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The original dotcom implosion was caused by all these "new Internet" companies selling advertising to each other and recognizing that as revenue, even though it
by xrd 4y ago
The original dotcom implosion was caused by all these "new Internet" companies selling advertising to each other and recognizing that as revenue, even though it was just a swap of ad space that no else wanted. When people figured that out, we had the crash of 2000.
SBF maybe isn't the best quant, but he clearly knows his history.
- ghaff 4y agoAnd it went beyond the internet companies in no small part because those companies were loading up on hardware and software from all the big tech companies. (Oracle, EMC, Sun, Cisco were explicitly called out as the four horsemen of the internet but the effects were felt much more broadly.)
- gregw2 4y agoAlternate/additional explanation… the dotcom crash happened after the first quarter of 2000 when the quarterly financials of the big internet hardware/server vendors (Sun but also EMC, Cisco, Oracle, etc) came out and sales were way down because nobody had quite anticipated that their clients would take the servers used for y2k testing and repurpose them, rather than buying new stuff. Then the voice of skeptics had credence to raise other concerns (ad swap, etc) which snowballed.