Australian (ASX) Stock Market Forum

Bitcoin price discussion and analysis

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bluekelah said:
It's very easy to keep gold coins and bars. A 10oz gold bar the size of a car remote is easily 26kaud now. :) and a 1oz gold coin/Bar size of memory stick, worth 2.6k can easily be kept and hidden. That's what I do for insurance ;) don't need electricity or internet either to use it.


I believe many folks have lost their trust in crypto exchanges and will likely move their assets to cold wallets. However this means the float available for crypto trading will nosedive and cause the market to become quite illiquid. This will exacerbate price falls. Especially if liquidators have large amounts of btc to liquidate. When the digital asset in the wallets go down in value, more and more folks will eventually turn to gold and other PMs.
Click to expand...
I hope so as i am a strong believer in PM.i hope crypto bull reading this will at least moved their coins onto their own wallets.it is one thing to see BTC fall, quite another to see the whole wallet diseappear
 
qldfrog said:
I hope so as i am a strong believer in PM.i hope crypto bull reading this will at least moved their coins onto their own wallets.it is one thing to see BTC fall, quite another to see the whole wallet diseappear
Click to expand...
Not sure if posted before but probably too late for those aussies with FTX accounts ~30k estimated accounts.
The fallout will probably be felt globally. Bitcoin prices seem to be propped up at 16.7k region though past few days, one would think such a big event would cause a much bigger crash in the market...

www.afr.com

At least 30,000 Australians trying to claw back FTX losses

FTX Australia administrators are working to secure the assets of 30,000 Australian investors exposed to the dramatic collapse of global crypto trading platform FTX last week.
www.afr.com www.afr.com
 
Good morning

The Australian Securities and Investments Commission suspends the Australian financial services license of FTX Australia after it entered voluntary administration last week.

FTX Australia’s licence permitted it to deal in, make a market for and provide general advice relating to derivatives and foreign exchange contracts to retail and wholesale clients. It can keep giving limited financial services that relate to the termination of existing derivatives with clients until 19 December 2022. the regulator says.

Kind regards
rcw1
 
Axios has a number of articles on the collapse of FTX. This one is probably the most critical.

The week the crypto dream died​

Felix Salmon

1668374140006.jpg
Illustration: Gabriella Turrisi/Axios

Never in business history has there been a more abrupt heel turn than the one we saw from Sam Bankman-Fried — or SBF, as he's universally known — over the past week.
Why it matters: The crypto world has seen large financial losses before, and will see them again; it's notoriously rife with ponzis, frauds and rug-pulls. If the collapse of SBF's crypto exchange, FTX, caused nothing but financial losses, that would be bad but not unprecedented.
  • FTX is much more systemically important to the crypto ecosystem, however, than its size alone would suggest.
The big picture: The story of SBF and FTX is a story of how all financial systems — even one built on a bedrock of mistrust — end up creating trusted centralized counterparties.
  • It now looks likely that SBF — arguably the most trusted man in crypto — will turn out to have been a crook who was embezzling his own customers' funds.
  • If that's the case, then lawmakers will have every reason to ignore industry pleas for special regulatory treatment. It might be many years, if ever, before crypto entrepreneurs have any hope they'll be treated as though they're responsible and law-abiding.
The bottom line: SBF's stated dream — and that of most other crypto entrepreneurs — was for the industry to improve upon and supplant the world's existing financial infrastructure.
  • That dream is now dead.
State of play: There's still a lot we don't know about what happened at FTX and at SBF's hedge fund, Alameda Research. But the big picture seems to be that Alameda was not nearly as consistently profitable as it had suggested.
  • Alameda did substantially all of its trading on FTX. If it consistently lost money on those trades, then everybody else on the exchange, in aggregate, would have considered themselves to be making money.
? Felix's thought bubble: Since traders flock to where the profit opportunities are best, that could drive a huge amount of volume to FTX (read more on this theory). Those volumes, in turn, underpinned the mathematics that ended up with the exchange being valued at $32 billion by Silicon Valley venture capitalists.
  • When that happened, the valuation of FTX — not to mention the market value of its associated exchange token, FTT — was rising much more quickly than any hole in Alameda's balance sheet.
The catch: The hole in Alameda's balance sheet still needed to be filled somehow, and it reportedly ended up being filled with client funds from FTX. So when those clients started asking for their money back, they discovered it wasn't there.
  • And an exchange that won't give clients their money back is worthless.

    www.axios.com

    The week the crypto dream died

    FTX, SBF and the week the crypto dream died
    www.axios.com www.axios.com

 
Good morning
Has been reported today (17/11/22):

High-profile US sports stars and personalities have been named in a lawsuit over deceptive practices targeting investors who became victims of the stunning collapse of cryptocurrency exchange FTX. The celebrities helped promote the exchange, which declared bankruptcy in the US last week in a meltdown that has reverberated across the digital currency landscape and drawn scrutiny from authorities in multiple countries.

