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4 days ago there was an interesting discussion here about a possible Alameda/FTX bankruptcy: https://news.ycombinator.com/item?id=33464494 https://news.ycombina

by janmo 4y ago

4 days ago there was an interesting discussion here about a possible Alameda/FTX bankruptcy: https://news.ycombinator.com/item?id=33464494 https://news.ycombinator.com/item?id=33464494

ta988 4y ago
And I love how you have self-professed specialists that tell you "no this will never happen". Finance is full of over-confident people that don't know enough or have too much at stake.
- xadhominemx 4y ago
  I wouldn’t consider the crypto universe to be “finance” The vast majority of finance people have been in the Matt Levine school of thought the entire time - the entire industry is a ponzi and every crypto person who thinks the way traditional finance does things is stupid will end up slowly replicating all the traditional finance structures and norms because it turns out they exist for a reason
  - paulgb 4y ago
    I used to work in (trad) finance and while I want to agree with you, there's also a lot of trend following and going to where money is moving, with a belief that if it does go to shit you'll see the writing on the wall first before your winnings turn into losses.
    - xadhominemx 4y ago
      Yes, that is true about every industry
  - skippyboxedhero 4y ago
    The vast majority of finance people don't give a shit about the value of the product. Their business isn't to take risk or speculate, that is what your money is for. Their job is to give the people what they want, and earn hard-money commission. That is it. I will say though: I think crypto is here to say, I think normal finance is here to say, they aren't incompatible. What I think was illogical was to suggest that blockchain was a substitute for very efficiently run operations (like custody)...but it could be used elsewhere (for example, having investment funds do transfers on a blockchain is interesting) because it is also true that other parts of the industry are pre-historic (anything retail-facing is usually expensive and poorly-run, the whole retail fund value chain is a joke).
    - xadhominemx 4y ago
      Was this a reply to my comment?
- paganel 4y ago
  Most probably some of those people had skin in the game, hence the comments of “everything is five here! Move along!”.
rideontime 4y ago
Tellingly, SBF's response to that was to assure us that FTX was doing fine.

by janmo 4y ago

4 days ago there was an interesting discussion here about a possible Alameda/FTX bankruptcy: https://news.ycombinator.com/item?id=33464494 https://news.ycombinator.com/item?id=33464494

ta988 4y ago

And I love how you have self-professed specialists that tell you "no this will never happen". Finance is full of over-confident people that don't know enough or have too much at stake.

xadhominemx 4y ago
I wouldn’t consider the crypto universe to be “finance” The vast majority of finance people have been in the Matt Levine school of thought the entire time - the entire industry is a ponzi and every crypto person who thinks the way traditional finance does things is stupid will end up slowly replicating all the traditional finance structures and norms because it turns out they exist for a reason
- paulgb 4y ago
  I used to work in (trad) finance and while I want to agree with you, there's also a lot of trend following and going to where money is moving, with a belief that if it does go to shit you'll see the writing on the wall first before your winnings turn into losses.
  - xadhominemx 4y ago
    Yes, that is true about every industry
- skippyboxedhero 4y ago
  The vast majority of finance people don't give a shit about the value of the product. Their business isn't to take risk or speculate, that is what your money is for. Their job is to give the people what they want, and earn hard-money commission. That is it. I will say though: I think crypto is here to say, I think normal finance is here to say, they aren't incompatible. What I think was illogical was to suggest that blockchain was a substitute for very efficiently run operations (like custody)...but it could be used elsewhere (for example, having investment funds do transfers on a blockchain is interesting) because it is also true that other parts of the industry are pre-historic (anything retail-facing is usually expensive and poorly-run, the whole retail fund value chain is a joke).
  - xadhominemx 4y ago
    Was this a reply to my comment?
paganel 4y ago
Most probably some of those people had skin in the game, hence the comments of “everything is five here! Move along!”.

rideontime 4y ago

Tellingly, SBF's response to that was to assure us that FTX was doing fine.