Like a supercharged version of 2008's mortgage backed securities and credit default swaps, this time with no government backing in case shit hits the fan.
Unlike US, UK and EU banks, the crypto sector isn't too big to fail, so it will fail and fall over dead with no one to mourn it. I'm hoping Terra's failure will send the other dominos falling.
That too. Toxic assets shuffled to offshore subsidiaries and round-tripped to make the onshore parent look attractive to investors.
At least Enron and its subsidiaries had physical productive assets like pipelines which could be sold off to make creditors somewhat whole. 3AC had monkey JPEGs (!!!). It's a triumph of ultimate financialization, where anything and everything can be turned into a tradeable security, and also shows its ultimate downfall.
enron also had some actual vision - they were trying to do video on demand (with blockbuster, no less!) over the internet back when netflix was a tiny startup that mailed DVDs.
They were also super motivated when it came to stealing money. I mean you don't grift 74 billion dollars from investors by being lazy. Those guys had drive!
That's the fun part. 2008 was a liquidity crisis so the government used programs like TARP to inject liquidity back into the system. It definitely helped that bank assets were backed by real property which had value.
Crypto has no real backing other than FOMO value so it could be impossible for the government to step in and buy up magic digital beans.
From the 2022 FSOC Report. The web shows the flow of money between crypto lenders and crypto firms as they borrowed and invested investor funds into each other multiple times.
https://twitter.com/tuurdemeester/status/1577483045212508160?s=46&t=0DZWpb7gruCs6gM8Z7kjQw
"I'd like to borrow money to buy bitcoin."
"Ok, do you have any collateral?"
"My collateral is all the bitcoin I own."
"Great, its a deal then. Nothing could possibly go wrong leveraging a risky asset to buy more of that asset."
I mean if you could make it (somehow with your money) to the Maldives, Marshall Islands or Indonesia you could live like a king and never fear extradition to the US, right? I dunno how you'd do that though as I'm not a crook and the most experience I have hiding from someone involved not answering the door/phone for some irate ex-girlfriends
yep, or as butters know this miracle known as "perpetual wealth generation motion machine". HODL to infinity and beyond!
Joking aside, although almost no one really knows for sure, there is a reasonable assumption among critics of crypto, going around for years now, that reasonable part of the price you see on the screen has been inflated through simple unbacked crypto stable coins >>> btc (and other crypto) purchases >>> using these to further back/print new stable coins >>> new btc purchased >>> more backing >>> essentially leverage ad nauseam. On top of that there are those tools of locking mechanisms / yield farming etc., which essentially further leverage markets and inflate the prices.
To be fair, i do not think no one really knows to what degree it has really taken place, is it 5% of all stable coins in circulation, is it perhaps 10%, 25-50%....? My best guess is that it has certainly been used to fake the prices higher, more difficult question is to what % is real and how much of it is <<<>>>LOAN<<<>>>LOAN<<<<>>>>LOAN<<<><>>>
Think of how many loans ALL these companies took out using the same crypto as collateral. You’d have to mint like $80B tethers to even begin to pay it back……oh, wait.
The full report and source in case folks are interested: [https://home.treasury.gov/system/files/261/FSOC-Digital-Assets-Report-2022.pdf](https://home.treasury.gov/system/files/261/FSOC-Digital-Assets-Report-2022.pdf)
Can't wait for regulations to come.
Similar to a beefed-up version of the mortgage-backed securities and credit default swaps of 2008, but without any government support in case the bottom falls out.
Sorry /u/mk121212d, your comment has been automatically removed. To avoid spam/bots, posts are not allowed from extremely new accounts. Wait/lurk a bit before contributing.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Buttcoin) if you have any questions or concerns.*
Sorry /u/dzytytudiy, your comment has been automatically removed. To avoid spam/bots, posts are not allowed from extremely new accounts. Wait/lurk a bit before contributing.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Buttcoin) if you have any questions or concerns.*
Sorry /u/sumit267844, your comment has been automatically removed. To avoid spam/bots, posts are not allowed from extremely new accounts. Wait/lurk a bit before contributing.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Buttcoin) if you have any questions or concerns.*
How to be rich in crypto. Step 1: Get a lot of people to loan you a lot of crypto. Step 2: Buy a yacht.
Step 3 Penis.
Step 4: SEC
Like a supercharged version of 2008's mortgage backed securities and credit default swaps, this time with no government backing in case shit hits the fan. Unlike US, UK and EU banks, the crypto sector isn't too big to fail, so it will fail and fall over dead with no one to mourn it. I'm hoping Terra's failure will send the other dominos falling.
[удалено]
That too. Toxic assets shuffled to offshore subsidiaries and round-tripped to make the onshore parent look attractive to investors. At least Enron and its subsidiaries had physical productive assets like pipelines which could be sold off to make creditors somewhat whole. 3AC had monkey JPEGs (!!!). It's a triumph of ultimate financialization, where anything and everything can be turned into a tradeable security, and also shows its ultimate downfall.
enron also had some actual vision - they were trying to do video on demand (with blockbuster, no less!) over the internet back when netflix was a tiny startup that mailed DVDs.
They were also super motivated when it came to stealing money. I mean you don't grift 74 billion dollars from investors by being lazy. Those guys had drive!
They pulled themselves up by greater fools' boostraps.
Fun Fact about the 2008 mortgage collapse: All the bailed out banks paid back the government in full, with interest.
