Digital currency Bitcoin hits new high before losing S$200 in value in one day

[CY09]

Its a simple case of too many crypto brokers not setting up adequate risk management when lending to 3AC.

In share financing, brokers tend to place a 140% ratio for a margin call and 130% ratio of force selling. These crypto companies should have followed the same risk management and cut off 3AC's positions when it breached 130% of asset to loan ratio. No matter how quick the fall, force sells at 130% would mean these crypto companies would get back 70-80% of their loans. It was not as if 3AC's entire holdings was in Luna, hence force selling is entire portfolio would have saved many of them and removed the domino effects.

[weijian]

I believe NFTs probably have their usage like driving licenses, graduation certs or even deed title.

But these stuff are representative of the information they reflect. And they themselves are worthless.

Minecraft creator rejects NFTs, saying they create scenario of ‘haves and have-nots’

NFTs do “not align with Minecraft values of creative inclusion and playing together” and therefore aren’t allowed in the game, Mojang said.

The decision comes after Microsoft co-founder Bill Gates blasted NFTs as “100% based on greater fool theory.”

https://www.cnbc.com/2022/07/20/minecraf...ivity.html

[weijian]

Another one (abeit founded by Singaporean) is probably going to bite the dust.

I think it should be super obvious by now that the only safe option for crypto holders is to hold their coins in some wallet. It is equivalent of our grannies who used to keep their money in milo cans. Crypto has gone full circle!

Crypto platform Hodlnaut halts services with immediate effect; to withdraw MAS licence application

HODLNAUT will be halting withdrawals, token swaps and deposits with immediate effect, the crypto platform said in a statement on Monday (Aug 8).

The company said this “difficult decision” was so it can focus on stabilising its liquidity and preserving assets.

https://www.businesstimes.com.sg/garage/...as-licence

[BlueKelah]

Another one (abeit founded by Singaporean) is probably going to bite the dust.

I think it should be super obvious by now that the only safe option for crypto holders is to hold their coins in some wallet. It is equivalent of our grannies who used to keep their money in milo cans. Crypto has gone full circle!

Crypto platform Hodlnaut halts services with immediate effect; to withdraw MAS licence application

HODLNAUT will be halting withdrawals, token swaps and deposits with immediate effect, the crypto platform said in a statement on Monday (Aug 8).

The company said this “difficult decision” was so it can focus on stabilising its liquidity and preserving assets.

https://www.businesstimes.com.sg/garage/...as-licence

They promised interest rates of 7%-8%++ which even though not that high, is just unsustainable as bond yields are ~3%, where is all that extra yield coming from if not from crypto asset price appreciation. Once the price goes down, and new money growth slows down, it comes collapsing down pretty fast. This is similar to the high interest property trust investment products sold by banks in China.

SOlana now currently being hacked for millions as well. The only safe place for crypto is an offline wallet. But then that defeats the purpose of trading it and using it as a currency in daily use. And if people are not trading and speculating on it, there wont be any price upside and no point holding crypto anyways as its not going to make you rich.

[Wildreamz]

Actually, I would say on a theocratical basis, what's the point on trusting a centralized exchanged if the purpose of owning crypto is decentralization? 

No serious crypto holder, especially bitcoin maximalist, would place their trust on a centralized exchange. See how the Winklevoss Twins (most well-known crypto billionaire) store their bitcoin: https://www.investopedia.com/news/how-wi...o-fortune/

Not going full circle, but people who trust exchange with their full crypto net worth perhaps are missing the point?

(no position)

[weijian]

Some entities will be hit with provisions and bearing in mind there are quite a few 'Three Arrows' out there collapsing...

.............

Creditors of the fund, recently registered in the British Virgin Islands, filed paperwork saying they're owed more than US$2.8 billion (S$3.89 billion) in unsecured claims.

That figure is expected to rise significantly, court papers show.

Three Arrows liquidators seize $55.6m from crypto hedge fund as asset probe widens
S'pore-based crypto hedge fund Three Arrows owes Genesis parent $1.7b
To date, liquidators overseeing the insolvency have gained control of assets worth at least US$40 million.

Well, he did really lose his shirt now. But probably there is a lot of assets stored up in cold wallets or offshore. So he is fine but probably on the run for life (since he is speculated to owe money to organized crime)

The Crypto Geniuses Who Vaporized a Trillion Dollars

The Flow offices, full of servers, ran hot, and he would come to work in short-shorts and a T-shirt, then remove the shirt, leaving it off even when he went through the building’s lobby. “Su would be walking around topless in his mini-shorts,” a former colleague recalls. “He was the only one who’d take off his shirt and trade.

