The main proposition of crypto (aside from speculation because "graph goes up") is that you don't need a centralized exchange.<p>Then all these centralized exchanges popped up to make it easier.<p>Whenever I see these types of announcement I have two reactions:<p>a) I cheer, because the sooner the pyramid collapses the less the damage.<p>b) I'm sad because these are real people losing real jobs
How it started:<p><a href="https://www.coindesk.com/business/2022/07/08/crypto-exchange-blockchaincom-faces-250m-hit-on-loans-to-three-arrows-capital/" rel="nofollow">https://www.coindesk.com/business/2022/07/08/crypto-exchange...</a><p>“We are not getting the sense there is any kind of stress on the organization,” the person said.<p>How it is going, this article.
> The exchange recently revealed it was dealing with a $270 million shortfall from lending to beleaguered hedge fund Three Arrows Capital.<p>oh okay so they could have just not done that and they would be immune to the market conditions<p>> The reduction brings the firm’s staffing back to January 2022 levels<p>what
One interesting way to look at it is that the Crypto market is experiencing a 2008-like crisis (unregulated/less regulated shadow banks going bust), but without any bailouts.<p>Wonder if they'll learn the same lessons and come up with a Crypto federal reserve (likely called Unbanked DAO of Courage represented by Mark Wahlberg or some shit). Would be ironic.
An exchange is kind of like thermodynamics.<p>No matter how complex and viable a perpetual motion machine looks, you can't get more energy out than goes in.<p>Similarly - no complex restructuring of money into different assets will make more money come out than goes in.<p>Money only grows in a non zero-sum way when it's put to work in the real world: e.g. creating value by creating a product which is more valuable than the sum of its parts.
The number of "crypto developers" I have gotten applications from is easily 3:1 when compared to people with more regular "full stack" experience.<p>Its way more than these large layoffs, even the smaller players have made big cuts.
Anyone else curious to see what terms Three Arrows Capital was offering?<p>For seemingly everyone in crypto to have such significant exposure to them, it looks like the entire industry was funneling retail funds into 3AC.<p>Maybe some of these clear ponzi schemes offering 20% yield were themselves promised 20.5% yield by 3AC.<p>It's an interesting take. Because it kind of lets everyone off the hook.<p>Wild speculation here BUT...<p>If I'm a token and I offer investors 20% but loan to 3AC at 20.5% and they seem credible, I can semi-credibly blame their unexpected default.<p>For their role as a hedge-fund 3AC can buy tokens with money loaned from those same tokens, pay dividends as they rise and simply fold as they fall.
Prob a lot of these companies are just cutting the bottom bucket. Don't companies like banks usually do this during a little downturn, using the "economic conditions" as an excuse even though they know it's just 6-12 months max.
a week ago the market was worth cca 800B. today the market is worth over 1T. for some perspective just how huge this is, ukraine's foreign debt is at 20B, or 10% of the weekly growth of the crypto market. some crash lol