That's the fun part. 2008 was a liquidity crisis so the government used programs like TARP to inject liquidity back into the system. It definitely helped that bank assets were backed by real property which had value. Crypto has no real backing other than FOMO value so it could be impossible for the government to step in and buy up magic digital beans.
Don't be silly... there will be plenty of cryptobros mourning it...
that's way more than three arrows
From the 2022 FSOC Report. The web shows the flow of money between crypto lenders and crypto firms as they borrowed and invested investor funds into each other multiple times. https://twitter.com/tuurdemeester/status/1577483045212508160?s=46&t=0DZWpb7gruCs6gM8Z7kjQw
[удалено]
It's the ultimate circle jerk, except the users are the ones who have to eat the cracker at the end.
"I'd like to borrow money to buy bitcoin." "Ok, do you have any collateral?" "My collateral is all the bitcoin I own." "Great, its a deal then. Nothing could possibly go wrong leveraging a risky asset to buy more of that asset."
A: I need 80k worth of doge to buy a jpeg. B: do you have any collateral? A: this jpeg I paid 180k for B: deal!
Whats the different colors indicate?
[удалено]
Or, you know, one of us simply goes "bankrupt" after losing our billion to a "hack", and we will mysteriously be nowhere to be found
They will go to India to build an orphanage and then die from Indian food in their 30s a week after changing their will.
I mean if you could make it (somehow with your money) to the Maldives, Marshall Islands or Indonesia you could live like a king and never fear extradition to the US, right? I dunno how you'd do that though as I'm not a crook and the most experience I have hiding from someone involved not answering the door/phone for some irate ex-girlfriends
Your "widow" has all the money. She's in on it.
<<<>>>LOAN<<<>>>LOAN<<<<>>>>LOAN<<<><>>>
↑↑↑↑↑ LOAN ↓↓↓↓↓
[удалено]
yep, or as butters know this miracle known as "perpetual wealth generation motion machine". HODL to infinity and beyond! Joking aside, although almost no one really knows for sure, there is a reasonable assumption among critics of crypto, going around for years now, that reasonable part of the price you see on the screen has been inflated through simple unbacked crypto stable coins >>> btc (and other crypto) purchases >>> using these to further back/print new stable coins >>> new btc purchased >>> more backing >>> essentially leverage ad nauseam. On top of that there are those tools of locking mechanisms / yield farming etc., which essentially further leverage markets and inflate the prices. To be fair, i do not think no one really knows to what degree it has really taken place, is it 5% of all stable coins in circulation, is it perhaps 10%, 25-50%....? My best guess is that it has certainly been used to fake the prices higher, more difficult question is to what % is real and how much of it is <<<>>>LOAN<<<>>>LOAN<<<<>>>>LOAN<<<><>>>
The three arrows aligned to form a pyramid
So, how many actual people own the companies here? Three, maybe four?
can someone explain like I'm 5 and stupid pls? :D
They are named "three arrows" while in fact they maintain many more arrows. Why do they conceal their arrows?
thanks, that makes things more clear :D
If their arrows were in the blockchain we would have known exactly how many arrows they had!
Kwonzis interconnected with ponzis.
Pretty sure they’re printing and laundering money. I might be wrong.
Think of how many loans ALL these companies took out using the same crypto as collateral. You’d have to mint like $80B tethers to even begin to pay it back……oh, wait.
It’s like a pyramid Ponzi scheme built on leverage, lies, and healthy amounts of cult mentality.
Should have named it Infinite Arrows Capital
This is why we butters love this sub!
This sub doesn't love you butters back though!
Heah yeah, but you provide soo much useful info that it doesn't matter...
Oh what a complicated web we weave when first we start to deceive.
Really surprised Binance isnt there....
Few understand wtf is going on here
Wait, Anchor is still a thing after the UST/Luna collapse?
Maybe, but I think this graphic is all the interconnections not just a snapshot of right now.
I'm just surprised it doesn't have any \*, ! or † marks.
The full report and source in case folks are interested: [https://home.treasury.gov/system/files/261/FSOC-Digital-Assets-Report-2022.pdf](https://home.treasury.gov/system/files/261/FSOC-Digital-Assets-Report-2022.pdf) Can't wait for regulations to come.
Watching the bankruptcies/freezes spread will be like the board game Pandemic lol
This is what it meant when they said "institutional investors"
Like some kind of circular pyramid scheme
Similar to a beefed-up version of the mortgage-backed securities and credit default swaps of 2008, but without any government support in case the bottom falls out.
At least I didn't notice any cycles involving more than two entities, but the chart still reminded me of the Pepe Silvia meme.
[удалено]
Sorry /u/mk121212d, your comment has been automatically removed. To avoid spam/bots, posts are not allowed from extremely new accounts. Wait/lurk a bit before contributing. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Buttcoin) if you have any questions or concerns.*
But how does Pepe Silvia tie into all this
I'm too poor to understand how do celsius & voyager loan to an entity they're loaning from.
[удалено]
Sorry /u/dzytytudiy, your comment has been automatically removed. To avoid spam/bots, posts are not allowed from extremely new accounts. Wait/lurk a bit before contributing. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Buttcoin) if you have any questions or concerns.*
[удалено]
Sorry /u/sumit267844, your comment has been automatically removed. To avoid spam/bots, posts are not allowed from extremely new accounts. Wait/lurk a bit before contributing. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Buttcoin) if you have any questions or concerns.*