Okay. Look -- I get it: there is a whole generation of newly-minted MBAs whose entire careers revolve around this amazingly rickety house of cards. But in truth, compared to trad-fi breadth and depth. . . it remains just a little snow-globe world on some small house's fireplace mantle -- and the rest of us are out here in the big blue and well-regulated and understood risk assessment world.
So some sophistry is to be expected from CoinDesk, and similar editors' desks. But trying to "sell" the Terraform Labs, Celsius, Core Scientific and yes, FTX bankruptcies (among dozens of others) as a simple NYSE 20-minute halt trading. . . is sheer lunacy. Here's the bit from CoinDesk's Mr. Casey:
. . .With the dust settling following the messy collapse of some key crypto players in 2022, I’m reminded of that idea. Recently the estates of FTX, Celsius, Genesis, Voyager and others have been making varying degrees of progress in their efforts to return value to creditors, showing how bankruptcy can be a useful circuit breaker.
Much like those automated trading-halt triggers that many stock exchanges employ when selling gets out of hand, the freeze in payment demands and margin calls breaks the cycle of panic that sets off bank runs and self-perpetuating market collapses. Bankruptcy buys all of us time to let the market shift from fear to greed, so a price recovery can start to mitigate the losses. . . .
So -- perhaps. . . he should acknowledge that this is a slow motion, and very tiny, version of the great melt-down of 2008. The lack of overall confidence has cost many many ordinary moms and pops their life savings. They will never recover. . . because in sum. . . "there is no there, there" -- in these crypto "markets".
Bankruptcies won't help (despite the outlier case, of FTX -- where excellent and experienced debtor in possession work will likely get north of 95 cents recovery on the dollar for creditors and customers -- but not not not equity holders).
Now you know. . . onward, smiling.
नमस्ते
No comments:
Post a Comment