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Crypto or not, when a large, heavily leveraged hedge fund implodes, it's really complex to unwind. It was the same when Bill Hwang's Archegos Capital failed las
by thesausageking 4y ago
Crypto or not, when a large, heavily leveraged hedge fund implodes, it's really complex to unwind. It was the same when Bill Hwang's Archegos Capital failed last year:
https://en.wikipedia.org/wiki/Archegos_Capital_Management https://en.wikipedia.org/wiki/Archegos_Capital_Management
The day they got wiped out, the liquidations caused a 27% drop in share price of ViacomCBS. The various lawsuits and charges of fraud and racketeering will take years to work their way through to completion.
- phabricator 4y agoAre there other crypto funds that are structured to handle a failure better? I know it's crypto but it's shocking to see people invest in a suitcase stuffed with dollar bills.
- rich_sasha 4y ago"custodianship", as it is known, does begin to exist in crypto world. The custodian / administrator / prime broker (all related terms) hold the actual keys, and you have something like a limited key that permits some pre-agreed operations. So for example you can only wire funds to pre-approved addresses.
- randomran01234 4y agoDeFi is holding up just fine.