https://cointelegraph.com/news/bitc...c-terms-how-high-can-the-btc-short-squeeze-goVanadium 50 said:Obviously a new definition of the word "stable" of which I was previously unaware.
“Everyone has the incentive to redeem asap for $1. You don’t want to be in the last 10%, with all the money already gone.“
With this logic, people should run to withdraw all their cryptos from all centralized exchenges, as none is fully backed up.nsaspook said:https://cointelegraph.com/news/bitc...c-terms-how-high-can-the-btc-short-squeeze-go
“If USDC is only 90% backed, the equilibrium price is NOT $0.90. The equilibrium price is ZERO,” Cory Klippsten, CEO of Swan Bitcoin, reacted, adding:
Nonsense. "Paper money" is just a holding token for "the full faith and credit of the United States" and that is backed to the tune of $250,000 for individual bank accounts.fluidistic said:People should also run and empty their bank accounts in cash, as only around 2 percent of one's money is backed in paper money.
what you wrote wasfluidistic said:I do not understand how that goes against what I wrote. Even if it were fully backed no matter the amount in one's account.
That is what I was saying is nonsense. People COULD just pay for everything with checks, credit cards, PayPal, etc. Actual greenbacks are not necessary.people should also run and empty their bank accounts...
I believe it is better than this. If it is over $250K, the first $250K is insured, Per bank, not per depositor. If someone had $1.5M and deposited $300K each in five banks, and fourt failed, he would get at least $1.3M backgmax137 said:unless your bank account is more than $250,000 it is insured by the FDIC.
Rive said:But that's also not cash but electronic money, no?
So regardless the insurance no sufficient 'backing' in cash.
As scorn on the nonsense of that bitcoin guru, it's just brilliant, IMHO.
To stem the damage and stave off a bigger crisis, the Fed and Treasury created an emergency program to backstop deposits at both Signature Bank and Silicon Valley Bank using the Fed’s emergency lending authority.
While depositors will have access to their money, equity and bondholders at these banks are being wiped out, a senior Treasury official said.
I heard about it last night. Crypto exposure (is like Cryptonite) has real world consequences.nsaspook said:https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html
Regulators close New York’s Signature Bank, citing systemic risk
FDIC insurance now covers all deposits but equity and bondholders are left holding worthless paper.
I guess that's the risk with any investment.
https://finance.yahoo.com/news/regu...-third-largest-us-bank-failure-231404695.htmlRegulators seized New York regional bank Signature Bank (SBNY) two days after shutting down Silicon Valley Bank as overseers of the banking system try to restore calm before markets open Monday.
Signature becomes the third-largest bank to ever fail in the U.S., behind Silicon Valley Bank and Washington Mutual in 2008, if its assets haven't changed significantly since the end of 2022. Signature had $110 billion in assets as of Dec. 31, ranking 29th among U.S. banks. It had $88 billion in deposits as of that date, and approximately 89.7% were not insured by the Federal Deposit Insurance Corporation.
So where was the regulation, the risk assessment, the stress tests, . . . . ? Interest rates have been steadily rising for about a year, and there was warning months before that started happening.Signature served clients in the cryptocurrency world and had been trying to reduce its exposure. Like Silvergate Bank, another crypto-friendly bank that said last week it would voluntarily wind itself down, it suffered from a deposit outflow in the aftermath of the collapse of crypto exchange FTX. Deposits dropped 17% in the fourth quarter of 2022 as compared to the year-earlier period.
The value of some of its securities had also dropped in value due to a rapid rise in interest rates over the last year, . . .
Decentralized lending protocol Euler Finance was hit by an attack that drained $197 million in cryptocurrencies from its platform on Monday, making it the largest hack in its corner of the digital-assets market this year.
The bulk of the hacker’s loot — worth roughly $135 million — was denominated in staked Ether tokens (stETH), while the remainder was held in wrapped Bitcoin and stablecoins DAI and USDC, according to security firm BlockSec. Some of the proceeds from the attack are already being laundered through Tornado Cash, a US-sanctioned platform which enables users to obfuscate their transaction history, security companies PeckShield Inc and Elliptic said.
The incident at Euler is the latest blow to the battered crypto sector, following the recent shutdown of several crypto-friendly US banks in the last week which left multiple major digital-asset companies exposed. Those collapses have capped off months of bankruptcies, scandals and layoffs among crypto companies, triggered by a rout in digital asset prices.
https://finance.yahoo.com/news/ftx-execs-joked-internally-losing-180620302.htmlA new report filed in the ongoing autopsy of failed crypto exchange FTX reveals a litany of accusations against the company including executives who laughed about losing track of millions, a culture that cracked down on anyone who flagged potential problems, and a total disregard for normal accounting principles.
A group of FTX’s debtors, led by current CEO and chief restructuring officer John Ray III, filed a 39-page report with the U.S. Bankruptcy Court for the District of Delaware Sunday, detailing the demise of the exchange along with its trading arm, Alameda Research. They allege that FTX was completely controlled by a small cabal of executives, helmed by cofounder and former CEO Sam Bankman-Fried (SBF), who failed to institute proper accounting, security, and management practices, putting the firm’s “crypto assets and funds at risk from the outset.”
“While the FTX Group’s failure is novel in the unprecedented scale of harm it caused in a nascent industry, many of its root causes are familiar: hubris, incompetence, and greed,” they wrote.
And IMO the tech startup culture encourages risk taking for fear of missing out. Overall it's probably actually a winning strategy.jrmichler said:Because SBF and Elizabeth Holmes both have outstanding people skills, and used those skills to persuade otherwise sophisticated people to invest in their scams without doing due diligence.
Has she traded her black turtleneck for an orange jumpsuit yet?jrmichler said:Elizabeth Holme
The judge denied her petition to stay free during her appeal. So she reports to prison on April 27, 2023. Her partner in crime Sunny Balwani has to report a week earlier, on April 20, 2023. Article: https://apnews.com/article/elizabet...d-conviction-46471e11f615b8ce16114c22551477aaVanadium 50 said:Has she traded her black turtleneck for an orange jumpsuit yet?
Not just in crime.jrmichler said:Her partner in crime
Fair enough. But these do have a lot in common - "I don't understand it, but somehow it will make me zilions!: is not a story that usually ends well.jrmichler said:lets get back to bitcoin scams...
Bitcoin is up 80% YTD, which is a pretty decent return...jrmichler said:And now, lets get back to bitcoin scams...
From Taylor Swift's song Blank space, the chorusAstronuc said:Taylor Swift didn't sign $100 million FTX sponsorship because she was the only one to ask about unregistered securities, lawyer says!
https://www.yahoo.com/finance/news/taylor-swift-didnt-sign-100-112618986.html
So she either saw it comingSo it's gonna be forever
Or it's gonna go down in flames
You can tell me when it's over, mm
If the high was worth the pain
Maybe SBF was one of those "ex-lovers" and let her in on a secret.Got a long list of ex-lovers