Cryptocurrency (and related fuckery)

I guess her kids can at least be grateful that she left them out of it? Not the kind of family picture I’d want widely shared.

(Not that it’s anything to be ashamed of. Most of us have been there.)

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Not the kind of “pegged” that they thought.

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On one hand, I kinda want to feel sorry for these people. On the other hand, I think they’ve demonstrated they would have been taken in by any number of other scams and schemes, and eventually lost their savings to those.

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If you can get someone’s attention by promising a “guaranteed” 20% APY return… you’ve just found yourself a mark.

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Nice explainer:

Opinion

Matt Levine

Terra Flops

Also creditor fights and Musk Twitter

By

Matt Levine

+Follow

May 11, 2022, 1:44 PM EDT

Oops

An “algorithmic stablecoin” sounds complicated, and there are a lot of people with incentives to pretend that it is complicated, but it is not. Here is how an algorithmic stablecoin works 1 :

https://www.bloomberg.com/opinion/articles/2022-05-11/terra-flops

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Matt Levine’s been great on this stuff

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[…]

The culprit for the crypto bloodbath was a chain reaction that started over the weekend when Terra’s stablecoin, TerraUSD, which is theoretically supposed to stay at $1, became “depegged” and started trading below a dollar. That sent shockwaves through the crypto community, since stablecoins are supposedly backed by real assets and aren’t just Monopoly money. At least that was the promise, despite investigative reporters finding it’s all a game of smoke and mirrors.

Tether, the most popular stablecoin in the world, also depegged for the first time early Thursday, dipping to $0.95 on major exchanges before recovering slightly to $0.98 as of this writing. But even at $0.98, the utility of a stablecoin is completely obliterated because it’s not worth precisely $1, causing speculators to rush in and try to make money by buying Tethers at a cheaper price on the assumption they can be sold for $1 later. And that’s exactly the kind of volatility that you already have with cryptocurrencies and doesn’t help people looking for a safe haven asset that can more easily be used to convert to fiat.

[…]

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Is this like when in 2008 (?) money market accounts became illiquid?

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Wonder Years Reaction GIF

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proven innocent innocentonfox GIF by Fox TV

dog day afternoon sigh GIF

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Hell NO! Eventually that’ll lead to attempts to stabilize or prop-up TulipCoin with real saving, like the banks betting people’s pensions at the race track in 2008. When that goes south, we’ll be bailing out those poor rich people again.

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SoftBank should be dead on a stab, with forensic auditors conducting the autopsy. Eventually it’s going to be in the same chapter as Enron.

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Eh. That’s just individual stages of grief after the bubble popped.

Soon some Qnut-grade “leader” will convince them that their magic money was stolen, and that they have to rally to get it back from “Them”.

ETA: If I was that guy, I’d move. Now.

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