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This is entirely glorious

So, if you can trade on an exchange before everyone else, at preferential prices, be able to front run, pick off and so on, you should make an absolute bloody fortune:

Sam Bankman-Fried had secret VIP access to trading systems that gave him a speed advantage over rivals, the US regulator has said.

Alameda Research, a trading company founded by Mr Bankman-Fried, was allowed early access to trades and could borrow almost unlimited amounts against customer deposits, according to a legal filing from the US Commodity Futures Trading Commission

That he still went bust shows what a shite trader he was.

7 thoughts on “This is entirely glorious”

  1. what a shite trader he was
    Yes. That’s the “Tinkerbell” effect for you. When you have an unshakable belief that the medium term Bitcoin price can only go up, all hell breaks loose if anyone says “I don’t believe in Bitcoin”.

  2. what a shite trader he was
    I’m not sure it’s a market to be a good trader in either. It’s totally illusory. There’s nothing there as a basis to trade on. It’s really just going to be down to random chance.

  3. Think about it. All markets are about the confidence of the future utility of what’s being traded. But because crypto has so little utility in commerce, you’re actually trading on the confidence in confidence, in confidence, in confidence… The whole thing is being held up by its own bootlaces.

  4. “The whole thing is being held up by its own bootlaces.” – and those bootlaces are fraying…

    Crypto has an industry-wide triple problem:

    1 – inherent uselessness; these are almost all just speculative assets (and probably those claiming to be asset-back aren’t, see point 3)
    2 – poor management; almost all crypto businesses are badly run and few have the structures and processes required for financial services businesses. Many of them fail at the tech level too and get hacked
    3 – fraud – the more I read about it, the more I am convinced that many of these businesses are fraudulent. And of course the nature of crypto means many of the investors in it are dodgy

    The whole thing is getting closer to falling apart.

  5. The quotation lacks info.

    “had secret VIP access to trading systems”: who gave him that access?

    “Alameda Research, a trading company founded by Mr Bankman-Fried, … could borrow almost unlimited amounts” From whom?

  6. Bitcoin is useful
    If you want to trade stuff that is illegal, drugs, guns, sexy services.
    Or if you want to buy a car from another town but those Asset Seizure rules make it potentially difficult to travel with real cash.
    The mistake is not that crypto is bad, it’s exceedingly good that it exists to keep bad peeps out of our business and to pressure the Feds to liberalising the economy, it was just investing at the wrong time. Imv of course.

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