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(Kotaku)   You mean playing League of Legends while on investor calls for millions of dollars isn't a sign of pure business genius?   (kotaku.com) divider line
    More: Obvious, Venture capital, Names of large numbers, Long and short scales, The Cunninghams, FTX CEO Sam Bankman-Fried, Bankman-Fried's trading firm, crypto kingpin, FTX's main rival  
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1811 clicks; posted to Fandom » and Business » on 10 Nov 2022 at 5:17 PM (11 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



27 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-11-10 4:35:30 PM  
Fark user imageView Full Size
 
2022-11-10 5:40:40 PM  
Is it the dip yet?
Is now when I buy?
 
2022-11-10 5:43:15 PM  
They gave hundreds of millions to the human embodiment of Poochie.
 
2022-11-10 5:45:51 PM  
You don't get it, subby. He's so good at business he doesn't need to pay full attention to an investment call
 
2022-11-10 5:53:26 PM  
league of legends player touching grass
Youtube C0ZNZUr2HvI
 
2022-11-10 6:05:10 PM  
So crypto ended up being a pyramid scheme.  Who'da thought?
 
2022-11-10 6:08:37 PM  
Investors thought he was a cool eccentric Steve Jobs type. Instead he ended up being just Steve Jobless.
 
2022-11-10 6:26:24 PM  
I should start a new company because apparently any new company is automatically worth billions
 
2022-11-10 6:39:23 PM  
If your shiat is not backed with anything worth more than a shiat, it is worth *less* that a shiat. And cryptocurrency is worth less that a shiat, as it is not backed with anything worth more than a shiat.
 
2022-11-10 6:39:49 PM  

OhioUGrad: I should start a new company because apparently any new company is automatically worth billions


It's the new pump and dump.... You start a company with a bunch of private investors, get some PR company your buddy owns to get your name out as the hot new thing. These companies are worth what the investors that started them say they're worth. Then they sell out and move on leaving everyone else holding the bag. It's nothing new. It's just had a facelift.... Like a rundown McDonald's.
 
2022-11-10 6:46:20 PM  

FleshMonkey: Is it the dip yet?
Is now when I buy?


Buy when it hits 0. Guaranteed to at least get your money back, and it can only go up, right?


...right?
 
2022-11-10 6:51:24 PM  
Probably a yuumi main
 
2022-11-10 7:30:00 PM  

SirMadness: [iFrame https://www.youtube.com/embed/C0ZNZUr2HvI?autoplay=1&widget_referrer=https%3A%2F%2Fwww.fark.com&start=0&enablejsapi=1&origin=https%3A%2F%2Fwww.fark.com&widgetid=1]


I haven't played in years and that still hits too close to home
 
2022-11-10 7:46:15 PM  
I half expected the article to be about Musk.
 
2022-11-10 7:53:11 PM  

germ78: I half expected the article to be about Musk.


Yeah, except you can't imagine Muskrat doing anything considered typically amusing, even something toxic like League of Legends
 
2022-11-10 8:06:21 PM  

pacified: Probably a yuumi main


definitely, yuumi mains are lazy trash.
 
2022-11-11 12:29:58 AM  

dyhchong: FleshMonkey: Is it the dip yet?
Is now when I buy?

Buy when it hits 0. Guaranteed to at least get your money back, and it can only go up, right?


...right?


At this point I wondering if Crypto can go negatively. I mean they've innovated every other part of the scam, I have to imagine they can find a way to make it crash so low you have  to pay someone to take it off your hands.
 
2022-11-11 3:10:24 AM  

Summoner101: So crypto ended up being a pyramid scheme.  Who'da thought?


Not really, at this point.

Since about five years ago literally everyone involved has known anything involving crypto is a scam to the same extent that every outside observer it's explained to has immediately known it's a scam.

The scam in question now, however, isn't a ponzi scheme or a pyramid scheme, it's a Kansas City Shuffle.

If you're unfamiliar, a KCS is when the con man convinces the mark that the scam is one kind of scam, and gets the mark to willingly engage with it because they know how to beat it, but it's actually a different, usually much simpler scam, and then when the con man walks off with the money the mark is left in the position of not only losing the money, but not really being able to effectively seek redress because they were intending to "win" and did the work of covering the con man's tracks themselves.

In this case, crypto scams are presented as an obvious ponzi scheme, which if accurate would mean the mark would only need to buy in early and then get out before someone is left holding the bag... and what it actually is is just the person minting the shiat literally transferring the money out and straight-up stealing it, because, like, why wouldn't you when your victims literally just did all the laundering for you?

