Bitcoins - about to hit $5,000 per coin today!

[Thin Lizzy]

SamBF was running a good old fashioned ponzi on top of another ponzi crypto. He took advantage of the high risk, unregulated and speculative nature of the crypto space.

It's also very much worth pointing that crypto as an asset class wasn't what failed here. The SBF/FTX drama actually shows why centralized platforms are not ideal. The original thesis for crypto is decentralization. If FTX was a decentralized platform then the rug pull would not have been possible.

It was bad risk management. Was too levered up. Then got into a hole. Overtraded to get out of it and got in deeper.

Good podcast on the subject. Apparently all the money he was donating to the Democrats was to ram legislation through to fuck his decentralized competitors.

[Flexacon]

It was bad risk management. Was too levered up. Then got into a hole. Overtraded to get out of it and got in deeper.

Good podcast on the subject. Apparently all the money he was donating to the Democrats was to ram legislation through to fuck his decentralized competitors.

I spent a few days unravelling this during/after it happened and a bunch of fluff pieces on him are now doing the rounds. I'm not sure which way the podcast is portraying it, but these are the facts.

He stole customer deposits from his exchange which is meant to hold 1:1 deposits to reserves to front run, price manipulate and gamble with on his trading platform. Even if he didn't get into a hole trading he was committing fraud and the exchange was never holding 1:1

He also used his FTX token to "print money". Offered 15% rewards for staking to pump and fake its valuation to use as collateral to get loans.

This wasn't a bad risk management issue. It was a straight up ponzi fraud which had a backdoor built in to it from day 1 to circumvent compliance and steal customer funds.

[Thin Lizzy]

I spent a few days unravelling this during/after it happened and a bunch of fluff pieces on him are now doing the rounds. I'm not sure which way the podcast is portraying it, but these are the facts.

He stole customer deposits from his exchange which is meant to hold 1:1 deposits to reserves to front run, price manipulate and gamble with on his trading platform. Even if he didn't get into a hole trading he was committing fraud and the exchange was never holding 1:1

He also used his FTX token to "print money". Offered 15% rewards for staking to pump and fake its valuation to use as collateral to get loans.

This wasn't a bad risk management issue. It was a straight up ponzi fraud which had a backdoor built in to it from day 1 to circumvent compliance and steal customer funds.

Didn’t know about this. Apparently, his compliance head was involved in an online poker fraud scheme where they could see players hole cards. Those companies were based in the Bahamas too. Guys probably just moved from online poker to crypto.

[Flexacon]

Didn’t know about this. Apparently, his compliance head was involved in an online poker fraud scheme where they could see players hole cards. Those companies were based in the Bahamas too. Guys probably just moved from online poker to crypto.

There are people who think Sam and the other young faces involved must have had handlers to pull this off.

Also after FTX filed for bankruptcy a "hacker" stole some of the remaining crypto assets, $200 million+

It was done at such speed and in a clinical way that only someone with knowledge of the internal system could pull off. They also spread malware across the app and site and wiped some databases.

[Mayday]

CoinSpot and KuCoin apparently up next.

I have an account on Coinspot from 2021, it’s shit, total lack of liquidity. I had 60k across a bunch of alts of which I had 15k profit. By the time I sold I was at break even lol. Even 3k sell moved the damn price. On the main exchange I can move 500k in 30 seconds with barely a whiff of movement.

Anyhoo I received an email from them yesterday asking for me to verify my identity. Naughty people had no KYC when they were supposed to back in 2021 and only now catching up to it. Likely means they are looking to cover asses. A second email from them came through minutes later saying how easy it was for me to transfer my crypto coins onto their exchange……

[Theoak*]

My crypto bottom call was wrong so it means all my other crypto numbers will also be wrong and my assumptions on dominance will be wrong.

I waited almost 8 months for that entry from mid 50s down to 17.5k. Onto the next target now which is sub 8k.

Sub 8k, I don't think so. Maybe if binance went down but I'd assign less than 10% chance. The contagion will probably spread to smaller players but none that effected that market quite like luna and 3ac. That wiped 10k off the price.

Who are the players to go down to wife another 8-10k? Genesis  trading, binance, tether?

If 15-16k is the bottom and the industry as a whole benefits from this then next bull run  target might surpass  your 96k prediction.

[Mayday]

Sub 8k, I don't think so. Maybe if binance went down but I'd assign less than 10% chance. The contagion will probably spread to smaller players but none that effected that market quite like luna and 3ac. That wiped 10k off the price.

Who are the players to go down to wife another 8-10k? Genesis  trading, binance, tether?

If 15-16k is the bottom and the industry as a whole benefits from this then next bull run  target might surpass  your 96k prediction.

Blockfi now gonesk, just emailed clients they’ve frozen everything. No liquidation yet from them so that will happen shortly.

CoinSpot is on the edge aswell. Kucoin also in trouble.

Saylor gets his next margin call at 13.5k and he keeps posting collateral NOT paying cash for calls which means he can’t close his position.

At 15.5k plebs were buying alts meanwhile Big money was running away from a 8.5k price……

[Mayday]

Speaking of targets, the 3AC guys were the first degenerates and said the exchange leaked their trades and stops so they got hunted down and belted.

So there is some background fighting going on. Saylor definitely has a huge target on his back so it isn’t all that crazy to think his stops will be run or he has death by a thousand paper cuts. Each day below 31k he is underwater and carrying 1B debt @ 6% of which his business doesn’t have the cash to cover.

