Why are they confessing? They are not confessing, they are bragging.

murray t turtle · Apr 29, 2022

Pekelo said:
By the way why would you think price alone validates anything you say? There are Beanie babies on Ebay going for 15K or more, does that mean they are good long term investments or in any way unique?

And on days when price falls, you are wrong?

Looks like overnight you were wrong because BTC is back at 38.8K...
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%%
Tough question;
but when a picture of plastic coin or con goes down for a year, not much of an investment or coin, or con.
Capital markets can get strange , the movie\ The Sting[1973]grossed > $159 million.Open advertised as a con, my banker da actually paid for US to see that con movie /LOL Dont know the net maybe OK/LOL.
We never called that con an investment nor paid twice TO SEE THAT CON/MOVIE

GlobalMacro90 · Apr 29, 2022

Pekelo said:
Crypto CEO when trying to explain high yield crypto investing accidentally describes ponzis:

The text version of his explanation is here:

old.reddit.com/r/wallstreetbetsOGs/comments/uctnvc/sam_bankman_fried_and_the_crapto_fraud/

"You start with a company that builds a box and in practice this box, they probably dress it up to look like a life-changing, you know, world-altering protocol that's gonna replace all the big banks in 38 days or whatever. Maybe for now actually ignore what it does or pretend it does literally nothing. It's just a box. So what this protocol is, it's called ‘Protocol X,’ it's a box, and you take a token. You can take (crapto coin), you can put it in the box and you take it out of the box. Alright so, you put it into the box and you get like, you know, an IOU for having put it in the box and then you can redeem that IOU back out for the token.

And then this protocol issues a token, we'll call it whatever, ‘X token.’ And X token promises that anything cool that happens because of this box is going to ultimately be usable by, you know, governance vote of holders of the X tokens. They can vote on what to do with any proceeds or other cool things that happen from this box. And of course, so far, we haven't exactly given a compelling reason for why there ever would be any proceeds from this box, but I don't know, you know, maybe there will be, so that's sort of where you start.

Maybe two thirds will, two thirds will offer X tokens, and they're going to give them away for free to whoever uses the box. So anyone who goes, takes some money, puts in the box, each day they're gonna airdrop, you know, 1% of the X token pro rata amongst everyone who's put money in the box. That's for now, what X token does, it gets given away to the box people. And now what happens? Well, X token has some market cap, right? It's probably not zero.

So, you know, X tokens [are] being given out each day, all these like sophisticated firms are like, huh, that's interesting. Like if the total amount of money in the box is a hundred million dollars, then it's going to yield $16 million this year in X tokens being given out for it. That's a 16% return. That's pretty good. We'll put a little bit more in, right? And maybe that happens until there are $200 million dollars in the box. So, you know, sophisticated traders and/or people on Crapto Twitter, or other sort of similar parties, go and put $200 million in the box collectively and they start getting these X tokens for it.

And now all of a sudden everyone's like, wow, people just decide to put $200 million in the box. This is a pretty cool box, right? Like this is a valuable box as demonstrated by all the money that people have apparently decided should be in the box. And who are we to say that they're wrong about that? Like, you know, this is, I mean boxes can be great. Look, I love boxes as much as the next guy. And so what happens now? All of a sudden people are kind of recalibrating like, well, $20 million, that's it? Like that market cap for this box? And it's been like 48 hours and it already is $200 million, including from like sophisticated players in it. They're like, come on, that's too low. And they look at these ratios, TVL, total value locked in the box, you know, as a ratio to market cap of the box’s token.

And they’re like ‘10X’ that's insane. 1X is the norm.’ And so then, you know, X token price goes way up. And now it's $130 million market cap token because of, you know, the bullishness of people's usage of the box. And now all of a sudden of course, the smart money's like, oh, wow, this thing's now yielding like 60% a year in X tokens. Of course I'll take my 60% yield, right? So they go and pour another $300 million in the box and you get a psych and then it goes to infinity. And then everyone makes money."
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Tough to know who to give the benefit of the doubt to here.

One guy is Sam Bankman-Fried, worth a cool 24 billion at the young age of 30. The other guy is dressed as some prohibition-era bartender with conspiracy board behind him.

You can do better than this.

Pekelo · Apr 29, 2022

GlobalMacro90 said:
worth a cool 24 billion
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Seriously, price is not everything. Elizabeth Holmes was worth 9 B, when she was on the cover of Forbes, and now she is waiting for sentencing. Was she right? Madoff... you know the drill.

You are basically saying that Pablo Escobar was right, because he was worth 30 B dollars. Can you see the stupidity of your argument?

But I am nice, so you can try again, you can do better than this.

"He almost never drinks or goes on vacation."

I guess my life is happier, specially when I am drinking on vacation. By the way he is running an exchange (selling shovels to miners), that is where most of his wealth is from. Smart guy if he diversifies.

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Why are they confessing? They are not confessing, they are bragging.

murray t turtle

GlobalMacro90

Pekelo