlier quoted context omitted.

> I once heard that a well-known gig economy company would open up new cities by giving employees essentially-unlimited credit cards That's pretty documented in the history of Uber :-)

Can anyone recommend a reasonably accurate history of Uber?

Ubers lie was it would be profitable at scale. They were never profitable at all while growing, but always claimed that if they just had a few more markets they'd finally be profitable.

Turns out unsurprisingly, if your revenue is negative and you multiply it by 1000000 it's really negative.

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