Let's talk about Cryptocurrencies

[Yoho]

https://twitter.com/user/status/1591240664779743232

[tony-soprano]

https://twitter.com/user/status/1591545782229925889

[opendoor]

Originally Posted by afc wimbledon

That doesn't make sense, you have to sell the crypto in the same way you have to sell a stock in order to cash out, that is never instant, the exchange might take on the risk and so it would seem instant to a seller but the exchange is still offering up bitcoin for sale in a bear market where the price is dropping like a stone, they have enough crypto to move they might not be able to find a buyer

They wouldn't be selling the crypto on an exchange though. Liquidity pools handle transactions automatically and virtually instantly. Part of putting your crypto into the pool is that in return for the yield you get from transaction fees, you agree that your coins will get bought and sold at whatever price the Automatic Market Maker determines (which is based on ensuring the pool remains balanced between the different currencies). So you don't need a willing buyer and seller at any given moment, that's all handled automatically. And as long as there's enough funds in the pool, the transactions can happen basically instantly.

I'm not saying it's a good idea or necessarily stable. If crypto prices decline fast enough that people want to pull money out, then yields have to become higher for it to function (which means higher transaction fees). And it's probably not really possible to scale to widespread use using that method of handling transactions.

[afc wimbledon]

Originally Posted by opendoor

They wouldn't be selling the crypto on an exchange though. Liquidity pools handle transactions automatically and virtually instantly. Part of putting your crypto into the pool is that in return for the yield you get from transaction fees, you agree that your coins will get bought and sold at whatever price the Automatic Market Maker determines (which is based on ensuring the pool remains balanced between the different currencies). So you don't need a willing buyer and seller at any given moment, that's all handled automatically. And as long as there's enough funds in the pool, the transactions can happen basically instantly.

I'm not saying it's a good idea or necessarily stable. If crypto prices decline fast enough that people want to pull money out, then yields have to become higher for it to function (which means higher transaction fees). And it's probably not really possible to scale to widespread use using that method of handling transactions.

I don't care what you are selling you always need a willing buyer, now I will give you in normal circumstances be it stocks or what ever as long as you drop your price you will find a buyer but when you are in a run, again be it stocks or houses or crypto, you can find points where there are just no buyers no matter what price you set

[JohnnyB]

Originally Posted by afc wimbledon

I don't care what you are selling you always need a willing buyer, now I will give you in normal circumstances be it stocks or what ever as long as you drop your price you will find a buyer but when you are in a run, again be it stocks or houses or crypto, you can find points where there are just no buyers no matter what price you set

You can think of the buyer as the liquidity pool itself. A liquidity pool is like having an account that is already full of money, and the account is automated so that you can just swap your tokens for the money in the account. The rate at which you can swap is constantly being automatically adjusted as a function of how much money is in the account and the demand for the tokens.

If nobody wants the tokens and so everyone is trying to sell them into the pool, then the pool can just run out of money, just like a run on a bank. At that point, the tokens are basically worthless until some demand for them is generated again and some people are willing to start buying them from the pool and providing liquidity again.

But, as long as there is demand for the tokens and the pool doesn't just get drained of money then buying or selling from the pool is very fast because you're just doing a direct swap with what the pool already holds.

[Scrambler]

Originally Posted by jammies

What happened to all the crypto enthusiasts who were in the thread earlier?

I'm still here, sitting on a ton of BUSD as the bear market rambles on. SOL3S gave me +55 this week, got to love them bear leveraged tokens, NFA.

I'm still here is actually an odd thing to say, first time posting in this thread. Probably should have long ago

[JohnnyB]

Originally Posted by Scrambler

I'm still here, sitting on a ton of BUSD as the bear market rambles on. SOL3S gave me +55 this week, got to love them bear leveraged tokens, NFA.

I'm still here is actually an odd thing to say, first time posting in this thread. Probably should have long ago

I think you might have picked a good time. You've avoided a lot of pretty hostile interactions that were taking place earlier. It's kind of surprising that during the current chaos the posting in here somehow seems to have more respectful conversation going on.

