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$8000 of SHIB coin is worth $5.7b (in 400 days)
- tomhunters 5y agoIt's definitely quite hard to transfer this chunk of SHIB in an exchange. Imagine the eyes watching this address; it will be quite an overwhelming feeling.
- kvakvs 5y agoIt is not worth $5.7B, don't multiply huge amounts of shares, stocks, or coins by their market value, as it is impossible to cash out at that price. If he tries to do large sell orders it will sink to 1-10% of its current price.
- bsanr2 5y agoI fully expect the price to crash gloriously once the pullback starts, to fractions of a percent, but 1% of the current is still impressive. 8 grand to $5 million? That's, uh, not too bad.
- onion2k 5y agoImagine risking $8k and cashing out with just $5.7m to $57m a year later. Who would even bother?
- ectopod 5y ago$57m to $570m
- onion2k 5y agoMaybe it'd be worth it after all! With my dismal math skills I won't be making any profitable trades though.
- LurkingPenguin 5y agoImagine risking $8,000, watching it go to $5.7 billion a year later, not cashing out and going down as the biggest diamond hands in history. At the very least you could create a commemorative diamond hands NFT collection and walk away with a few million.
- gaws 5y ago> going down as the biggest diamond hands in history. go back to reddit
- adventured 5y agoThere have been much larger diamond hands scenarios. A Japan dotcom bubble billionaire, Yasumitsu Shigeta, went from $42 billion at the peak in 2000, down to $600m by 2009 as his shares of Hikari Tsushin (mobile phone distributor) sank. Still extraordinarily rich, however that's a remarkable $41 billion decline. He went from being worth $1b to $25b in one year in 1999. Masayoshi Son rode Softbank down by something around $75b after the dotcom bubble. Softbank lost 98% of its stock market value. There were obviously a lot of billionaire wipeouts during the US dotcom bubble as well, as people held and sank, although none quite as dramatic as those two declines.
- bhaak 5y agoLOL. Usually "diamond hands" isn't used for the kind of holders that lose everything. But I really like those examples. Decreases the survivorship bias you have when this term is usually referred to.
- short_sells_poo 5y agoIt's funny then that every time another <insert hip tech startup here> gets VC inflow they value the entire company based on the 5% of shares that the VC bought, and this valuation gets parroted on every media outlet, including YC. It just tells you that the nature of the beast does not change. We make fun of crypto but the same kind of shilling goes on in the supposedly more sophisticated investor circles as well.
- revolvingocelot 5y agoFor whatever it's worth, that type of shenanigan is endemic everywhere else in the tech world, too. ISPs advertising speeds "up to"? SSD vendors quietly swapping SLC for limited QLC? Hat-on-a-hat super-processors in otherwise-shonky SOCs that immediately throttle themselves into uselessness but look great on paper? Prebuilt "gaming" computers with a big-name processor and a mobo pulled out of a cereal box? It's not a "bait-and-switch", per se, it's just an information asymmetry -- that speed will be achievable on speedtest.com alone, that transfer speed looks great just as long as you haven't put more than 128gb (or whatever it is) onto the drive, if you cover the SOC in copper heatsinks (sold seperately) you can get some performance back, and the motherboard can be replaced but that rig'll play LoL just fine. If you know these things, then the game is navigable; the statements about speed or capacity or value are "true", there's "just" important and missing information about what happens once t>0 or the feeding frenzy starts or capacity is exceeded or whatever.
- carnitine 5y agoThis is just the way things are valued. Obviously you need to account for varying liquidity or whatever, but if you can sell 5% of Y for X, then Y is naturally worth 20X. Internal systems at banks report value to analysts, traders etc. in the same way, this isn’t some trick to hoodwink people, it’s just a convenient and sensible way of valuing things.
