****Official Crypto Degen Thread****
- Thread starter Moral
- Start date
Banks in the 1800s had to be able to provide the gold allegedly on deposit for your receipt. Just as you couldn’t snap your fingers and fill the vault with gold, you can’t snap your fingers and fill the vault with bitcoin.
The Federal Reserve Note was introduced so that the ‘authorities’ could always snap their fingers, print more money, and bail out their cronies.
This is what Bernanke did in response to the 2008 crisis. Instead of allowing capitalism to liquidate the failures global society that uses the USD for exchange was robbed to keep some members of Wall Street whole.
This is why bitcoin was invented. Powell can’t print any of it to give away, and the Treasury can’t stop you from transferring your balance. It’s beyond their control. If anyone wonders what value that might provide to this medium of exchange, ask someone who contributed to the trucker protest in Canada and had their bank accounts arbitrarily frozen without any due process.
He asked ‘how do you secure value in crypto’
The response is the only correct answer (and a MAJOR point of bitcoin is self custody and need for no third party trust). Exchanges introduce third party trust into the equation.
Maybe the guy asking doesn’t understand you don’t have to hold your balance in an exchange, but can secure your own wallet? It’s the only way his question, as posed, makes any sense.
5 Good Takeaways From A Bad Crypto Year
2022 was a tough year for crypto. Nevertheless, there are also some positive things. Here are 5 positive takeaways for crypto investors.
ren-heinrich.medium.com
Yes, how very ‘gross’ of the NY Post to ‘creep’ pictures she had put online for the world to see.
Clear privacy violation.
As if the collapse of Sam Bankman-Fried’s crypto empire wasn't bad enough, its fallout just got much messier after digital-asset entrepreneur and Facebook billionaire, Cameron Winklevoss, accused fellow crypto businessman Barry Silbert of “bad faith stall tactics” and the commingling of funds within his conglomerate that Winklevoss says have left $900 million in customer assets needlessly in limbo since FTX’s meltdown.
First, some background: in early November, shortly after FTX imploded, Gemini Trust which was founded by the Winklevoss twins, paused redemptions on a lending product called Earn, which offered investors the potential to generate as much as 8% in interest on their digital coins. It did so by lending them out to Genesis Global Capital, one of the companies owned by Silbert’s Digital Currency Group. The Earn halt came after Genesis suspended both redemptions and new loan originations at its lending unit because of its exposure to FTX. Genesis has told clients that it could take “weeks” to find a path forward, and that bankruptcy may be one possibility.
Which brings us to today: this morning, facing pressure of his own from angry customers locked out of their Gemini accounts and a lawsuit alleging fraud, Cameron Winklevoss published an open letter saying he had provided Silbert with multiple proposals to resolve the issue, including as recently as Dec. 25. He told Silbert “this mess is entirely of your own making,” citing some $1.675 billion owed to Genesis by DCG, which it used for other business purposes within Silbert’s conglomerate. “This is money that Genesis owes to Earn users and other creditors.”
“It’s not lost on us that you’ve been working desperately to try and firewall DCG from the problems that you created at Genesis,” Winklevoss added, strongly hinting that the relationship between DCG and Genesis is similar to that between FTX and Alameda. And in case that wasn't clear, the next sentence strikes it home: “You should dispense with this fiction because we all know what you know — that DCG and Genesis are beyond commingled.”
Winklevoss claims the $1.675 billion borrowed by DCG from Genesis was used “to fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades,” referring to another of Silbert’s businesses, Grayscale Investments, whose largest vehicle is the Grayscale Bitcoin Trust. This came, he said, “all at the expense of creditors and all for your own personal gain.”
Winklevoss also asked Silbert to “publicly commit to working together to solve this problem,” which he says affects more than 340,000 Earn customers, by Jan. 8. He didn’t say what would happen if no agreement was reached by then.
Silbert prompted responded in kind, tweeting a refutation to several of Wilkevoss’s accusations, saying “DCG did not borrow $1.675 billion from Genesis” and “never missed an interest payment to Genesis and is current on all loans outstanding,” without providing more detail. Silbert also claimed DCG delivered a proposal for resolving the dispute to Genesis and Winklevoss’s advisers on Dec. 29, but had received no reply.
