4 ms·

Using the word "Liquid" in the context of these accounts is... I don't know? Fraudulent? I understand that in the context of real finances things might be illiq

Using the word "Liquid" in the context of these accounts is... I don't know? Fraudulent? I understand that in the context of real finances things might be illiquid - it might take time to sell your house, or if you're a particularly big holder of stock in a company you founded you might have liquidity problems divesting over time. But it's really just taking the piss describing a lot of this stuff as "illiquid". FTT is a coin that they have made up themselves, which they themselves own the vast majority of, and which only had value in connection to the exchange that they just bankrupted. So no, it isn't "illiquid" its "worthless". It's not just that they'll take a hair cut if they liquidate it quickly, they could never liquidate even a significant portion of this. This whole thing started when CZ tried to liquidate 500m in FTT and the whole of FTX collapsed, they're now claiming their remaining FTT tokens are worth $600m (down from $6Bn). It's just so absurd to suggest you can mark to market like that.

recuter 4y ago
When the people who print the real currency are your friends, the people who are supposed to regulate who can print currency are your friends, and the people who lend you massive amounts of real currency are your friends - it is easy to delude yourself into believing that on a long enough time scale some of the plebs will buy your funny money and you will become more liquid and everything will sort of work out somehow. Money creates more money, so if can can create money that creates more money, we're broadening the economy, expanding it all the time.. (https://www.youtube.com/watch?v=M_3T-Af57Pg https://www.youtube.com/watch?v=M_3T-Af57Pg) Sort of similar to how Trump said his own net worth fluctuates day to day sometimes based on his feelings since it is tied to perceptions of the Trump name as a brand. Or how George Costanza said it's not a lie if you believe it. Or how a gambler who is down is sure he can make it back. In other words, yeah, as fraudulent as can be. Lets see if anybody actually goes to jail.
migueloller 4y ago
Matt Levine’s writing on this is right along this line. It delineates between liquidity and solvency problems. Worth a read. https://www.bloomberg.com/opinion/articles/2022-11-10/ftx-is-still-looking-for-money#xj4y7vzkg https://www.bloomberg.com/opinion/articles/2022-11-10/ftx-is...

recuter 4y ago

When the people who print the real currency are your friends, the people who are supposed to regulate who can print currency are your friends, and the people who lend you massive amounts of real currency are your friends - it is easy to delude yourself into believing that on a long enough time scale some of the plebs will buy your funny money and you will become more liquid and everything will sort of work out somehow. Money creates more money, so if can can create money that creates more money, we're broadening the economy, expanding it all the time.. (https://www.youtube.com/watch?v=M_3T-Af57Pg https://www.youtube.com/watch?v=M_3T-Af57Pg) Sort of similar to how Trump said his own net worth fluctuates day to day sometimes based on his feelings since it is tied to perceptions of the Trump name as a brand. Or how George Costanza said it's not a lie if you believe it. Or how a gambler who is down is sure he can make it back. In other words, yeah, as fraudulent as can be. Lets see if anybody actually goes to jail.

migueloller 4y ago

Matt Levine’s writing on this is right along this line. It delineates between liquidity and solvency problems. Worth a read. https://www.bloomberg.com/opinion/articles/2022-11-10/ftx-is-still-looking-for-money#xj4y7vzkg https://www.bloomberg.com/opinion/articles/2022-11-10/ftx-is...