3 ms·

This is exactly what Bitfinex did. Funny to see the same solutions proposed for actual banks.

• melenaboija 4y ago
  What was the equivalent to the treasuries in this comparison?
  • modeless 4y ago
    Their remaining assets after they were hacked. They gave everyone's account a 36% haircut and issued a kind of equity to "cover" the rest. I guess it ended up working for them because they're still around, but personally I wouldn't touch Bitfinex with a ten foot pole. And I think I read that SVB's losses this week exceeded their cumulative profits since inception so it seems likely that even 100% ownership of the company wouldn't be valuable enough to make their customers whole.
    • rvnx 4y ago
      It's not a good solution to give pieces of equity and/or claims on future cash distributions, but it sounds better than forcing to liquidate everything in a rush immediately. Another way could also be to apply when you are withdrawing the money: 1st yr: 10% withdraw fee 2nd yr: 9% withdraw fee 3rd yr: 8% withdraw fee etc with the rate adjusting down every year.
      • modeless 4y ago
        Or, you could liquidate everything now and give people cash today that they could choose to put into treasuries themselves, earning a rate much better than your proposed lockup fee schedule. That sounds much faster and simpler and ultimately better for everyone.