dropnerd

there might be some corporate firesales, but what makes you think any government is going to backstop the crypto market to prevent contagion?

defi/spot is in a much healthier place than cefi.

when you're hodling, there's nothing that can liquidate you.

when you're using a defi protocol, you capture all the upside for the risk you're taking.

when you're using a cefi "bank", the bank keeps some of the spread when they're up, and goes insolvent when they're down. heads they win tails you lose.

3ac probably made 3 bad trades:

- long ust/luna

- long gbtc, short btc

- long steth, short eth

will focus on last two trades in this comment.

gbtc is like a bond that eventually pays out as btc when regulatory approval comes.

steth is like a bond that eventually pays out as eth a few months post-merge.

but in the aftermath of the luna/ust crisis and general crypto bear, there was a flight to safety (gbtc is less liquid than btc, steth is less liquid than eth), causing the gbtc/btc and steth/eth spreads to widen instead of narrow, and 3ac was caught out of position.

tldr: they probably profited some from short btc but lost more on long gbtc.

i think what they're trying to say is that these firms just look like traditional trading firms, not like defi. opaque backroom billion dollar handshakes go wrong, contagion spreads, ltcm/2008 style.

main difference- there's no government bailout coming.

most crypto trading firms have been rewarded for this behavior over the last few years, so the lesson is hard to unlearn

eBay started on collectibles, looks like the leadership still has their ears to the ground

do most miners choose to run cards without fans because of known issues?

1. crypto nerds build a system that gives everyone transparent, real-time view into counterparties and leverage

2. opportunists build an opaque system on top and promises retail the world

3. opaque systems collapse, retail gets burned

so suppose there was some impropriety in the fund movement, who would be able to audit this?

on the blockchain, it's anyone who knows how to use a block explorer.

how so? for example, i operate a pseudonym.

pseudonymity is a reasonable compromise.

different tokens have different purposes, but you could describe vc investing as maximizing speculative windfalls, and that's how many traders view their tokens.

i can't speak to your friends' behavior, but you can buy tokens and do well without putting money behind the do kwons of the world.

coinbase's nft marketplace has <0.01% of the marketshare. they launched without using their key advantage- custodial relationship with the customer. coinbase nft should have been a custodial marketplace. this is definitely on someone in product, though it's unclear whether it's on surojit.

there's no widely adopted index fund in the crypto world. to get exposure to a variety of ideas, one inevitably buys some that don't work and yes, some where the project runners commit fraud.

similar problems exist in vc-land and even public equities. if you owned a s&p 500 fund in 2000, then you owned a piece of enron.