15 Comments

I don’t understand why these intermediaries are having problems. We’re they themselves overexposed to the assets they were trading? How big was their on-hand reserve of Bitcoins compared to their daily sales and purchases? You don’t typically see, for example, Wall Street firms getting confused between the assets they have on hand as market-makers and the assets they hold for their own investment.

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Jun 14, 2022·edited Jun 14, 2022

Gonna go out on a limb here and predict crypto exchange partnerships with LIV golf and like, I don't know...the Donbas?

In all seriousness, great write-up. I have friends that are in the crypto red and STILL can't be convinced that this is all a terrible, insane idea. On the plus side, we'll probably get the long-awaited Margin Call sequel that ends with Michael Saylor getting into his DIY time machine that's powered by screams and sending himself to the year 2847 where he can travel the universe and proselytize to the alien masses about quantum leverage.

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Just wanted to say that that last paragraph really hit home. Thanks for the excellent writing and for articulating things in a relatable way.

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It seems like the generation that came of age 2008ish thinks that financial crimes are good ways to make money with zero consequences. Can’t imagine why.

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Every one of the celebrities involved in promoting this crypto shit needs to be put in jail.

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I am bewildered at Coinbase’s headcount. What are all these people doing?

And I agree with the other commenter - what does the price of any cryptocurrency have to do with the health of a wallet company. I guess they were counting on a certain number of transactions / trades per day or something? Is their fee like a percentage of the dollar value of the trade? I don’t get it.

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