61–68 of 68 posts
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Yes it's literally just leveraging
it's recursive leveraging using multiple different market makers that are giving you further leveraged bets on already leveraged assets
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It's definately not a zero-sum system
You can make an argument that the economy as a whole is not a zero-sum system, but money markets certainly are.
While $120M is a huge amount of money, it doesn't necessarily mean they got a huge percentage return. I don't see how much they staked to get this return. The article does mention that the two wallets are collectively worth $3B, and that they used 1-2x leverage in this bet. I'm curious how much they actually bet on this. Was it a 10% overnight return? That's a fantastic return, but plenty of traditional market gamble…
Crypto people discovering leverage and accounting, news at 6. I have $1 asset. I have $2 asset and $1 loan. I have $3 asset and $2 loan.
Yes they have been doing this since Ethereum existed. Maybe it's HN discovering this achievement, considering crypto people are explaining very basic functionality to this website's community
Good for them if they manage to convert those imaginary numbers to actual money. With actual I mean real world money with which you can pay your bills, taxes etc, not the funny internet money. It's still a Ponzi. And writing about this thing in the same terms as legitimate financial trades will not change the fact that it's all a meaningless charade by habitual gamblers.
You seem needlessly aggrevated. Other people are willing to pay for it, so it doesn't really matter how you feel it's "funny internet money", it's a currency of value. Curious, what are those "legitimate" financial trades you are speaking about?
This planet has - or rather had - a problem, which was this: most of the people living on it were unhappy for pretty much of the time. Many solutions were suggested for this problem, but most of these were largely concerned with the movement of small green pieces of paper, which was odd because on the whole it wasn't the small green pieces of paper that were unhappy.
While $120M is a huge amount of money, it doesn't necessarily mean they got a huge percentage return. I don't see how much they staked to get this return. The article does mention that the two wallets are collectively worth $3B, and that they used 1-2x leverage in this bet. I'm curious how much they actually bet on this. Was it a 10% overnight return? That's a fantastic return, but plenty of traditional market gamble…
In the article, they said they opened the position when Ethereum was 1,000 which was 2021.
4% would be a better way of stating their gains.
This "strategy" smells very much like the one that /u/ControlTheNarrative infamously used on Robinhood back in 2019 (and blew up his account).