1/n - Really short thread on @SBF_FTX bailout of BlockFi - Why it was not predatory and saved our asses
2/n - Anyone following me would realise I’m (1) unemployed and hence not a FTX shill, (2) I don’t hold back on my thoughts and (3) I actually understand all these lending businesses/ponzis
3/n - Back in June, I highlighted how all these lending businesses were in dire stress - BlockFi especially took the brunt of my criticism because it was a shit business that couldn’t even make money in a bull market
4/n - they also happen to managed to get themselves into the same shit trade as 3AC on the “GBTC arb” and in fact was a loss making business
5/n - the problem with BlockFi was that a big part of their deposit base was retail deposits… BlockFi in June had a real risk of being not just insolvent but faced a bank run on their hands
6/n - Out of all the rest of the bailout proposals that they received, none wanted to be subordinate to client deposits - ie nobody really wanted to bail out BlockFi
7/n - I am very certain @BlockFiZac did not enjoy accepting a proposal that effectively zeroed his equity but he had no choice - why? Because nobody else was willing to really bail out the retail that deposited with BlockFi
8/n - without the @SBF_FTX bailout, there would have been further contagion and most importantly- the wrath of the SEC onto this space as American retail lost their deposits
9/n - we would have gone to maybe 14k or even lower … well looks like we are headed there now anyways but that’s it. There are many unscrupulous players in Crypto but @SBF_FTX is as fair as they come.

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More from @hodlKRYPTONITE

Aug 26
1/n - The real estate crisis in China and how crypto is going to be down 50% from here
2/n - You probably have not heard much of this in the western media. Ukraine and energy is taking too much attention. Also no westerners are really allowed into China unless you have a valid reason and are willing to do a quarantine
3/n - I am no expert on China. My only experience with it was working at a macs in Wudaokou whereby i worked 9-9-6.
Read 20 tweets
Aug 9
Why @Galois_Capital is right and we should stop arguing and make money

2/x - First off, this is abit late cus i got to balance multiple macs shifts r.n but DO U WANTU MAKE MONEH OR BE RIGHT
3/x - We know that the merge is coming and that there's going to be ETHpow and ETHpos. If you hold ETHoriginal ...you are going to get both....
Read 13 tweets
Jun 27
How fucked is BlockFi? An exploratory journey with me.

2/x - Thanks to Morgan Creek generously leaking details of the FTX deal with BlockFi, we can surmise and gleam a few details. But first let's work through this together on first principles.
3/x - The details of the FTX BlockFi deal is as follows - FTX provides a loan to BlockFi that is subordinate to client deposits (impt!) and FTX receives an option to buy out BlockFi at almost zero
Read 15 tweets
Jun 22
Macro Madness in the Land of Rising Sun. Say Konichiwaaa!

1/x - Why macro is down bad
2/x - Why should you care? Crypto and equities track the macro markets. Interest rates determine the cost of borrowing. Broadly speaking, you arent going to find money to buy dumb computer coins when interest rates are at 10%
3/x - Before sloth started working at macs, sloth dabbled in a bit of macro. But really, im just pretty much an idiot. On the bright side, that means i'm good at explaining to idiots.
Read 19 tweets
Jun 17
Why the lenders are in trouble and you should be worried.

2/x - First of all, if you have funds with a third party anywhere - get out while you can. Some will survive, some wont but best to wait till the dust has cleared.
3/x - Lets stick with facts first. There is an asian lender in trouble. Miners have been overlevered. Instead of buying protection, a few have been overly bullish and instead did a real texas hedge.
Read 23 tweets
Jun 15
Why Celsius and 3AC going under should cause you to worry

2/x - First of all, why should you listen to a cartoon animal working in mcd?

I called the celsius collapse

As well as 3AC (in private - for those who i talk to)

This is not dancing on graves. I just dont want retail to get further liquidated.
3/x - First of all, 3AC collapse is monumental. This is because they borrow from EVERY SINGLE MAJOR lender. Think BlockFi, Genesis, Nexo, Celsius.

Expect every lender to take on hits from 3AC
Read 20 tweets

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