Dec

1

Questions that lead to excuses

December 1, 2022 |

DealBook to ask SBF "tough questions". perhaps 1 million investors and their counselors who have lost (10 billion?) will be not as forbearing? i would ask verification of his interview that he gave as much to both sides of the aisle. apparently according to interview with Asian reporter he gave money to other side darkly so that he wouldn't be ridiculed by agrarian sources. either way it's deception like the angler fish. i'd also ask him to expatiate on his statement that he doesn't read books.

Mr. Gitarts or Mr. Aiken who knows infinitely more about the crypto than I: "what questions would you ask SBF at end of deal book conference?" to the observer he seems to be the Houdini and the spider of deception.

a third person who knows as much about crypto as anyone answers my query, "why aren't you in jail you piece of — ?"

Barry Gitarts writes:

Yes, SBF was an outright fraud, but there are other things brewing in the space that have been banned a long time ago in traditional markets but have emerged again in crypto.

Remember the bucket shop? Well it's back as a crypto protocol. It pools investors money and will offer a trader a slippage free trade, the trader gets to choose when they enter and exit, however the pool charges 10BPS on the way in and on the way out, they charge double digit interest rates on the position even unlevered and offer up to 150x leverage which of course leads to liquidations.

So how has it done? Since inception in 2021, traders have lost $40m to this pool, and that is not counting interest, trading and liquidation fees. The pool currently holds $375m in assets, one year ago it had $100M in assets.

One would think traders would leave the venue after consistently losing, but trading volume recently hit a new high of $1B notional traded in a day.

Big Al adds:

The question I would ask is, "Who got those billions that SBF lost?" Mr. Gitarts comments may be a trailhead.

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