Saylor thinks BTC skyrockets but perhaps the next top is 48k 👀

[Necrosis]

It appears that crypto is a terrible investment.

bitcoin is literally one of the best investments in the last ten years, i believe it is factually the best in terms of ROI. You mean this current downtrend?

[Theoak*]

Blockfi now gonesk, just emailed clients they’ve frozen everything. No liquidation yet from them so that will happen shortly.

CoinSpot is on the edge aswell. Kucoin also in trouble.

Saylor gets his next margin call at 13.5k and he keeps posting collateral NOT paying cash for calls which means he can’t close his position.

At 15.5k plebs were buying alts meanwhile Big money was running away from a 8.5k price……

Genesis just went down.

https://twitter.com/GenesisTrading/status/1592867198900768769?s=20&t=9zWCmAxESAKmAURSHeeb7w

[Mayday]

Genesis just went down.

https://twitter.com/GenesisTrading/status/1592867198900768769?s=20&t=9zWCmAxESAKmAURSHeeb7w

Which has contagion to Gemini who also just went down. Apparently Saylor took a loan from Genesis but I can’t find the details on it.

Now apparently Silvergate Bank have contagion to this mess and they are the ones who lend money to Saylor……. The guy who posts collateral to cover margin calls instead of selling BTC and using that money to pay the margin call……

Saylor intends to use every single BTC as collateral to cover margin calls down to 3,500. If something were to cause discomfort to Silvergate they could advise Saylor to close his position in which case at a price of 13.5k he would become a disgruntled seller of 35k BTC to close.

Wadda mess

[a_pupil]

Which has contagion to Gemini who also just went down. Apparently Saylor took a loan from Genesis but I can’t find the details on it.

Now apparently Silvergate Bank have contagion to this mess and they are the ones who lend money to Saylor……. The guy who posts collateral to cover margin calls instead of selling BTC and using that money to pay the margin call……

Saylor intends to use every single BTC as collateral to cover margin calls down to 3,500. If something were to cause discomfort to Silvergate they could advise Saylor to close his position in which case at a price of 13.5k he would become a disgruntled seller of 35k BTC to close.

Wadda mess

That saylor guy needs to be taken behind the barn and put out of his misery. What an idiot lol.

[Theoak*]

Which has contagion to Gemini who also just went down. Apparently Saylor took a loan from Genesis but I can’t find the details on it.

Now apparently Silvergate Bank have contagion to this mess and they are the ones who lend money to Saylor……. The guy who posts collateral to cover margin calls instead of selling BTC and using that money to pay the margin call……

Saylor intends to use every single BTC as collateral to cover margin calls down to 3,500. If something were to cause discomfort to Silvergate they could advise Saylor to close his position in which case at a price of 13.5k he would become a disgruntled seller of 35k BTC to close.

Wadda mess

Gemini hasn't gone down......yet.


"Gemini exchange fully back online; all customer funds held on the Gemini exchange are held 1:1 and available for withdrawal at any time."

[Humble Narcissist]

bitcoin is literally one of the best investments in the last ten years, i believe it is factually the best in terms of ROI. You mean this current downtrend?

It is a classic ponzi scheme. Those who got in and out early made big money. Everyone else was duped.

[Necrosis]

It is a classic ponzi scheme. Those who got in and out early made big money. Everyone else was duped.

Its after going up and down many times, its not a ponzi scheme. Crypto does have real world applications and is a natural advancement on cloud computing.

This is an exchange issue, not a crypto issue.

[Thin Lizzy]

Its after going up and down many times, its not a ponzi scheme. Crypto does have real world applications and is a natural advancement on cloud computing.

This is an exchange issue, not a crypto issue.

Price cuts through all the bullshit. Once the  etf went public, Bitcoin went down the toilet for good. Classic pump and dump.

EVERYONE who bought this lost money:

[TheGrinch]

Bernie Madoff, Bankman-Fried, Zelensky, Fink, Yellen, Soros.  Wonder what all these people have in common?

[Flexacon]

Price cuts through all the bullshit. Once the  etf went public, Bitcoin went down the toilet for good. Classic pump and dump.

EVERYONE who bought this lost money:

Bitcoin has pumped and then dumped over 80% 3 times already. It's on it's 4th cycle now, it's pumped and now almost dumped 80%.

A lot of money is waiting to buy it when does dump 80% plus. This will push the price up and then others start to FOMO in. Price eventually squeezes. It's just market dynamics now. Only new/unfavourable regulation stops another cycle.

[sculpture]

Its junk

[IroNat]

Buy tulips.

[Dave D]

Buy tulips.

Lol

[sync pulse]

As I understand it...Cryptocurrency works because of computer banks doing math/mining ALL the time...What if over time computer banks stop running the programs?...All the wealth disappears?...What if after it stops someone tries to restart "The Bitcoin Algorithm"...Would the wealth reappear?

[Humble Narcissist]

Buy tulips.

This ain't Denmark.

[Necrosis]

Price cuts through all the bullshit. Once the  etf went public, Bitcoin went down the toilet for good. Classic pump and dump.

EVERYONE who bought this lost money:

This has happened three times already, so its more of a pump n dump, pump and dump, pump and dump and pump and now this dump.


There is nothing classic about that. Again, it is one of the best investments in the last ten years.  so if its a classic pump and dump we are all fucked.

[Flexacon]

Big money now sprinting away from Grayscale 👀

48% discount now. Big money isn’t interested at 8,700 right now.

Contagion. The worry is 3AC unwinding might end up taking down Greyscale. Also some less than convincing tweets from greyscale trying to reassure their clients