Posted on 03/13/2023 11:06:35 AM PDT by Red Badger
Crypto hedge fund executive Marco Lim spent Monday racing to open bank accounts in Hong Kong after the sudden collapse of three US lenders.
The hedge fund, MaiCapital, is based in the city and had cash at one of the fallen institutions, Signature Bank. MaiCapital needs alternatives and managing partner Lim was pressing lenders to speed up account opening.
“The two biggest crypto friendly banks are gone,” Lim said, referring to Signature and Silvergate Capital Corp., which also had many crypto clients and said Wednesday it would liquidate. “I’ve been through too many crises.”
Silvergate, Signature and Silicon Valley Bank were toppled in the past few days amid bank runs, spurring the US to introduce a new backstop to shield deposits. The loss of Silvergate and Signature is particularly grievous for digital assets as the two operated real-time, seven-days-a-week payments networks for the crypto industry, aiding the flow of money to and from the sector.
Many crypto firms are now combing for banks outside the US, with lenders in Switzerland and the United Arab Emirates among those in the spotlight. This tilt away from America had already begun due to growing regulatory heat there after the implosion of Sam Bankman-Fried’s FTX digital-asset exchange.
“The US isn’t as accommodative as it was toward crypto,” said Richard Galvin, co-founder at fund manager Digital Asset Capital Management in Sydney. “It makes sense to diversify across jurisdictional grounds.”
(Excerpt) Read more at finance.yahoo.com ...
Silvergate was really clever—they closed voluntarily before the regulators got there...so they didn’t get included in the “official” bank failure stats.
“The algorithm is there for everyone to view and understand.”
Yup—nuclear physics is there for everyone to view and understand...
Bwahahahahahaha.
99% of crypto investors are speculators driven by greed and wouldn’t know “the algorithm” if it ran them over....
I wanted to share with my “algorithm” for determining the value of crypto:
Crooks + Con artists = Zero.
That’s where you’re wrong. Something like PirateChain or zcash that is fungible has value to those crooks therefore you can make money on it.
The problem with a lot of digital currencies (like a new digital dollar) is that it is not fungible like the US dollar is. But zcash and PirateChain are fungible. There is value in being able to send money anywhere in minutes and quickly convert to another currency.
You can make money on anything.
But this “algorithm” stuff is the punch line to a joke—happy talk for fools.
And a currency that the feds can just make up out of thin air is even less secure.
If this is true, then that’s an interesting angle. Crypto is a threat, so institutions supporting crypto are being targeted. Worth keeping an eye on.
The feds can support their fake currency at the point of a gun.
All the crypto folks have is a pile of fancy big words.
Oh they will use their guns there isn’t anything you can do to stop it.
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