That would not be the last of it, and moments later, Cameron Winklevoss doubled down, urging Silbert to "stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. It's completely disingenuous. So how does DCG owe Genesis $1.675 billion if it didn't borrow the money? Oh right, that promissory note..."
And then, in an apparent attempt to avoid the nuclear option and filing a notice of default against Genesis - an event that will likely lead to even more havoc and mayhem across the crypto community - WInklevoss tweeted "Will you, or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?"
Previously Silbert's DCG has been trying to emphasize that it’s separate from Genesis and insulated from its troubles. After Genesis suspended redemptions, DCG said in a tweet that “this temporary action has no impact on the business operations of DCG and our other wholly owned subsidiaries.”
Silbert, in a letter to shareholders last month, said that intercompany loans were made “in the ordinary course of business.” He noted that DCG has a liability of $575 million to Genesis. In the letter, he also described a $1.1 billion promissory note, due June 2032, which he said came about as the parent company stepped in to assume liabilities from Genesis related to the collapse of digital-assets hedge fund Three Arrows Capital.
As Bloomberg notes, Winklevoss’s aggressive stance comes as Gemini and its founders faces a lawsuit from investors who accuse the company of fraud, claiming the Earn product was in effect an interest-bearing account that it failed to register as a security.
As for the public spat between Winklevoss and Silbert, which is all too reminiscent of what happened between CZ and SBF in the days before the failure of FTX, as twitter user Jeremey Padawer summarizes "When these sorts of issues become public, almost every single time the worst is still to come… good luck crypto community." Indeed.
First, some background: in early November, shortly after FTX imploded, Gemini Trust which was founded by the Winklevoss twins, paused redemptions on a lending product called Earn, which offered investors the potential to generate as much as 8% in interest on their digital coins. It did so by lending them out to Genesis Global Capital, one of the companies owned by Silbert’s Digital Currency Group. The Earn halt came after Genesis suspended both redemptions and new loan originations at its lending unit because of its exposure to FTX. Genesis has told clients that it could take “weeks” to find a path forward, and that bankruptcy may be one possibility.
Which brings us to today: this morning, facing pressure of his own from angry customers locked out of their Gemini accounts and a lawsuit alleging fraud, Cameron Winklevoss published an open letter saying he had provided Silbert with multiple proposals to resolve the issue, including as recently as Dec. 25. He told Silbert “this mess is entirely of your own making,” citing some $1.675 billion owed to Genesis by DCG, which it used for other business purposes within Silbert’s conglomerate. “This is money that Genesis owes to Earn users and other creditors.”
“It’s not lost on us that you’ve been working desperately to try and firewall DCG from the problems that you created at Genesis,” Winklevoss added, strongly hinting that the relationship between DCG and Genesis is similar to that between FTX and Alameda. And in case that wasn't clear, the next sentence strikes it home: “You should dispense with this fiction because we all know what you know — that DCG and Genesis are beyond commingled.”
Winklevoss claims the $1.675 billion borrowed by DCG from Genesis was used “to fuel greedy share buybacks, illiquid venture investments, and kamikaze Grayscale NAV trades,” referring to another of Silbert’s businesses, Grayscale Investments, whose largest vehicle is the Grayscale Bitcoin Trust. This came, he said, “all at the expense of creditors and all for your own personal gain.”
Winklevoss also asked Silbert to “publicly commit to working together to solve this problem,” which he says affects more than 340,000 Earn customers, by Jan. 8. He didn’t say what would happen if no agreement was reached by then.
Silbert prompted responded in kind, tweeting a refutation to several of Wilkevoss’s accusations, saying “DCG did not borrow $1.675 billion from Genesis” and “never missed an interest payment to Genesis and is current on all loans outstanding,” without providing more detail. Silbert also claimed DCG delivered a proposal for resolving the dispute to Genesis and Winklevoss’s advisers on Dec. 29, but had received no reply.
That would not be the last of it, and moments later, Cameron Winklevoss doubled down, urging Silbert to "stop trying to pretend that you and DCG are innocent bystanders and had nothing to do with creating this mess. It's completely disingenuous. So how does DCG owe Genesis $1.675 billion if it didn't borrow the money? Oh right, that promissory note..."
And then, in an apparent attempt to avoid the nuclear option and filing a notice of default against Genesis - an event that will likely lead to even more havoc and mayhem across the crypto community - WInklevoss tweeted "Will you, or will you not, commit to solving this by January 8th in a manner that treats the $1.1 billion promissory note as $1.1 billion?"