- short_sells_poo 5y agoI disagree. It's a silly, misleading and inconvenient way to value things. Just because you can sell 5% of Y for X, it absolutely doesn't mean that Y is worth 20X. Doubly so when Y is in extremely limited supply. One could raise an objection: but hey, stocks are valued at X on the exchange, so what gives? And yes, they are, but anyone with a shred of sense knows that if you actually tried to buy or sell a significant portion of the company in question, the price you are going to get will be very-very different from what is being quoted, thus the actual true value of the company is likely to be considerably different. Most actual professionals laugh at this kind of valuation, which is what makes the whole affair funny since a large portion of the industry is nevertheless happily using it. I suppose one doesn't have to go too far for the reason: it benefits a large portion of the industry to value things this way, because they are implicitly inflating the value of their own investments. Honestly, if I were to interview a quant and they claimed with a straight face that this is a sensible thing to do, I'd immediately thank them for their time and bid them farewell. It's that ridiculous. Finally, I don't consider internal systems at banks to be some sort of benchmark for valuation. Most systems at banks are utter garbage. There are a few exceptions (option/exotics desks), but the rest is basically ran out of excel sheets.
- mbesto 5y agoNot to mention, at its current volume, SHIB is only trading $5M/day. Even if you could continually trade at that volume, it would take you ~3 years to liquidate.
- mhmmmmmm 5y agoWhere is that $5M a day figure from? Coinmarketcap lists it at 39B€ in the past 24 hours. https://coinmarketcap.com/de/currencies/shiba-inu/ https://coinmarketcap.com/de/currencies/shiba-inu/
- ArtTimeInvestor 5y ago"is worth" is up for interpretation. Tesla sold something like $100M to test the liquidity of Bitcoin. Nobody tested to sell $5B of a cryptocurrency, let a lone a meme coin. Next month, $8B of Bitcoin that have been locked in Mt. Gox are expected to be released to their owners. That could become the biggest liquidity test in the history of crypto.
- tomlue 5y agoI believe you, but do you have a good source for the date and amount? I keep getting trash when I look.
- ArtTimeInvestor 5y agoI read it while surfing around on the same trashy internet that you use :) So don't believe me. It might be totally wrong.
- mr2loco 5y agothis will be dumped into the market. Lets see if buyers can absorb it
- paulgb 5y ago100% agree, but it's worth noting that that meme coin did more trading volume yesterday than Bitcoin. I don't read too much into that in terms of how much a large trade would move the market, but it's something.
- lngnmn2 5y ago> more trading volume yesterday than Bitcoin Well, this is a textbook FOMOing. And a textbook scamcoin. They shilled it hard before a FOMO chain reaction began. Good job. Good profits.
- tata71 5y agoThe winds are shifting towards technicals. Not to sound repetitive, but hilariously, being long DOGE doesn't look crazy.
- lngnmn2 5y agoSo, sell it.
- personjerry 5y agoStep 1. Make friends with someone high up at Coinbase Step 2. Create a coin, buy a lot of it for yourself Step 3. Get friend to list your coin on Coinbase Step 4. ??? Step 5. Profit
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- newacc9 5y agoHex is also crazy, has according to RH 41k users and claims to have a market cap of 1/9th of BTC. People are going to get annihilated.
- jstx1 5y agohttps://coinmarketcap.com/currencies/shiba-inu/ https://coinmarketcap.com/currencies/shiba-inu/ Just wow.
- 908087 5y agoIf you take Twitter/Reddit's word for it, this is what "innovation" looks like now.
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- neom 5y agoI'm a super crypto n00b - I don't really understand altcoins. BTC makes some sense to me, it's basically the gold standard of crypto currencies (I think?) and ETH makes some sense because of the smart contract stuff built in (I think?) - should I think about all the alt coins like being nation state currencies? Do they have specific unique properties per coin that is relevant to their use-case? What's the theory behind them?
- cunidev 5y agoBehind this, none. Memes, and speculation, and memes, and Elon Musk.
- neom 5y agoSo for this shiba thing, dude holding 8k worth, I guess his theory was something like "Internet people love Shibas, they're funny and kawaii, bet people will buy it as joke! Bet I'll make bank!" - and they did?
- cunidev 5y agoMore or less so. Welcome to crypto wonderland
- neom 5y agoSo what's to prevent me from making pepecoin, or going on twitch and making alt coins for funny memes of famous streamers and pumping them in their communities? That would be "the right thing to do" in this so called wonderland? Fascinating to me really...
- kflzufkrbzi 5y agoNothing. Theres plently of them already, its just that nobody cares about 99.9% of them.