// Unsurprisingly given that the marks are crypto bros, this is a con that only works on people even stupider than the normal marks of a con, the mark has to literally be so stupid they think they're good at something that even a cursory examination immediately reveals they're cripplingly incompetent at, in this case finance.
 
2022-11-11 4:14:53 AM  
Oh, FFS... His name is literally Bankman-Fried.  BANK MAN FRIED!

Nobody even read that far, did they?

/Dewey, Cheetham & Howe
 
2022-11-11 7:01:07 AM  
I wonder what their next big scam will be?
 
2022-11-11 7:11:05 AM  

NathanAllen: I wonder what their next big scam will be?


Oh, I already have that info. If you just set up a monthly payment, I'll let you into the inner secrets that the [insert opposite of voting preference] don't want YOU to KNOW!!!!

/couldn't help myself, sorry. ;P
 
2022-11-11 7:22:12 AM  
"We are in the business of taking risk," reads part of a letter updating partners. "At the time of our investment in FTX, we ran a rigorous diligence process."

No, no you most definitely did not. You fell for a caricature of a "tech guy" stereotype straight out of a bad movie.
 
2022-11-11 8:39:49 AM  

Bslim: "We are in the business of taking risk," reads part of a letter updating partners. "At the time of our investment in FTX, we ran a rigorous diligence process."

No, no you most definitely did not. You fell for a caricature of a "tech guy" stereotype straight out of a bad movie.


FTFA:
"I don't know how I know, I just do," Adam Fisher, the author of the above excerpt, wrote in his glowing September profile. "[Sam Bankman-Fried] is a winner."

He's playing games while non-chalantly discussing billion dollar business deals? What a fricking cool guy! I want in on what he's selling because he wants me to buy a banana in Roman Drachmas boosting the local economy with a single app!

also FTFA:
"It's cringe-y in retrospect."

Nooooo! It only cost Saramucci billions. Not cringy at all.
 
2022-11-11 1:29:04 PM  

Summoner101: So crypto ended up being a pyramid scheme.  Who'da thought?


Pretty much everyone.  Including crypto "investors".  The ones that lost money are the ones that mistimed their exit.  And a bunch of rubes that actually thought there was real value here.

It will be interesting if everyone else starts rethinking their exit timing.  You'll know them because they'll be shouting HODL the loudest so they can get out before the crash.
 
2022-11-11 1:30:54 PM  

keldaria: dyhchong: FleshMonkey: Is it the dip yet?
Is now when I buy?

Buy when it hits 0. Guaranteed to at least get your money back, and it can only go up, right?


...right?

At this point I wondering if Crypto can go negatively. I mean they've innovated every other part of the scam, I have to imagine they can find a way to make it crash so low you have  to pay someone to take it off your hands.


No, but you used to be able to borrow real money using it as collateral.  The collateral value has gone to zero but the real dollars you owe have not.
 
2022-11-11 8:23:49 PM  
So, um, where did the money go? If people paid $16 billion, someone somewhere must have that $16 billion. Or was it all theoretical money that never existed to begin with?
 
2022-11-12 2:51:30 AM  

nytmare: So, um, where did the money go? If people paid $16 billion, someone somewhere must have that $16 billion. Or was it all theoretical money that never existed to begin with?


It's more on the side of theoretical money that never existed.  A rough example for this case would be you make a million coins, but only release 10,000 to the public.  Each coin then trades for 10 dollars.  Sure, you can value the remaining stockpile at 9,900,000.  If properly managed, you might over a long period of time sell that stockpile at or near that price.  But if everyone suddenly stops thinking that 10 dollar valuation is correct, you're sitting on a pile of junk.

A major problem they had was a lack of diversification of assets combined with being leveraged.  Their account was built effectively on the value of a single coin (yes, they had some small holding in other coins).  You can choose one or the other in this case.  If you're going to run a single asset, don't leverage yourself too much because any drop it value is going to hit some collateral which causes you to liquidate some assets which then floods the market forcing more debts to become uncollateralized.  It creates a cycle that rapidly drops the value of the underlying asset.

Alternatively, if you're going to leverage yourself, you need to diversify your assets.  That way when one asset drops in value, debts that are collateralized with the falling asset can be re-collateralized with good assets until the value of the first asset recovers its value.   Sure, you'll have a bit of a liquidity crunch, but you don't enter the vicious cycle where falling prices for you to sell assets which then causes further price drops.
 
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