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I'm just taking the numbers from the article itself and the assumption that FTT specifically is worthless (extreme enough on it's own). If you assume a fire-sa
by LatteLazy 4y ago
I'm just taking the numbers from the article itself and the assumption that FTT specifically is worthless (extreme enough on it's own).
If you assume a fire-sale on everything, then everyone is insolvent all the time...
- rippercushions 4y agoA fire-sale of (say) a skyscraper in Manhattan is a very different proposition to a fire-sale of random shitcoins.
- LatteLazy 4y agoThat really depends. Most buildings are financed with mortgages, so if there is a real estate crash then they can actually have negative values, even after only a small price drop. Even FTT coins can only be worth zero. This is one of the unexpected dangers of "safe" assets: people will lend on safe assets, so fund managers leverage up until they're not safe anymore and you get 2008 type issues. Ultimately all of this is pretty standard for Hedge/Investment funds. If you want safe, diversified, limited downside investments, get an few index funds. The minute you go to a hedge fund you're asking for risk whether the underlying is questionable crypto or US Treasuries...
- adamsmith143 4y agoGiven today's news I just want to say lol. FTT down 58% and the real fire sale hasn't even begun. Alameda is doomed and will fall next.