- tata71 5y ago
- cunidev 5y agoThis does not make it less of a speculative bubble. Yet another tulip breed, in a growing tulip market. Similarly, the upvote chart for this entry may look like it was shared on some place hours after being posted, and upvoted in bulk: https://upvotetracker.com/post/hn/29024311 https://upvotetracker.com/post/hn/29024311 [edit: removed "insinuating" bit, against HN guidelines]
- Kiro 5y agoWhat are you insinuating? I couldn't care less about Shiba Inu but someone buying something for $8000 which in 400 days is worth $5.7b is a crazy story worth upvoting. It doesn't need any vote brigading. Also: > Please don't post insinuations about astroturfing, shilling, brigading, foreign agents and the like. It degrades discussion and is usually mistaken. If you're worried about abuse, email hn@ycombinator.com and we'll look at the data. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- codetrotter 5y agoI don’t think that’s necessarily the way to interpret that graph. Look at 2:12:08 PM. It still has only 5 upvotes but gets placed onto position 26 of the best list. Sometimes posts that had few votes get put on the best list and given a second chance. Looks to me like that’s how this story started getting more votes, allowing it to gain traction. See also this post by HN moderator “dang” about the second chance system and the comments he wrote there as well about it: https://news.ycombinator.com/item?id=26998308 https://news.ycombinator.com/item?id=26998308
- cunidev 5y agoI did not know of this system (which makes a lot of sense), although "crypto X pumped" does not seem any similar to the criteria: > Moderators and a small number of reviewers go through old submissions looking for articles that are in the spirit of the site—gratifying intellectual curiosity—and which seem like they might interest the community. Anyway, don't want to put the tin-foil hat. I removed the incriminating bit.
- Aeolun 5y agoCrypto makes no sense to me…
- astoor 5y agoA couple of thoughts: - This would only be the "greatest trade ever" if they actually cash out, i.e. realise the paper profits. The other two examples of "greatest trades ever" did realise their profits. There are of course questions as to whether they could in this case. - Assuming they could cash out and make $5bn, and if they did, who would the losers be? In the case of the George Soros trade, he made his billion at the expense of the British tax payers, who collectively had to pay an extra £3.3 billion taxes, and mortgage payers, who saw their interest rates shoot up to 15%. In this case, presumably it would be all the people who bought SHIB for a higher price than that at which it settles after cashing out, plus everyone else on the planet who suffers from the social, political and environmental fallout from cryptocurrencies. That $5bn would have to come from somewhere.
- dools 5y agoThe choice to tax people anything extra as a result of the Soros operation was a matter of policy, rather than necessity.
- rsj_hn 5y agoThe money does need to come from somewhere, ultimately higher prices for imports, and if the government needs to buy imports, then yeah, taxes go up or spending on other things is cut.
- adventured 5y ago> Assuming they could cash out and make $5bn, and if they did, who would the losers be? Your losers scenario requires that SHIB declines materially after the buyers pick up the $5b of the crypto (such that the buyers inevitably end up losing money). You've built that assumption in and it's incorrect to automatically assume that, it's a central flaw in your premise. There are not losers in every economic transaction in fact. The buyers may end up losing money.
- IncRnd 5y agoBy definition these sorts of trades are a zero-sum game.
- throwaway4good 5y agoGuys, it is time to give in. Let's make a HN coin! Who is in?
- tata71 5y agoThere have existed rapid, low-fee coins intended for usecases like tipping on forums (or quickly buying burritos) for a number of years now. We're simply waiting on low-information speculators to figure things out at their pace and eventually declare the rightful heirs to the BTC "king of crypyocurrencies" throne, so even places like HN might feel comfortable integrating natively, instead of looking foolish later for adopting a "dumb method that takes an absurd amount of time/fees/etc" (BTC).
- throwaway4good 5y agoNo. Don’t be silly. Let’s just create a new token on the ethereum network and use the power of the hn community to drive up the price.
- sevenf0ur 5y agoTime to hit them up with that proposed wealth tax. There should be no billionaires! \s
- rchaud 5y agoPaper value =/ real value Otherwise WeWork would be a $50bn behemoth as its backers continued to insist right up until the comical S-1 dropped.
- mettamage 5y agoHere's a YouTube video from a derivatives trader on the whole thing. It's a fairly entertaining watch IMO :) https://www.youtube.com/watch?v=6PY8qvapOfs https://www.youtube.com/watch?v=6PY8qvapOfs
- tmaly 5y agoI just can help but think of tulip mania when I see this. At some point the music stops