[afc wimbledon]

Originally Posted by JohnnyB

You can think of the buyer as the liquidity pool itself. A liquidity pool is like having an account that is already full of money, and the account is automated so that you can just swap your tokens for the money in the account. The rate at which you can swap is constantly being automatically adjusted as a function of how much money is in the account and the demand for the tokens.

If nobody wants the tokens and so everyone is trying to sell them into the pool, then the pool can just run out of money, just like a run on a bank. At that point, the tokens are basically worthless until some demand for them is generated again and some people are willing to start buying them from the pool and providing liquidity again.

But, as long as there is demand for the tokens and the pool doesn't just get drained of money then buying or selling from the pool is very fast because you're just doing a direct swap with what the pool already holds.

to be honest that just sounds insane, a locked in death spiral

[JohnnyB]

Originally Posted by afc wimbledon

to be honest that just sounds insane, a locked in death spiral

Yeah, for it to work on an ongoing basis there really needs to be some ongoing demand for the tokens. If there's no actual use case for the tokens, then people generally dump them when the speculative value dries up, and many tokens go basically to zero in that way. It can work for the tokens that have real ongoing uses that make them desirable outside of speculation.

[The Fonz]

Edit: none of my business

[The Fonz]

Edit: none of my business

[PsYcNeT]

Originally Posted by jammies

What happened to all the crypto enthusiasts who were in the thread earlier?

I'm heavily involved in DeFi and cross-chain interoperability protocols. I haven't kept money on a CEX beyond a couple hundred bucks in two years.

Most of the actual builders in crypto aren't working with centralized entities, they're working to improve the technology and it's real-world applications as permissionless and publicly available infra.

The weird Libertarian idealism that exists in crypto has a strong communitarian streak as well

[Yoho]

https://twitter.com/user/status/1591432730788536321

[Roof-Daddy]

Crypto bottom is not in yet I don't think.

[afc wimbledon]

Originally Posted by Yoho

https://twitter.com/user/status/1591432730788536321

why does this moron think taxpayers should be paying to regulate crypto?

[PsYcNeT]

Originally Posted by afc wimbledon

why does this moron think taxpayers should be paying to regulate crypto?

Because the entire FTX grift was backstopped by SBF (FTX owner, now on the lam) working with Gary Gensler to start regulating it. One assumes he poisoned a lot of other folks in the process while pushing for regulation.

[afc wimbledon]

Originally Posted by PsYcNeT

Because the entire FTX grift was backstopped by SBF (FTX owner, now on the lam) working with Gary Gensler to start regulating it. One assumes he poisoned a lot of other folks in the process while pushing for regulation.

I still dont see why anyone would think the Government should be involved beyond the normal fraud or theft laws, crypto is a highly risky market it seems mostly populated by shysty conmen, if you put your money in it expect to get burnt, that's all anyone needs to know

[monkeyman]

Kevin O'Leary is right. People should learn from their mistakes. two lessons people should've learned by now.

-Never get on a boat with Kevin O'Leary's wife.
-Don't trust a grifter like Kevin O'Leary when it comes to money.

[chemgear]

https://cryptonews.com/news/cryptoco...-stay-away.htm

Cryptocurrency exchange Crypto.com mistakenly sent 320,000 ETH to a wallet address linked to Gate.io in late October. While the platform has since recovered the assets, Binance CEO Changpeng Zhao advised users that it is best they stay away from the platform.

[photon]

https://cointelegraph.com/news/sam-b...-flee-to-dubai

FTX former CEO Sam Bankman-Fried, co-founder Gary Wang and director of engineering Nishad Singh are understood to be in the Bahamas and are “under supervision” by the local authorities.

A source familiar with the matter told Cointelegraph that the three former FTX executives, as well as Alameda Research CEO Caroline Ellison, are looking for ways to flee to Dubai. While the plan was made assuming that the United States “doesn't have any extradition treaties” with the UAE, the nations signed a mutual legal assistance treaty (MLAT) back on Feb. 24, 2022, to work against criminals.