US Treasury secretary Janet Yellen was the latest official to call for more oversight of the crypto industry.
American football star Tom Brady and his supermodel ex-wife Gisele Bundchen, retired basketball great Shaquille O’Neal, tennis Grand Slam champion Naomi Osaka, actor/comedian Larry David, and Shark Tank investor Kevin O’Leary were among those named alongside FTX founder Sam Bankman-Fried in the suit filed in Miami federal court overnight.

Investor Edwin Garrison, of Oklahoma, filed the suit in a Miami court on behalf of other investors, seeking to recover damages from losses suffered in the FTX implosion, accusing the company of “misrepresentations and omissions.”
“FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country,” the lawsuit alleges.

Will no doubt open a ' can of worms'.

Kind regards
rcw1
 
Good morning,

The chief executive tasked with restructuring FTX says the crypto exchange exhibited a ‘complete failure of corporate controls', The Wall Street Journal reports.

Former Enron chief John Ray, who has helped oversee some of the biggest bankruptcies ever, including Enron’s, said in a filing to the US federal bankruptcy court that he’s never seen anything as bad in 40 years of restructuring firms.

He wrote that the company can’t trust prior financial information produced by founder and former chief executive Sam Bankman-Fried.

"Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” he said in the filing.

"From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

– The Wall Street Journal
 
mullokintyre said:
El Salvador President Nayib Bukele said the country would buy one Bitcoin per day from tomorrow.
At least he is averaging down.
Click to expand...
Known as the Martingale Strategy...

"It is considered a risky method of investing. It is based on the theory of increasing the amount allocated for investments, even if its value is falling, in expectation of a future increase. When the Martingale Strategy is used in betting, the gambler must double the bet when faced with a loss."

Question is where is the money (USD) coming from? USD reserves, borrowed, volcano bonds?

1668721600968.png
 
Scathing critique of the latest tweets by SBF, incredible how the head of a multi-billion dollar crypto casino can be so naïve...

 
  • Bitcoin -5.2% to $US15,692 at 7am AEDT
  • Shares in listed US crypto exchange Coinbase hit a record low of $US40.61 overnight as bitcoin and other cryptocurrencies sunk again. The stock finished down 8.9 per cent at $US41.23 despite renewed buying from Cathie Wood’s Ark Invest.
  • The world’s largest bitcoin fund, the US based Grayscale Investment Trust, is trading at an approximate 45 per cent discount to its net asset value after it refused to conduct a proof of reserves audit. The Grayscale Bitcoin Trust is now down 81.4 per cent over the past year. The trust owns more than 600,000 bitcoin on behalf of investors.
  • Australian founded bitcoin miner Iris Energy plunged 18 per cent to a record low of $1.52. It’s now down 95 per cent since listing at $US28 per share last November
 

Bankruptcy Filings Reveal Gross Mismanagement At FTX​

​
lustration_Frank%20Downing_Final_Circle%20400%20px.png
By Frank Downing | @downingARK
Director of Research, Next Generation Internet​
Initial filings reveal damning evidence that now-bankrupt crypto exchange FTX misappropriated both investor and customer funds. John Ray, FTX’s bankruptcy expert who oversaw the Enron case, described the “unprecedented” situation. Revelations include the absence of trustworthy financial information, use of corporate funds to purchase personal property, and large personal loans including $1 billion to CEO Sam Bankman-Fried (SBF) and $543 million to Director of Engineering Nishad Singh.

In the wake of SBF’s bizarre and somewhat self-aggrandizing tweets, FTX’s new management released a statement that the former CEO was no longer acting on behalf of the company. More damning, a series of SBF’s Twitter DM’s with a Vox reporter exposed his true character: prior political donations and advocacy in Washington were “just PR”; regulators “don’t protect customers at all”; his biggest mistake was filing for bankruptcy, and “everything would be ~70% fixed” if he hadn’t. SBF also seemed to suggest that winning by any means is better than being clean and losing.

In response to the FTX bankruptcy, contagion spread, forcing institutional lender Genesis to pause customer withdrawals and curtail its retail crypto lending product. We expect other counterparties to surface as more details surrounding FTX and Alameda’s dealings emerge.
That said, our conviction in decentralized and transparent public blockchains is as strong as ever. In this case and others, decentralization and transparency are paramount as antidotes to the gross mismanagement associated with centralized intermediaries, not to mention fraudulent centralized intermediaries.​


FOUR SILOS FOR RECOVERY PURPOSES
 
JohnDe said:
That said, our conviction in decentralized and transparent public blockchains is as strong as ever. In this case and others, decentralization and transparency are paramount as antidotes to the gross mismanagement associated with centralized intermediaries, not to mention fraudulent centralized intermediaries.
Click to expand...

This would have to be one of the funniest things I have read when taken in the context of what has apparently occurred with FTX.

I've never placed money in crypto as I just do not understand what it is for. Many have attempted to explain it to me but it goes right over my head.
 

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