Zhu’s and Davies’s public personae became even more extreme; their tweets were increasingly pompous, and social acquaintances say they didn’t bother to hide their condescension toward friends from the past and less wealthy contemporaries. “They have very little empathy toward most people, especially normal commoners,” says a onetime friend.

https://nymag.com/intelligencer/article/...crash.html

[BlueKelah]

Some entities will be hit with provisions and bearing in mind there are quite a few 'Three Arrows' out there collapsing...

.............

Creditors of the fund, recently registered in the British Virgin Islands, filed paperwork saying they're owed more than US$2.8 billion (S$3.89 billion) in unsecured claims.

That figure is expected to rise significantly, court papers show.

Three Arrows liquidators seize $55.6m from crypto hedge fund as asset probe widens
S'pore-based crypto hedge fund Three Arrows owes Genesis parent $1.7b
To date, liquidators overseeing the insolvency have gained control of assets worth at least US$40 million.

Well, he did really lose his shirt now. But probably there is a lot of assets stored up in cold wallets or offshore. So he is fine but probably on the run for life (since he is speculated to owe money to organized crime)

The Crypto Geniuses Who Vaporized a Trillion Dollars

The Flow offices, full of servers, ran hot, and he would come to work in short-shorts and a T-shirt, then remove the shirt, leaving it off even when he went through the building’s lobby. “Su would be walking around topless in his mini-shorts,” a former colleague recalls. “He was the only one who’d take off his shirt and trade.

Zhu’s and Davies’s public personae became even more extreme; their tweets were increasingly pompous, and social acquaintances say they didn’t bother to hide their condescension toward friends from the past and less wealthy contemporaries. “They have very little empathy toward most people, especially normal commoners,” says a onetime friend.

https://nymag.com/intelligencer/article/...crash.html

I wonder if Parent trading platform Genesis Global Trading Inc. will get into any default trouble as the 1.7B is as good as gone.

[weijian]

I personally think that emigrants are more anti-fragile than bureacrats/technocrats. They are more pragmatic and knows what probably works or doesn't. Survival (rather than "to the moon") is paramount.

Most Salvadorans Think Making Bitcoin Legal Tender Was 'Failure'

According to the poll by the University of Central America (UCA), 75.6 percent of respondents said they never used cryptocurrency in 2022, and 77 percent consider its adoption 14 months ago as legal tender, alongside the dollar, "to have been a failure."

But according to data from the Salvadoran Central Bank in early September, a year after the introduction of Bitcoin, "less than two percent" of remittances from emigrants were made using the cryptocurrency.

https://www.barrons.com/news/most-salvad...1666135207

[specuvestor]

(Bloomberg) --Sam Bankman-Fried told FTX.com investors on Wednesday that without a cash injection the company would need to file for bankruptcy, according to a person with direct knowledge of the matter.
Before Binance pulled an about-face and bailed on its takeover offer, Bankman-Fried informed investors his crypto exchange faced a shortfall of up to $8 billion, said the person, who requested anonymity discussing private talks. FTX is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, the person said.

An FTX representative declined to comment.

Sam Bankman-Fried
Bankman-Fried’s acknowledgment of his firm’s deep financial hole and limited options reflects the uncertain fate of FTX and its clients. It’s the latest twist in a stunning turn of events for the crypto industry’s onetime wunderkind, who was once worth $26 billion and likened to John Pierpont Morgan.

[BRT]

(Bloomberg) --Sam Bankman-Fried told FTX.com investors on Wednesday that without a cash injection the company would need to file for bankruptcy, according to a person with direct knowledge of the matter.
Before Binance pulled an about-face and bailed on its takeover offer, Bankman-Fried informed investors his crypto exchange faced a shortfall of up to $8 billion, said the person, who requested anonymity discussing private talks. FTX is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, the person said.

An FTX representative declined to comment.

Sam Bankman-Fried
Bankman-Fried’s acknowledgment of his firm’s deep financial hole and limited options reflects the uncertain fate of FTX and its clients. It’s the latest twist in a stunning turn of events for the crypto industry’s onetime wunderkind, who was once worth $26 billion and likened to John Pierpont Morgan.

wow what a sudden (or maybe long time coming?) turn of events that seem to prove charlie munger was right all along. what did he call crypto, rat poison? from my surface level following of the crypto space, i think FTX is quite the blue chip name, along with coinbase and binance.