Crypto company deathwatch thread

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Since I saw the video that brought up the idea of each Crypto crisis driving the next I've been wondering if the people who started it with Luna have already got their comeuppance from having something they invested in vanish into nothing.
 
wtfNeedSignUp said:
Since I saw the video that brought up the idea of each Crypto crisis driving the next I've been wondering if the people who started it with Luna have already got their comeuppance from having something they invested in vanish into nothing.
Click to expand...

It sort of depends who you mean. Someone deliberately brought down Luna, someone with a stupid amount of capital who accumulated huge amounts of UST and then sold it all suddenly so that it would lose its peg, make everyone panic and sell theirs too, mint billions of Luna and crash that to nothing in turn.

So, really depends on whether you blame Do Kwon and Luna for making an algorithmic stablecoin that was vulnerable to that tactic, or whoever crashed it on purpose.

Crypto twitter, with input from various crypto execs, think that person was SBF.

They are both probably going to land up in jail, which is small compensation if you lost any of the money that they stole, that no longer exists and cannot be returned to you.
 
wtfNeedSignUp said:
Since I saw the video that brought up the idea of each Crypto crisis driving the next I've been wondering if the people who started it with Luna have already got their comeuppance from having something they invested in vanish into nothing.
Click to expand...
Depends what you mean by comeuppance really. Eventually people will go to jail. Do Kwon hasn't yet. Of note, he was recently on a podcast where Martin Shkreli told him jail wasn't that bad.

Think Do is going to end up in Korean jail, not US, so it might be different
 
Nol 2 said:
Depends what you mean by comeuppance really. Eventually people will go to jail. Do Kwon hasn't yet. Of note, he was recently on a podcast where Martin Shkreli told him jail wasn't that bad.

Think Do is going to end up in Korean jail, not US, so it might be different
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You mean crypto has rules?
 
Treasure Champs said:
Someone deliberately brought down Luna, someone with a stupid amount of capital who accumulated huge amounts of UST and then sold it all suddenly so that it would lose its peg, make everyone panic and sell theirs too, mint billions of Luna and crash that to nothing in turn.
Click to expand...
Luna ran on naked collateral, as does almost anything crypto with a "smart" contract on it (even conservative ones like Bancor are pretty vulnerable to squeezes). They were literally asking for it. The market mechanism through which luna imploded is entirely legitimate, the problem is that DeFi schemes are primarily ponzis under veil of plausible deniability "we're financially illiterate cryptobro retards, we dindu nothing.".

While you can't really punish protocols and contracts, you can certainly dissuade people from promoting and investing in naked leverage schemes. Something is probably going to be legislated at this point, perhaps to the tune "if you run something that deals with collateral, you're a bank issuing credit, no more fucking jewing around it.".

Btw, sometime back in 2015, when Ethereum was starting to gain steam, Greg Maxwell more or less predicted this is pretty much the inevitability.
 
The thing I'm most curious about is whether there were other women in this polycule or were these dudes seriously fighting over that goblin girl Caroline

Also: crypto lending giant Genesis has halted withdrawals, always the beginning of the end.

This has extended to centralized exchange Gemini, who uses Genesis to fund their Genesis Earn program. Others sure to follow.

bitcoinmagazine.com

Genesis Global Capital Halts Bitcoin, Crypto Withdrawals

Following the implosion of FTX and the locking up of over $175 million, Genesis’s lending arm faces a liquidity crisis and is actively seeking new capital.
bitcoinmagazine.com bitcoinmagazine.com
 
Akashic Retard said:
The thing I'm most curious about is whether there were other women in this polycule or were these dudes seriously fighting over that goblin girl Caroline

Also: crypto lending giant Genesis has halted withdrawals, always the beginning of the end.

This has extended to centralized exchange Gemini, who uses Genesis to fund their Genesis Earn program. Others sure to follow.

bitcoinmagazine.com

Genesis Global Capital Halts Bitcoin, Crypto Withdrawals

Following the implosion of FTX and the locking up of over $175 million, Genesis’s lending arm faces a liquidity crisis and is actively seeking new capital.
bitcoinmagazine.com bitcoinmagazine.com
Click to expand...
Their HR lady was one of the head engineer's girlfriend at the time shit hit the fan and apparently she once lived with SBF as well:
 
The FTX fiasco is exactly fucking why you hold on to your own cryptocurrencies with your own crypto wallets. Don't be lazy, either set up your own god-damn wallet or just buy silver.
 
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FTX was actually a really good exchange and it sucks that it's gone.

The 5% APY yield on your entire account balance was obviously unsustainable and perhaps the near-zero withdrawal fees as well. The former I could live without but the latter made it extremely usable and friction-less. No excuse not to self-custody when you can ship to your ledger for basically no cost.
 
Treasure Champs said:
It sort of depends who you mean. Someone deliberately brought down Luna, someone with a stupid amount of capital who accumulated huge amounts of UST and then sold it all suddenly so that it would lose its peg, make everyone panic and sell theirs too, mint billions of Luna and crash that to nothing in turn.

So, really depends on whether you blame Do Kwon and Luna for making an algorithmic stablecoin that was vulnerable to that tactic, or whoever crashed it on purpose.

Crypto twitter, with input from various crypto execs, think that person was SBF.

They are both probably going to land up in jail, which is small compensation if you lost any of the money that they stole, that no longer exists and cannot be returned to you.
Click to expand...

"Algorithmic stablecoins" predate computers. Trying to tie a currency's value to an asset that you are unable to redeem it for in mass quantities is intrinsically fragile, and it always ends in collapse. A billion dollars in claims on a pile of a million dollars never ends well.
 
Sorry goyim, no refunds!
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