Naked shorts was gonna be my guess.
It's better to pay the yield than to have moon the price to cover.
We seriously need a nyknyc day.
Why did those stop?
Oh, yeah, rich people entered the market and outnumber the freedom lovers.
Naked shorts was gonna be my guess.
It's better to pay the yield than to have moon the price to cover.
We seriously need a nyknyc day.
Why did those stop?
Oh, yeah, rich people entered the market and outnumber the freedom lovers.
You don't need collateral if you're naked shorting.
That's why it's naked.
Or maybe you're implying that they are naked shorting and they are trying to correct the issue... which I would also take issue with considering that the demand to short Hive (when it pumps) is way higher than the demand to long it for reasons already stated (the ability to sell locked stake by proxy).
You need hive if your short has to deliver.
I'm guessing it's cheaper to pay the yield, cover the short this time, and roll the delivery over to next time.
Which digs a hole that will eventually collapse the exchange.
That is how crapitalism works, profit now, worry about consequences later.
Keep kicking the can.
Did you debunk the math of chapter 9?
Bro Binance got fined $4.3B by the SEC and didn't even flinch.
Hive has a $100M market cap that can be controlled by $1M.
I don't even know where to begin with this statement.
Right, how quick does the price go up if you need to deliver 100k hive that you don't have?
We'd have to know the internal volumes on the exchange to know where the price would go IF a large run on the bank was to occur.
There can't be that many people using binance, there's less than 500m hive with half of it locked up in multimonth delivery times.
Better to pay the yield than to get caught with their pants down.
You're the CEO of a multi-billion dollar corporation.
You've got a good thing going here.
But hey you know what might be a good idea?
Shorting low-liquidity assets that have been known to go x1000 for like no reason.
Putting the entire company at risk in exchange for a few pennies in return.
You need to explain why Binance would naked short assets they don't have.
During the parabolic bull market period of a 4-year cycle that literally everyone is aware of.
That's not their business model.
They aren't a hedge fund shorting GME or AMC (stocks that should arguably die via fundamentals).
The risk vs reward simply doesn't add up as far as I'm concerned.
Something else is going on here.
I'd like to know how they keep it all balanced, too.
How much of what comes in will never leave?
What happens when one coin goes up against other coins and people withdraw more than what has been put in?
How do you get more of xx when folks trade btc for it and you don't have enough to cover withdrawals?
It must be a nightmare keeping all that balanced.
And, again, a nyknyc day would expose all that.
I'll be soooo glad when vsc comes online to expose the fraud in cex's.
No fraud there, all deposits are fully backed by matching assets put up to insure the withdrawal.
(Which I also don't fully understand.)
I hope a response is coming to the debunking of the chapter 9 question.
How does an ever increasing amount of profits resolve once the crowd has nothing left to pay them?
It's all mathematically sound when you just let users trade with each other.
A person can't sell a token they don't own.
Every token sold on the exchange was deposited into the exchange's wallet.
At this point Binance has been so utterly captured by American regulators that it's actually irrational to assume they can get away with all the crazy shit they were pulling back in the day. Maybe they're doing new crazy shit by making deals with the politicians that captured them. Who knows.