Crypto company deathwatch thread

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Nol 2

Nol 2

kiwifarms.net
Joined
Nov 19, 2021
Well, the bear market is upon us, and Crypto companies that were leveraged are going down. Having a thread to track them could be fun. I'll post a few to get us started

LUNA/UST:

Started by a guy named Do Kwon, this pair of cryptos kicked off the current downtrend. Idea was, having an algo stable coin (UST) that can be traded 1:1 for the value of the main coin itself (LUNA) backed by bitcoin. People could stake their coins for a cool 20% interest, and in doing so locked up the supply to drive the LUNA price higher.

This worked great, until the price of bitcoin shit the bed. At which point their 1 USD stable coin ended up being worth pennies on the dollar.

Before the collapse they were sitting at a marketcap of about 18 billion dollars. Now the marketcap is a couple hundred million propped up by delusional people who can't let the dream die.

Celsius:

Celsius sold itself like a traditional bank, Deposit your crypto with them, get some return, ~5%. Not too shabby for normal people, and it was a real company which was comforting to said normal people. Only problem is they were operating more like a hedge fund, with a decent ammount of leverage. Now, this wasn't a problem because obviously Bitcoin seemed to be be going no lower than 28k, and they had a pretty solid cushion. Until the Do Kown stuff happened. Then the price got a bit close to their liquidation point, at which point there was blood in the water. People could see their balance sheets (yay crypto) and realized that if they could dump it to 20k they would be liquidated of their 545 mil in collateral. They have since turned off all withdrawls and paid down some positions, so BTC price would need to drop to 14k or so. It is not looking like they will be force liquidated, but as soon as they open up there are fears that there will be a bankrun and put them in a precarious position again.

Three Arrows Capital (3AC):

There is a lot less known about this one. Three Arrows Capital is one of the bigger crypto native hedgefunds and with the prices going down they started minimizing their internet presence, deleting instragam, various coins out of their bio, stuff like that. Then a trader that used one of their accounts noticed 1 mil was missing.
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Zhu in this case being one of the managing partners. So yea, not going great for them.

Coinbase:

They are laying off 20% of their staff. Lots of whispers about them being insolvent, but I will be shocked if they go down.

Anyways, that should get us started. Try to keep it to major entities, or stuff over 100 mil. Aint noone going to care about your shitcoin that you got rugpulled on.
 
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I ordered a ledger nano a plus as soon as I saw coinbase was having issues. Too bad the gas for my ETH might kill me lol.
 
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tehpope said:
I ordered a ledger nano a plus as soon as I saw xoinbase was having issues. Too bad the gas for my ETH might kill me lol.
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Getting your shit off an exchange isn't bad, but I don't see a situation where coinbase goes down. Coinbase goes down, USDC goes down with it, and no one is going to let that happen.
 
We should probably go back to tangible assets backed by physical metals instead of using fiat debt or completely digital lies. But that's not in the FEDcoin cards so depression here we come!
 
Is this a case of the much talked about "bubble" popping, an overall economic depression or something else?
 
It really hadn't occurred to me until now that BTC and crypto in general are almost entirely speculative assets. Crypto isn't done by a long shot, but a lot of overleveraged morons are going to lose their shirts.
 
Breadbassket said:
Is this a case of the much talked about "bubble" popping, an overall economic depression or something else?
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Who knows, its crypto. Number goes up, number goes down, and it never makes much sense.

Right now we are seeing the effects of leverage and liquidation cascades. People borrow against assets, and use that money to do other things with (make more money, borrow more, pay bills, ect). These loans are will become immediately due if the assets used as collateral are on the verge of being enough (Loan To Value is what this is generally referred to)

Now, the bitcoin 200 week moving average is generally considered the bottom of the market, and we are right on it now. And all the other things about the economy look pretty bad, and everything hasn't shaken out yet. And once the liquidations start, they will go fast.

Heres a nice thread on the risks 3AC poses
No archive because shit is slow as fuck at the moment.
 
Nol 2 said:
Who knows, its crypto. Number goes up, number goes down, and it never makes much sense.

Right now we are seeing the effects of leverage and liquidation cascades. People borrow against assets, and use that money to do other things with (make more money, borrow more, pay bills, ect). These loans are will become immediately due if the assets used as collateral are on the verge of being enough (Loan To Value is what this is generally referred to)

Now, the bitcoin 200 week moving average is generally considered the bottom of the market, and we are right on it now. And all the other things about the economy look pretty bad, and everything hasn't shaken out yet. And once the liquidations start, they will go fast.

Heres a nice thread on the risks 3AC poses
No archive because shit is slow as fuck at the moment.
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Full page snapshot attached.

Nitter will archive fast since it uses less resources.
 

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Tether will soon bite the dust. Mark my words. Coinbase is also shit. A full on grift made to siphon as much money from people and put it into the owner's pockets.
 
Justtocheck said:
Tether will soon bite the dust. Mark my words. Coinbase is also shit. A full on grift made to siphon as much money from people and put it into the owner's pockets.
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We witnessed what a relatively minor stablecoin (UST) can do to the market when it implodes. If USDT also dies, we're heading into a fucking crypto ice age. Not that I disagree with you, Tether is sketchy AF. I'd just like for the crisis's to be more spaced out.
 
I have nothing against crypto, but any opportunity for the grave dance is one I will take.
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Us Chads who went heavy into Chuck E. Cheese arcade tokens are looking purty good right now. Purrrrrty good...
 
I doubt Coinbase is going down, they've always struck me as one of the more level-headed crypto companies. Were they hugely overvalued? Yeah, but they're taking steps to cut some of the fat.

Tether was supposed to fall apart years ago, but yet it persists. I don't see that changing unless there's suddenly a huge run to redeem.

Celcius and Luna share a huge overlap in that they were offering extraordinarily unrealistic returns for the supposed safety of the underlying deposit/holding. Celcius also had that chick who showed up on Girls Do Porn.
 
I don't think any exchange is going out. They make all their money on this volatility
Low IQ Doctor said:
Celcius and Luna share a huge overlap in that they were offering extraordinarily unrealistic returns for the supposed safety of the underlying deposit/holding. Celcius also had that chick who showed up on Girls Do Porn.
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Will be interesting to see how more pure defi stuff holds up. Rari has been hacked multiple times, but not made insolvent. No alarms been raised about Yearn, AAVE or Curve yet.

Actually, wonder if this might be the actual test case for defi: Managed shit falls apart, but a good smart contract will keep on ticking.
 
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