KevinC
3546
Getting closer in USD too!
Sorry, didn’t realize USD/EUR diverged so much.
Ops, no, that it added up so much over that amount. Always do the math.
Hope springs eternal in the cryptobro’s breast!
Time to go check on https://www.reddit.com/r/CryptoCurrency/. When the suicide hotline gets pinned, you know it’s almost time to buy the dip.
I’m too old now but I have a hard time reading reddit. I mean, i have a hard time ‘reading the room’ of a reddit sub, like /cryptocurrency. My instinct is that it’s 95% performative posting and not representing anything ‘real’.
Like when i read “I joined early 2021 and I’m very excited. Yeah I’m down overall over 50%, yes most of my alts are down over 70%. But all I see is opportunity.” This is just performative posting, right? Or if this bro is actually down 50%, they’re down like 50% of the $100 they invested. Do people actually invest a substantial portion of their money in crypto just for Reddit Cred? Surely not… no one could even know if you did or not anyway.
KevinC
3551
No way to tell but whether they do or not, it’s very much in their interest that others believe they do and similarly invest (or at least not sell) to prop up the ponzi scheme.
I do think that there’s a lot of true believers, though. I mean look at cryptobros can never shut the fuck up about crypto. It seems to be part of their identity so it wouldn’t surprise me if they invested for “cred”.
Like every other social platform, those subs are gonna have their fair share of bots botting away for the pumpers all day long, with the added bonus that the whole crypto space ain’t exactly gonna waste effort policing views that are positive towards crypto, regardless of their origin.
ShivaX
3553
This.
Crypto only makes you money if other suckers pay into it. So it’s in your best interest to hype crypto 24/7/365 so you don’t end up being the sucker.
Awww
Crypto hedge fund Three Arrows fails to meet lender margin calls
US-based crypto lender BlockFi and Genesis, two of the biggest crypto financial services groups, were among the groups that liquidated at least some of Three Arrows’s positions, meaning they reduced their exposure by taking collateral the fund had put down to back its borrowing, according to people familiar with the matter.
Three Arrows, which made a “strategic” investment in BlockFi in 2020 that it exited the following year, had borrowed bitcoin from the lender, the people said, but had been unable to meet a margin call. One of the people said the liquidation had occurred by mutual consent.
[…]
lol
Three Arrows, run by Zhu and his co-founder Kyle Davies, is known for its bullish levered bets on crypto. Zhu had espoused a “supercycle” view of crypto, in which increasing mainstream adoption meant prices would continue to rise without falling back into a near-term bear market.
Last month, he acknowledged the current sell-off had proved him wrong. “Supercycle price thesis was regrettably wrong, but crypto will still thrive and change the world every day,” Zhu wrote on Twitter in late May.
[…]
But, wait, there’s more!
Until early 2021, GBTC had traded at a premium to the price of bitcoin. That offered an arbitrage opportunity for funds such as Three Arrows, which could borrow bitcoin, deposit it with Grayscale in return for GBTC units, which could then be sold at a profit on the open market. Grayscale does not allow redemptions of GBTC for the underlying bitcoin.
Three Arrows owned almost 39mn units of GBTC at the end of 2020 then worth $1.2bn, according to its last report to the SEC in January 2021. The same position today would be valued at just $550mn.
Just to highlight that this is in fact affecting all of crypto:
Bitcoin and Ethereum, which are doing comparatively “well,” are down 70% and 78% from their all-time highs respectively.
I’ve worked at a place that literally showed the Alec Baldwin speech from Glengarry Glenn Ross to incoming sales folks as part of their initial training to “inspire” them to aim to be the Baldwin character. No joke. They thought it was motivational.
I guess they are too busy changing their brand to Kelvin.
JoshL
3559
Omg, it’s happening. Is it happening?
Ethereum and Solana took huge hits at the same time too. Maybe others, not sure what to look for.
This news may have helped with the additional pressure. It’s like dominos now. All these ‘projects’ are all exposed to each other and as one crumbles, another tips closer the edge themselves.
KevinC
3562
What the? It dropped $1,000 within 5 minutes? Is that something to do with this how the data is reported or did it really drop that suddenly?
Still waiting for Tether to go. Once that happens it’s game over (at least for this run).
Welcome to crypto!
Movements like that are gonna happen because holdings of it are very concentrated - and, as the sell-off continues, getting even more concentrated. If a big player decides to cash out (or is forced to because the fall of crypto means they no longer have collateral for loans,) it’s going to leave a mark.
It’s worth remembering that there was Bitcoin before Tether, which means there might still be Bitcoin after.
If Tether were to collapse. it would likely mean the end of the greater crypto ecosphere, since it would dispel the illusion that this is a serious big-boy rival to actual financial systems. But Bitcoin itself might endure as long as there’s a trickle of suckers, just as some MLMs have endured. Though it may be greatly diminished (Bitcoin was trading at $500 before Tether came along.)
Tether, meanwhile, is starting to sound like a country with currency controls just before a run on the currency.
When in doubt, label arbitrage as a conspiracy.
