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Would someone mind calming me by explaining why this is not a huge red flag, this isn’t the beginning of the end, and a theoretical crypto crash won’t throw the market into turmoil (or why the current market turmoil ain’t so bad)? I don’t have any kids to feed, just young dumb and tired of market crashes.
This seems to be a small player, so it's not especially concerning, but when the Coinbase CEO says his company has "no risk of bankruptcy," it's one of those moments where I wonder why he felt he needed to say that. Sure, they reported it as a possible risk to the SEC, but then "nothing to see here, folks" doesn't inspire confidence.
Would someone mind calming me by explaining why this is not a huge red flag, this isn’t the beginning of the end, and a theoretical crypto crash won’t throw the market into turmoil (or why the current market turmoil ain’t so bad)? I don’t have any kids to feed, just young dumb and tired of market crashes.
While this particular event doesn’t mean much, if you are heavily invested in crypto you should be anything but calm. If you are big into an altcoin, prepare for that to go up in smoke the next few months. If you hold a lot of Bitcoin, make peace with it losing over 75% of value in the next few months. It’s going back to pre-covid levels at best.
Would someone mind calming me by explaining why this is not a huge red flag, this isn’t the beginning of the end, and a theoretical crypto crash won’t throw the market into turmoil (or why the current market turmoil ain’t so bad)? I don’t have any kids to feed, just young dumb and tired of market crashes.
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Who is the target market for such a service?
The reasons for OTC desks is that if an individual wants to buy, say $100m of an asset, it's likely that they need to buy from multiple sellers. If you do that by buying $10k x 10k transactions, your demand will increase the price of the asset and mean you pay more than current price for no good reason. OTC desks either collect the $100m from large holders in big blocks, or they use working capital to constantly buy…
Which could possibly be the reason why they are in trouble? The NZD has been dropping against USD over the last while, so any uncovered delays could hurt their margins?
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It's also less descriptive, accurate and precise.
I don't know about that. They include the word small. Judging from the original headline and HN story position, how big would you estimate this business to be?
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Bitcoin alone was apparently given a market cap of over 2 trillion recently. That’s roughly the entire GDP of France. If France’s economy poofed out of existence or halved in value, that’d be a huge shake up.
France's GDP results from liquid money already being moved around. "Market cap" estimates assume that everyone could sell without the price moving. It's going to be far more sensitive to price changes than an actual country's GDP, it's based on what current trading prices are. And Bitcoin, unlike a company with a huge market cap, isn't providing goods or services. E.g. if Apple disappeared into thin air, everyone hop…
Would someone mind calming me by explaining why this is not a huge red flag, this isn’t the beginning of the end, and a theoretical crypto crash won’t throw the market into turmoil (or why the current market turmoil ain’t so bad)? I don’t have any kids to feed, just young dumb and tired of market crashes.
This is some random startup nobody has heard of. HN likes to work themselves into a froth over every scrap of bad crypto news, but this is utterly insignificant. Crypto will continue to fluctuate wildly as it always has.
HN is only a step above CNN when it comes to trustworthiness on this specific topic.