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Insider Trading at Coinbase

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Re: Insider Trading at Coinbase

#311

Post by jl2718 »

thruway516 wrote: post #262
matheusmoreira wrote: post #238

Earlier quoted context omitted.

"Crypto fans" never wanted centralized exchanges dominating the entire space. Cryptocurrency was invented to put an end to banks, not to create new unregulated pseudo-banks that are even worse than the previous system. You think we're not aware of the fact that exchanges have access to vast amounts of market information? They can literally bet against their own users on futures if they want. We want deregulation when…

From my experience in cryptoverse, you and all the idealists who still think like this are in the minority, completely swamped by all the people who don't care which way it goes so long as they get filthy rich

I don’t think it’s a minority position, but we haven’t figured out how to make it work yet.

Re: Insider Trading at Coinbase

#312

Post by rsync »

vimy wrote: post #126
once_inc wrote: post #94

Earlier quoted context omitted.

Jan 3rd is Proof-of-Reserves day, and all of the larger actors have ignored it for far too long. I believe Kraken has committed to it now, which is great. Also: obligatory "not your keys, not your coins" and "don't keep your coins on an exchange".

> Also: obligatory "not your keys, not your coins" and "don't keep your coins on an exchange". Unless lobbying can still stop it the EU parlement will outlaw self hosted wallets. Only coins on exchanges will be allowed.

"Unless lobbying can still stop it the EU parlement will outlaw self hosted wallets."

Absurd and laughable.

I can't wait to start printing and handing out long random numbers.

Now what ?

Re: Insider Trading at Coinbase

#313

Post by rchaud »

reedjosh wrote: post #260
VHRanger wrote: post #203

Earlier quoted context omitted.

The 2008 bubble was largely driven by the deregulation of financial instruments (and non-regulation of new instruments) in the late 1990 and early 2000.

It was also driven by easy fed dollars and banks that knew they'd be bailed out.

Lehman Brothers didn't know, Barclay's acquired them for pennies. Same with Bear Sterns (JP Morgan acquired) and Merrill Lynch (BofA acquired).

Also quantitative easing began as a result of the massive loss of trust between banks as a result of the crisis. Every central bank in countries with big financial centers had to follow a similar playbook.

Re: Insider Trading at Coinbase

#314

Post by tsimionescu »

rosndo wrote: post #307
tsimionescu wrote: post #210

Earlier quoted context omitted.

Because you don't want others to notice what you're doing, obviously. If the CEO of X is buying massive amounts of X stock, people will start assuming they have inside information, and the price will go up. If the CEO of X bought a few shares at market price every day, that will be less likely to alert anyone, and they will be able to continue buying at very low prices.

So you’re arguing that insider trading has no effect at all?

Insider trading makes someone richer at the expense of others, it's a form of fraud. I don't think it necessarily affects the market significantly otherwise, except by introducing more irrationality and lack of trust, if not regulated against.

Re: Insider Trading at Coinbase

#315

Post by thomassmith65 »

dropnerd wrote: post #310
thomassmith65 wrote: post #279

Earlier quoted context omitted.

This community has been discussing crypto since 2009 (four months after 'Satoshi' mined the genesis block) https://news.ycombinator.com/item?id=599852 It may still be true that "most people" here don't have a clue about it, but it's a hollow criticism since far more have a clue here than elsewhere.

you can be epicly early and epicly wrong. in that very thread: > Well this is an exceptionally cute idea, but there is absolutely no way that anyone is going to have any faith in this currency.

I checked the history of the user who left that comment; it shows recent posts about crypto, too. That's thirteen years of following the subject.

The claim in the parent post, roughly, is that the HN community is clueless about crypto and economics. In reality, HN had a large hand in popularizing crypto, and criticism here often is based on experience rather than ignorance.

Re: Insider Trading at Coinbase

#316

Post by jcranberry »

reedjosh wrote: post #263
im3w1l wrote: post #247

Earlier quoted context omitted.

I actually think the opposite. Causing a short squeeze is market manipulation. Regulatory agencies let it happen anyway because it was done by random nobodies.

If a short squeeze happens that by definition means the shorts were over zealous. If a market allows shorts it should allow a squeeze as a mechanism of balance.

The market allows short squeezes. SEC too. What the SEC doesn't allow is the deliberate triggering of short squeezes.

Re: Insider Trading at Coinbase

#317

Post by berberous »

FabHK wrote: post #273
berberous wrote: post #189

Earlier quoted context omitted.

This is a strawman. It also paints “crypto fans”, as some monolithic group that all think the same way. I am a crypto fan and do not “want deregulated finance”. It is not “exactly what crypto is all about”. I think most in the space would actually like to see more sensible regulation.

I don't understand. If you have regulation, you need people that interpret and enforce that regulation. In other words, you need trust. If your system is predicated on trust, you can dispense with the blockchain that does a lot of unnecessary busy work, and replace it by a few guys with an Excel spreadsheet or two, and regulate them. The environment will thank you.

This is such a nonsensical argument. Crypto is a huge space with myriad benefits, which are not negated by having some elements regulated.

For example, perhaps you are in favor of crypto because it is (i) harder for a state to seize or (ii) impossible for a single state to inflate. Those are in part possible because of the distributed decentralized nature of cryptocurrency. Being in favor of those two things does not mean you cannot also be in favor of regulating people that manipulate crypto market by wash trading, in favor of arresting thieves and hackers, in favor of banning insider trading, etc. You can have a system with trustless elements and that still relies on the laws and regulations to enforce certain aspects.

Re: Insider Trading at Coinbase

#318

Post by rosndo »

tsimionescu wrote: post #314
rosndo wrote: post #307

Earlier quoted context omitted.

So you’re arguing that insider trading has no effect at all?

Insider trading makes someone richer at the expense of others, it's a form of fraud. I don't think it necessarily affects the market significantly otherwise, except by introducing more irrationality and lack of trust, if not regulated against.

How is insider trading a form of fraud? Insider trading can certainly be fraud, but you’ll have to further explain why this would be an inherent property of insider trading.

>Insider trading makes someone richer at the expense of others

This just shows that your understanding of markets is at elementary school level.

How exactly does insider trading cost anybody else money? It simply allows for more accurate pricing.

If I own shares of company $x and an insider sells their shares of $x causing the stock to plummet, I do not lose anything. I still own those stocks, they’re just valued more accurately.

Re: Insider Trading at Coinbase

#320

Post by formerkrogemp »

notahacker wrote: post #254
BitwiseFool wrote: post #212

Earlier quoted context omitted.

From my perspective, only letting people who are well off enough to 'weather the loss' seems like something that only exacerbates the wealth gap.

The wealth gap isn't going to shrink by making it easy for startups (or "startups") that can't convince rich strangers (or friends and family, or crowdfunding platforms) they're worth investing in to convince larger numbers of less rich strangers to do it instead. Most companies funded by professionals go bust and the risk adjusted returns to VC as an asset class aren't that great: the funds that have spectacular ret…

You're not going to find a welcoming crowd here criticizing startups on Y-Combinator news, a site written by Paul Graham and a site catering to a startup accelator's usual audience.
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