Let's talk about Cryptocurrencies

[Roof-Daddy]

Originally Posted by PsYcNeT

I mean, people buying early and dumping on new buyers isn't exactly uncommon, nor does it negate the Ponzinomic tendency of ####coins.

Lots of ####coins 10,000x if you bought at the absolute bottom when literally no one else was trading it, then held it for nearly 2 years and then sold at the absolute top for the 3 hours it peaked. The fantasy is that anyone but a handful of randos (and the devs) actually manage to do this.

Of course.

[afc wimbledon]

Originally Posted by Roof-Daddy

You can go on etherscan and view Hex transactions.

People sell all the time and take the cash.

I personally know two people who cashed out huge amounts.

That doesn't mean it isnt a Ponzi scheme, all ponzi schemes payout, they have to to suck more and more 'investors' (rubes) in, the idea is to pay out less than you take, create excitement and greed in your pool of suckers (investors) and then when you think you've taken enough money from them as they have you close down the account and run with whatever you can grab, of course all the time you are doing this you are also paying yourself a huge wage, living high on the hog and skimming as much as you can in a low key way as the final crash tends to be unpredictable and so you cant be sure how much you can grab as you leave, crypto of course had the added advantage that as the market rocketed up it was possible to sell worthless tokens and NFT's anyway so you could run a ponzi scheme and payout without actually having to go into the pool, the fact that the price of crypto's is falling is why you will soon see which are ponzis or just frauds and which are not

[Yoho]

https://twitter.com/user/status/1592742505808039936

A fool and his money are soon parted.

[topfiverecords]

Do you work for Twitter?

[Azure]

But nobody had a clue! Nobody! Not his rich celebrity buddies. Not the Democrats who accepted millions and millions of dollars in political donations. Not Kevin O'Leary who still thinks he's a genius. Not Maxine Waters who was busy worshipping the ground he walks on, and is now supposed to investigate him. Nobody! But this guy figured it out in 1 day of actually asking some questions and looking at the books.

https://twitter.com/user/status/1593222595390107649

[Azure]

1 week in, this surfaces. They must have some amazing investigators looking into the FTX books, seeing as they could uncover all this fraud that nobody else had a clue about!

https://twitter.com/user/status/1593691628451012610

[monkeyman]

What a total fraud this guy turned out to be. The genius philanthropist...

[JohnnyB]

Good thing the midterms are over. It's going to hurt the Dems a bit when the $100 million contribution to their campaign by FTX gets clawed back in the bankruptcy proceedings.

[Azure]

He also funded some GOP members as well I believe, but yeah this is a terrible look all across the board.

Not hard to find videos online where high ranking Democrat members were cozying up with SBF.

[GGG]

Originally Posted by Azure

But nobody had a clue! Nobody! Not his rich celebrity buddies. Not the Democrats who accepted millions and millions of dollars in political donations. Not Kevin O'Leary who still thinks he's a genius. Not Maxine Waters who was busy worshipping the ground he walks on, and is now supposed to investigate him. Nobody! But this guy figured it out in 1 day of actually asking some questions and looking at the books.

https://twitter.com/user/status/1593222595390107649

This is just a run of the mill fraud. It’s not exciting at all. Company without proper financial controls used money avoid scrutiny and played off the credibility of others.

[Yoho]

Interesting take.

https://twitter.com/user/status/1594508263198191617

[afc wimbledon]

Originally Posted by Yoho

Interesting take.

https://twitter.com/user/status/1594508263198191617

It sort of fails to take psychology into account, that what would kill crypto is a combination of it being yesterday's thing and indelibly associated with fraud in the mind of the casual participant, the size of the frauds is almost immaterial to that, it's the publicity of it all, if all you ever hear about is that it's all a con and it's sort of dead then the casual buyer isnt jumping back in

[PsYcNeT]

https://twitter.com/user/status/1594484656614903812

[Enoch Root]

Originally Posted by afc wimbledon

It sort of fails to take psychology into account, that what would kill crypto is a combination of it being yesterday's thing and indelibly associated with fraud in the mind of the casual participant, the size of the frauds is almost immaterial to that, it's the publicity of it all, if all you ever hear about is that it's all a con and it's sort of dead then the casual buyer isnt jumping back in

For sure. Also, in 2013, the people trading Bitcoin were almost entirely crypto nerds, and little details like exchanges collapsing were easy to dismiss (like the early years for Tesla - nothing would sway Tesla fans).

Now crypto is seeking to be mainstream, and FTX caused billions in losses to high profile entities. It is a completely different situation.

[Azure]

Five Bloomberg journalists were presented with a story about all the mess at FTX back in July, but they denied it saying “it was bad for business.”

Marc Cohodes, a short seller who’s made his career betting against fraudulent companies, said in a recent interview with popular internet detective Coffeezilla that he presented a story about FTX to Bloomberg crypto team four months before the platform’s meltdown, but they denied the story.

https://nftsunboxed.com/bloomberg-de...-for-business/

So along with the news that the US was investigating FTX for months as well, at what point is this negligence in not reporting an issue to protect people who had a bunch of money on there?

[PsYcNeT]

I mean it's a damned if you do, damned if you don't kind of scenario. If you suspect there's foul play but don't have the evidence to prosecute, you still end up causing a bank run when you publicly confront the exchange and you put the government at a liability.

[Jason14h]

So latest reports are 70-100 million in political donations to the Democratic Party , Parents with 120 million in real estate , personal withdrew 300 million, and his GFs father being head of SEC

So it was just a typical bribe the government fraud like any other industry ! Who says crypto is any different

[JohnnyB]

Originally Posted by Jason14h

So latest reports are 70-100 million in political donations to the Democratic Party , Parents with 120 million in real estate , personal withdrew 300 million, and his GFs father being head of SEC

So it was just a typical bribe the government fraud like any other industry ! Who says crypto is any different

His girlfriend's dad wasn't head of the SEC. Her dad had a supervisory role over Gensler when he was in academics, before taking his role with the SEC.

It is a massive fraud, conducted off-chain by centralized players. Apart from the relationships you mention there was also many failures from firms that should have been doing due diligence on their investments in FTX and just weren't doing it. Lots of big players from traditional finance also choosing not to look at the problems because they were just focused on the market opportunity.

If they had actually just played the game straight, they could have been printing money forever with a legitimate business model. Instead, they're bankrupt and pulling other big players down with them despite btc still being worth 4x what it was three years ago and eth being worth 11x what it was three years ago before the last bull run..

[Fuzz]

Originally Posted by JohnnyB

His girlfriend's dad wasn't head of the SEC. Her dad had a supervisory role over Gensler when he was in academics, before taking his role with the SEC.

It is a massive fraud, conducted off-chain by centralized players. Apart from the relationships you mention there was also many failures from firms that should have been doing due diligence on their investments in FTX and just weren't doing it. Lots of big players from traditional finance also choosing not to look at the problems because they were just focused on the market opportunity.

If they had actually just played the game straight, they could have been printing money forever with a legitimate business model. Instead, they're bankrupt and pulling other big players down with them despite btc still being worth 4x what it was three years ago and eth being worth 11x what it was three years ago before the last bull run..

What business model was that?

[PsYcNeT]

Centralized crypto is my favorite oxymoron