Previously Silbert's DCG has been trying to emphasize that it’s separate from Genesis and insulated from its troubles. After Genesis suspended redemptions, DCG said in a tweet that “this temporary action has no impact on the business operations of DCG and our other wholly owned subsidiaries.”
Silbert, in a letter to shareholders last month, said that intercompany loans were made “in the ordinary course of business.” He noted that DCG has a liability of $575 million to Genesis. In the letter, he also described a $1.1 billion promissory note, due June 2032, which he said came about as the parent company stepped in to assume liabilities from Genesis related to the collapse of digital-assets hedge fund Three Arrows Capital.
As Bloomberg notes, Winklevoss’s aggressive stance comes as Gemini and its founders faces a lawsuit from investors who accuse the company of fraud, claiming the Earn product was in effect an interest-bearing account that it failed to register as a security.
As for the public spat between Winklevoss and Silbert, which is all too reminiscent of what happened between CZ and SBF in the days before the failure of FTX, as twitter user Jeremey Padawer summarizes "When these sorts of issues become public, almost every single time the worst is still to come… good luck crypto community." Indeed.
$FET been pumping like a mfer lately - up 150% YTD. Bought some more as low as $.05x but not nearly as much as I wish I had in hindsight. Would like the opportunity to get in below $.10 again but I’m afraid I missed the boat and it’s not going that low again, even if we get a sizable pullback in equities.
Last edited:
Quite a few cryptos have been running up since just before Christmas.
Bitcoin is up 10 out of 12 days since Jan 1. GALA is up 148% since Dec 30. GARI is up 100% since Dec 24. SOL is up 72% since Dec 30. WOO is up 52% since Dec 20. Cardano is up around 33% since Dec 30. QRDO is up around 20% since Jan 9.
Coinbase is up over 40% since Dec 30.
I saw something that this might be an organized pump but the stock market new highs vs new lows have been up every day since Dec 29 so maybe this is a legit rally.
Last edited:
Made some weekend fun money off of Gala in the last week. Still holding a large bag because they are one crypto that actually has a purpose in the future of online gaming.Coin Market Cap sorted by past 7 days
Poor Peter.
His arguments regarding the future of hard money and fiat aren’t wrong, but he has failed to recognize that bitcoin is trumping gold because it has better transferability and portability.
That, and he’s bitter he didn’t take a few minutes to learn about how it works.
Famous crypto skeptic and gold bug Peter Schiff said that his “Bitcoin mystery” is solved after realizing that he mistook the pin of his Bitcoin (BTC) wallet for the password.
In a tweet on Jan. 22, Schiff explained that he knows the pin of his wallet, but after the app was updated, he was logged out and he could not access his funds anymore. He also admitted that he never wrote down his seed phrase:
Many in the crypto community have criticized Schiff for making what they perceived as a rookie mistake. When Schiff initially announced that he lost the funds, Binance CEO Changpeng Zhao said, “I can’t believe I am about to say this, but maybe “stay in fiat”?
One Twitter user stated today that Schiff “should be the last person educating/warning people about Bitcoin. [He hasn’t] taken the time to learn even the most basic things about it!”
Analyzing & Animating 973 Crypto Hack Timelines To Find Patterns
In this analysis, I will show you what insights I gained from the chronological representation of 973 crypto hacks and scams.
ren-heinrich.medium.com
I Analyzed 120 Crypto Hacks. Here Is What I Learned
For this article, I analyzed 120 crypto hacks to see how they impacted the price performance of the cryptocurrencies affected. Some of the…
medium.datadriveninvestor.com
I am using mstr as a proxy for Bitcoin. This increase is essentially what I expected. Bitcoin had been down for 54 weeks, it generally goes down 52-53. You had tax loss selling continue e downside pressure at the end of the year. The businesses had semi stabilized and then you had the January effect take place. The ribbons are flipping as we speak and people think this is a bottom. Mstr isn’t pumping like some of the miners but that’s ok. There is essentially 2 options I see for the next couple weeks. A continued pump up similar to what 2015 did before coming back down before going back up again, or forming a base here and continuing a steady climb up. It sure looks like the 4 year cycle is back on track and you still have a lot of shorts.
