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Caitlin Long @CaitlinLong_
, 13 tweets, 10 min read Read on Twitter
1/ Great morning for a tweetstorm updating the latest on the interaction of #WallSt & #bitcoin, drinking coffee from my new BitMug (thanks AC Fenton!) @brucefenton
2/ The most significant news--maybe most important news to date on the #WallSt front--was @tzeroblockchain's token generation event on 10/12 (a fully-compliant #STO on the public #Ethereum mainnet of true preferred stock, issued by an SEC registrant). Investor letter captures...
3/ ...perfectly the true benefit of owning #cryptoassets (which defenders of the legacy system love to ignore): investors have the option to opt out of the legacy system, which is unstable & unfair. Owners can either hold tokens at a broker/dealer OR IN A PERSONAL WALLET at...
4/ ...their CHOICE. This CHOICE will keep #WallSt honest since every owner can always withdraw coins to their own wallet & directly own the property if they so choose. Along these lines, I can't wait to review details about @Fidelity @DigitalAssets. A long-only #buyside firm...
5/ ...starting a #crypto platform is likely to build one that is a lot safer for Mom&Pop investors than one built by a taxpayer-backed or Fed-backed firm, plus @DigitalAssets has been mining for yrs so understands honeypot risk better than most #WallSt firms (which haven't...
6/ ...faced the need to manage bearer assets in yrs, much less digital bearer assets--it's not a core skill set of #WallSt firms. Plus, how many core devs has #WallSt been able to hire???). But we got more news recently that #WallSt wants to create fractional-reserve #bitcoin...
7/ ...check out @trueEX filing here:…. Physically-settled #bitcoin futures (a) at <100% collateral, (b) w/ collateral substitution (ie, not 100% backed by real on-chain bitcoin--see 1207(c)) + no contractual commitment on forks (it has "sole discretion")...
8/ ...see 1211. Keyword search "fork" and "collateral" and draw your own conclusions. This goes much farther than @Bakkt, which says its customers must post 100% real #bitcoin upfront. None of the new platforms has committed that it won't engage in coin lending, which is yet...
9/ ...another way #WallSt creates more claims to assets than there are assets. Speaking of @Bakkt, yesterday it said it won't commingle customer #bitcoin--I don't see how that's possible, since I doubt it's letting customers store coins in personal wallets, so it must be using...
10/ ...a different definition of "commingling." When I speak of commingling, I mean storing customer assets in omnibus accounts rather than individually and directly allocating them to customers. I very much look forward to reviewing legal agreements at all levels (futures, ...
11/ ...clearinghouse & warehouse), and the same for all new #WallSt #crypto platforms announced recently, including @Bakkt, @trueEX, @ErisX_Digital & Citi's depositary receipts product. The devil will be in the details of the legal agreements! Fiduciaries, beware there is no...
12/ ..lender of last resort for #bitcoin, so a run-on-the-bank or #hardfork could cause major losses if your #WallSt counterparty turns out not to be 100% backed by on-chain #bitcoin. I expect losses from operational probs at some point. Do your homework about risks, fiduciaries!
13/ ...and when the losses hit someday, no fiduciary will be able to claim they weren’t warned! Plaintiffs attorneys will have a field day. Meanwhile #HODLers who hold their #bitcoin private keys will enjoy the short squeeze. Have a great day everyone! END
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