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Block loses 20% of value as Hindenburg Research alleges fraud

finance.yahoo.com

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Re: Block loses 20% of value as Hindenburg Research alleges fraud

#21

Post by Bilal_io »

pavlov wrote: post #19
phnofive wrote: post #11

> Dorsey [...] told investors about the large number of songs named after Cash App and described how music had become a way to share with others how valuable the app is to them personally, providing them with “so much utility.” > A review of songs mentioning Cash App shows that the artists are not generally rapping about Cash App’s smooth user interface and robust software integration toolkit. > Instead, lyrics descr…

Dorsey is a big Bitcoin fan, so that’s the kind of utility he appreciates. Coming soon: the CashApp ransomware API.

> Dorsey is a big Bitcoin fan, so that’s the kind of utility he appreciates.

This sounds disingenuous. Not every fan of Bitcoin supports fraud, drug trafficking.. etc. The dollar is used for such bad activities, should we label everyone that loves the dollar as a supporter of fraud and drugs?

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#22

Post by [deleted] »

PaywallBuster wrote: post #15
SeanAnderson wrote: post #3

It seems like a pretty wild time to be on the offensive against American fintech companies. No real comment on the merits of their research (yet), just a little shocked at the timing.

Doesn't look like Block's collapse would cause any issues with the financial system

[deleted]

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#23

Post by KingOfCoders »

Bilal_io wrote: post #21
pavlov wrote: post #19

Earlier quoted context omitted.

Dorsey is a big Bitcoin fan, so that’s the kind of utility he appreciates. Coming soon: the CashApp ransomware API.

> Dorsey is a big Bitcoin fan, so that’s the kind of utility he appreciates. This sounds disingenuous. Not every fan of Bitcoin supports fraud, drug trafficking.. etc. The dollar is used for such bad activities, should we label everyone that loves the dollar as a supporter of fraud and drugs?

I would be interested in the percentage of

1. Bitcoin (crypto) users who (only) have BC because they hate fiat money

2. Users who have BC because they need it for illegal gains

3. Opportunistic investors

4. Web3ers

I have the unsubstantiated feeling that 1 is overstated.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#24

Post by tylersmith »

benjaminwootton wrote: post #10

“ Initial Disclosure: After extensive research, we have taken a short position in shares of Block, Inc. (NYSE: SQ). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.” I’m surprised that it’s legal to short sell then go on the attack. If it is, imagine having the cojones to do that and then go live with this repo…

It's wonderful; a natural market incentive for well-capitalized players to expose fraud and misconduct instead of participate in it.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#25

Post by favaq »

phnofive wrote: post #11

> Dorsey [...] told investors about the large number of songs named after Cash App and described how music had become a way to share with others how valuable the app is to them personally, providing them with “so much utility.” > A review of songs mentioning Cash App shows that the artists are not generally rapping about Cash App’s smooth user interface and robust software integration toolkit. > Instead, lyrics descr…

I suppose those who have a problem with this would rather live in a cashless society, right?

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#26

Post by achow »

Closi wrote: post #16
churchill wrote: post #7

Block published a press release [0] saying they intend to sue. But, that article by Hindenburg seems quite in-depth and they'll have a hard time squeezing themselves out of this. [0]: https://investors.block.xyz/news/news-details/2023/Blocks-Re...

Worth noting that the title of this HN post is a little misleading - and Hindenburg actually have not accused Block of fraud (only of facilitating others to commit fraud through their platform).

Hidenburgh seems to have directly accused Block.

Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.

https://hindenburgresearch.com/block/

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#27

Post by jahnu »

mschuster91 wrote: post #20
SeanAnderson wrote: post #3

It seems like a pretty wild time to be on the offensive against American fintech companies. No real comment on the merits of their research (yet), just a little shocked at the timing.

As a German, I used to think the same back when Wirecard was first attacked - and look where that ended. Right now, the financial system is extremely unstable - bad actors with an awful lot of exposure have been exposed, and a lot of people are like sharks in the water, smelling blood. It looks like we're due for another come-to-Jesus moment in the banking scene, they haven't learned enough from 2008.

> they haven't learned enough from 2008.

I think it looks like they learned a lot! I.e. make sure you get too big to fail.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#28

Post by mschuster91 »

jahnu wrote: post #27
mschuster91 wrote: post #20

Earlier quoted context omitted.

As a German, I used to think the same back when Wirecard was first attacked - and look where that ended. Right now, the financial system is extremely unstable - bad actors with an awful lot of exposure have been exposed, and a lot of people are like sharks in the water, smelling blood. It looks like we're due for another come-to-Jesus moment in the banking scene, they haven't learned enough from 2008.

> they haven't learned enough from 2008. I think it looks like they learned a lot! I.e. make sure you get too big to fail.

That one is on the regulatory agencies as well - they looked on silently as larger banks gobbled up smaller ones, or in the case of UBS/CS, actually forced them to merge.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#30

Post by noodles_nomore »

achow wrote: post #26
Closi wrote: post #16

Earlier quoted context omitted.

Worth noting that the title of this HN post is a little misleading - and Hindenburg actually have not accused Block of fraud (only of facilitating others to commit fraud through their platform).

Hidenburgh seems to have directly accused Block. Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated m…

facilitate: 1. To make easy or easier. From French faciliter, from Latin facilis ("easy").
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