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They didn't plan for a black swam. I think that they only kept so much money around to do redemptions (fractional reserve) assuming that there wouldn't be a ru
by bhouston 4y ago
They didn't plan for a black swam. I think that they only kept so much money around to do redemptions (fractional reserve) assuming that there wouldn't be a run on the bank. But then when a run on the bank happened, they were screwed as they had been locking up the funds.
- krsrhe 4y ago
- dropnerd 4y agostartups usually dont have enough resources for a black swan. but this collapse was entirely predictable- many analysts pointed it out and were mocked by kwon and the self-described LUNAtics. founders either didn't do enough diligence, or didn't care.
- kgwgk 4y agoAlso startup’s black swan effects are usually of the form “our service is no more” rather than “your savings are no more”.