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2022-07-02 - Fall-out from Three Arrows Capital as BlockFi sells and Voyager faces bankruptcy
Crypto-lender notes/blockfi are a creditor of collapsed crypto hedge fund Three Arrows Capital. After taking $350m at a $3bn valuation in March 2021 it looks like they may less at between 1-10% on the dollar with an option to be acquired for up to $240m by FTX
https://decrypt.co/104286/blockfi-ftx-credit-deal-acquisition-terms
https://decrypt.co/104200/blockfi-ceo-denies-ftx-cquire-crypto-lender-25m
Meanwhile Voyager Digital who are owed $650m by Three Arrows Capital has halted all withdrawals and is likely going bankrupt.
https://decrypt.co/104294/voyager-digital-halts-withdrawals-three-arrows-capital-default
May 17: Famous investor Bill Ackman weighs in on Terra/Luna collapse:
https://twitter.com/BillAckman/status/1526398201003130880
When I read about the ‘algorithm’ of @terra_money it sounds just like a crypto version of a pyramid scheme. Investors were promised 20% returns backed by a token whose value is driven only by demand from new investors in the token. There is no fundamental underlying business.
Though it seems he is in danger of the classic fallacy of "yes there's some bad, but there must be some good":
The digitization of the Luna scheme and the hype about crypto enabled it to achieve enormous scale quickly. Blockchain is a brilliant technology with enormous potential. Schemes like Luna threaten the entire crypto ecosystem. The crypto industry should self-regulate away other crypto projects with no underlying business models before crippling regulation shuts down the good and the bad. Hyping tokens that are not supported by businesses that create value will destroy the entire crypto industry. Why and/or where am I wrong?
Should be asking what is the "fundamental underlying business" for most other crypto-assets.`
2022-05-21: ECB President criticises crypto as "worth nothing and based on nothing"
https://twitter.com/JohnReedStark/status/1528052514758836224
ECB President Christine Lagarde: "Crypto-currencies are worth nothing and based on nothing,” and should be regulated to steer people away from speculating on them. Finally, a leader courageous enough to call crypto what it is - a huge, global Ponzi scheme.