Posted on 06/19/2022 11:52:22 AM PDT by Presbyterian Reporter
Cryptocurrency-focused hedge fund Three Arrows Capital Ltd. has hired legal and financial advisers to help work out a solution for its investors and lenders, after suffering heavy losses from a broad market selloff in digital assets, the firm’s founders said on Friday.
“We have always been believers in crypto and we still are,” Kyle Davies, Three Arrows’s co-founder, said in an interview. “We are committed to working things out and finding an equitable solution for all our constituents.”
The nearly decade-old hedge fund, which was started by former schoolmates and Wall Street currency traders Su Zhu and Mr. Davies, had roughly $3 billion in assets under management in April this year.
That was shortly before a sudden collapse in the values of TerraUSD, a so-called algorithmic stablecoin, and its sister token, Luna, in mid-May.
Three Arrows is exploring options including asset sales and a rescue by another firm, Mr. Davies said. The fund is hoping to reach an agreement with creditors that would give it more time to work out a plan. The firm is still operating as it seeks a solution.
(Excerpt) Read more at wsj.com ...
"""Crypto’s total market capitalization, which had topped out at nearly $3 trillion in November last year, had tumbled to $910 billion as of Friday, according to data provider CoinMarketCap."""
Just think about this. In November 2021 the various owners of cryptocurrency had $3 trillion in their wallets and had dreams of buying all sorts of stuff with that money.
Today, basically those same people only have dreams of spending $910 billion on stuff.
When $2 trillion goes up in smoke it has a negative effect on the economy.
When the Feds did their $2 trillion giveaways because of covid, it had a positive effect on the economy and asset prices.
When the Feds did their $2 trillion giveaways because of covid, it had a the positive effect of on the economy and asset prices, triggering hyperinflation.
I agree it triggered hyperinflation, but the $2 trillion giveaways also pushed the stock market, bond market, and housing markets to all times highs.
And the people who held inflated stocks, bonds, and houses all had dreams of what they were going to spend that money on.
Today, those asset owners have lowered their dreams.
(Three Arrows)
⬇️⬇️⬇️
📉📉📉
Building Back Better?
The former $3T market cap, now 0.9T, was global, not domestic. So the impact to the US will be less than you might at first think.
Any investment that requires a belief system is not a smart investment.
And I thought 'Hedge Funds' were supposed to make money when the price goes down.
“a bitcoin-denominated reserve”
i think i see the problem: CryptoTulips with zero use-value used as a “reserve” to back other CryptoTulips that also have no use-value ...
“when TerraUSD and Luna both became worthless in a matter of days.”
ACTUALLY, they were ALWAYS worthless, it just took a while for the greater fools to realize that ...
I agree the $2 trillion crypto drop is world wide.
At this point in the world-—from the beginning of 2022
Crypto prices are down about 65%
Stock prices are down about 25%
Bond prices are down about 15%
Housing prices are still at their highest prices.
Commodity prices are probably up 20%-—and the commodities are what people need to buy to survive.
“He said Three Arrows is still trying to quantify its losses and value its illiquid assets”
yeah, it’s pretty difficult to “value” ILLIQUID “assets” .... could be that the “value” is ZERO, given that they’re illiquid and all ...
Musk Slammed With $258 Billion Lawsuit Over Crypto Posts
The plaintiff said he and his class lost about $86bn (£69.9bn) since 2019 after Musk, Tesla, and SpaceX began supporting Dogecoin. He is seeking that amount plus $172bn (£140.2bn) in damages and wants Dogecoin investing to be legally declared gambling.
The complaint alleged that Musk knew his tweets about the token directly affected its price, market cap, and trading volume. It listed the multiple times the billionaire personally and through his companies had promoted Dogecoin, and the subsequent impacts on its price.
The plaintiff claimed that every social media statement and endorsement on Dogecoin by the defendants “knowingly caused millions of people to spend billions of dollars buying into the Dogecoin Crypto Pyramid Scheme.” He alleged that the defendants knew the crypto had “no value” and “falsely and deceptively claimed that Dogecoin is a legitimate investment.”
thanks. I had not heard about that. I guess the only people who make money when the market collapses are the lawyers who sue everybody and hope to win a couple of the lawsuits.
Plaintiff Keith Johnson, seeking to represent a class of people, claimed that the cryptocurrency was a “fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”
I do more due diligence whem investing $1000 than these imbeciles apparently did when investing over $86 BILLION.
“when the market collapses”
In most markets, it’s easy to trade long or short. But many of these crypto traders are just amateurs that just go long, keep buying the dips, and on the way down, jyst keep doubling down on their losses.
You forgot your < /sar > tag.
First of all, given the American taxpayer sooner (hyperinflation) or later (insolvent debt) foots the bill for the Fed printing press, there is no positive effect. Let me give you an example.
Let's say Kalifornia is successful in their reparations quest to give one-drop-of-Amish a one-time $300,000.
“That was shortly before a sudden collapse in the values of TerraUSD, a so-called algorithmic stablecoin, and its sister token, Luna, in mid-May. “
These stable coins are supposed to be constantly be maintaining the peg to the dollar. Just like let’s say a metals ETF. Traders/investors pump $10 million in, the ETF buys $10 of gold. ETF share holders sell $10 million, they sell $10 million of gold. I’d bet that these stablecoin guys were cheating.
Most of those ETF’s will have a HUGE DISCLAIMER, that when there is extreme market volatility, they may not be able to maintain the peg to the underlying.
They deserved to lose their money.
Ignorance and stupidity are not excuses.
Well, in order for an administration to “Build Back Better”, they first need to burn everything existing to the ground. Seems like they’re on-plan, at this point.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.