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bitcoins

The Onion: Crypto Confidence Soars After CEO Defrauds Customers Just Like Real Bank


“I actually feel a lot more comfortable investing my hard-earned money knowing that this company has no reservations about recklessly gambling with it, just like a traditional banking institution would,” said 36-year-old crypto investor Daniel Palmederas, explaining that he was previously hesitant to invest in the decentralized and unregulated currency before learning that their exchange companies were happy to fuck over customers just like banks such as Wells Fargo. “I mean, people are going to be losing their houses over this, so you know it’s the real deal. Once I heard that the CEO of the major crypto exchange company helped the FTC write the regulations for his own industry, I thought, ‘Well now, that’s a bank, straight up!’
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If it can evaporate that quickly, is it really a fortune to begin with? :dunno

Edit: Onion nails it yet again... :cry
 
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Climber said:
This guy had about as rough of a week, financially, that I've ever heard of.

In less than a week, Sam Bankman-Fried’s $16 billion fortune evaporated
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Further down the article it says he lost 94% of his wealth, leaving him with $1B. A kick in the gonads for sure but he won’t be living on food stamps, not just yet anyhow. However next week might be a different story.

Talk about having all your eggs in one basket. I can’t believe he hasn’t diversified just a little bit.
 
is your intent to post in this thread to disparage your fellow barfers?

damn that's cold.

you do you
 
It's not Sunday dump time yet, but BTC.X holding up surprisingly well after FTX is "hacked" just after declaring bankruptacy, which seems likely to promote further crypto contagion tanking.
 
Blankpage said:
Further down the article it says he lost 94% of his wealth, leaving him with $1B. A kick in the gonads for sure but he won’t be living on food stamps, not just yet anyhow. However next week might be a different story.

Talk about having all your eggs in one basket. I can’t believe he hasn’t diversified just a little bit.
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Well considering he at the very least violated agreements with customers and most likely committed fraud, that money may not be his for too long.
 
Killroy1999 said:
Good time to buy in
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:rofl

By buying in on an asset that is down something like 75%, you are providing exit liquidity for others.

There are very few legitimate use cases for crypto or bitcoin besides frauds and scams.

If the SEC and the federal government's hand is forced into regulating crypto after this crash, the price will tank even further as people try to exit.

And keep in mind, one of the biggest frauds, Tether, that provides most liquidity on the crypto market still hasn't crashed yet. Once Tether's done, BTC will go to near zero.

ScarySpikes said:
Well considering he at the very least violated agreements with customers and most likely committed fraud, that money may not be his for too long.
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It's probably one of the biggest, if not the biggest, frauds of our time. BUT this guy was one of the top Dem donors (second biggest?) + his mom runs a Dem Super PAC. He knows how to play his cards. He'll be fine. The people who really got screwed are the crypto "investors".
 
I think that ever since Musk promoted it (and profited) then quietly dumped his coins, for a profit, it's not had the celebrity lift that put it up so high at one time. That doesn't mean it will never happen again, there may be another Billionaire who sees the opportunity for quick $$$$$$, but I've always been leary of perception-driven wealth schemes.
 
Climber said:
I think that ever since Musk promoted it (and profited) then quietly dumped his coins, for a profit, it's not had the celebrity lift that put it up so high at one time. That doesn't mean it will never happen again, there may be another Billionaire who sees the opportunity for quick $$$$$$, but I've always been leary of perception-driven wealth schemes.
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True. If any of the coins had any real utility, the endorsements would not matter. If the only reason most people are investing into something is hype, it's not sustainable.

That said, if you were smart and cashed out your Bitcoin last year and invested it all in the almighty US Dollar, you'd have tripled your money.

7aWCRPH.png
 
So, on the radio this morning I heard a talking head say something about a sort of "Crypto Central Bank" being formed to help stop the bleeding crypto is experiencing. Any experts here wanna chime in? I though Crypto existed to not have things like central banks. Is this about FTX falling apart?
 
Mike95060 said:
So, on the radio this morning I heard a talking head say something about a sort of "Crypto Central Bank" being formed to help stop the bleeding crypto is experiencing. Any experts here wanna chime in? I though Crypto existed to not have things like central banks. Is this about FTX falling apart?
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CZ/Binance are creating a bailout fund for troubled crypto companies, which is kinda sorta what a central bank does.

Crypto is extremely centralized, which is why the downfall of one player impacts the entire ecosystem.
 
mrzuzzo said:
CZ/Binance are creating a bailout fund for troubled crypto companies, which is kinda sorta what a central bank does.

Crypto is extremely centralized, which is why the downfall of one player impacts the entire ecosystem.
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I'm kind of surprised to see it as being extremely centralized when I thought that cryptocurrency was self-contained with the encryption driving the accounting across many platforms with checksums and other methods to assure that false data hadn't been entered into the data.

Please explain how it's centralized, I'm sure most of us don't really understand a ton about crypto.
 
The standard joke about understanding the FTX collapse should be: "Wait for Michael Lewis write a book about it." :laughing But, Lewis was already working on a book about Bankman-Fried.

Telegraph.co.UK: Big Short author Michael Lewis plans book on FTX founder who lost a $16bn crypto fortune in days
 
Mike95060 said:
So, on the radio this morning I heard a talking head say something about a sort of "Crypto Central Bank" being formed to help stop the bleeding crypto is experiencing. Any experts here wanna chime in? I though Crypto existed to not have things like central banks. Is this about FTX falling apart?
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FTX was aiming to be that by acquiring Binance, IIRC. The exchanges hold depositors "value" which is to say, capital. SBF used that capital at some point to prop up his Alameda fund which issued his own FTT coin (and stabilized value by purchasing coins w/ Alameda & FTX depositor funds). This while thing would make Madoff AND John Ponzi blush.

Climber said:
I'm kind of surprised to see it as being extremely centralized when I thought that cryptocurrency was self-contained with the encryption driving the accounting across many platforms with checksums and other methods to assure that false data hadn't been entered into the data.

Please explain how it's centralized, I'm sure most of us don't really understand a ton about crypto.
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The reserves requirement for exchanges was a large culprit with BTX. That and that SBF did what all fraudsters do: he used depositor funds for his own needs. That includes stadium naming rights, political contributions and propping up his own coin's value with open market FTT purchases. No different than any run of the mill Ponzi scheme. The big difference was the loss of $1-10B of missing depositor funds not to mention the funds outright "lost" in operating activities.

FTT is now an American Ruble.

Good article here: https://open.substack.com/pub/bariw...mer?r=16x922&utm_campaign=post&utm_medium=web
 
Climber said:
I'm kind of surprised to see it as being extremely centralized when I thought that cryptocurrency was self-contained with the encryption driving the accounting across many platforms with checksums and other methods to assure that false data hadn't been entered into the data.

Please explain how it's centralized, I'm sure most of us don't really understand a ton about crypto.
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Right, but if the hashrate is controlled by a few major mining pools or miners then it's basically centralized. If one whale can dump his bitcoin and cause a plunge in price, it's centralized.

Satoshi's vision has very little to do with the bitcoin pyramid scheme of today.
 
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