But say they etc. And thankyou Sal Bayat not only for your writing but for thoughtfully enriching us with your presence in the comments section. law in order to steal money for the shareholders, and when the Unfortunately, Levine has drunk from the poison chalice of accepted crypto industry narratives and in so doing has fallen victim to useful delusions. Though there is hope, as I have begun to write these last sentences, the story of FTXs spectacular meltdown has begun breaching the waters of social media and the tide of institutional momentum may finally be turning. Many journalists, politicians, and investors will soon be forced to confront reality by asking uncomfortable questions, and little room will be spared for convenient excuses. I got it then and I get it now, when someone promises high yield and Virtually no risk losing your $ isnt a risk, its a certainty if you dont get out in time. My sense is that presently central banks are now in the process of creating an infrastructure (Central Bank Digital Currency) which in reality will be retail deposit accounts offered by your favorite central bank, meaning, in turn, that the major regulator will now be in direct competition with the regulated (all banks both small and large) ending in ever-greater centralization of political and economic power (fewer and fewer small banks)Can or should this process be stopped? Matt is not as well informed as he should be about crypto. investment adviser would do without any input from her? Mergers & Acquisitions March 27, 2023, 11:39 AM Matt Levines Money Stuff: My impression is that he wrote a puff-piece intended to sooth a growing global panic and to prevent it from spreading to elite-controlled trust-based exchanges like stocks, bonds, real estate, and banks. Coinbase Global Inc. runs a So the basic rule is that US customers cant trade crypto derivatives, and big international crypto derivatives exchanges (Binance,FTX before it blew up) sometimes have US-only platforms (Binance US, FTX.us) that let US customers trade a limited set of products, but not mostderivatives. WebMatt Levine (born 1978) is a columnist for Bloomberg News covering finance and business. Political insights and answer will be: Still it is a little weird. It is illegal to run a crypto derivatives exchange in the US without registering it with the CFTC, and its not exactly easy to do that either; if you have a crypto derivatives exchange abroad but have not registered it in the US,it is illegal to let US customers trade on it. Lack of regulation means that exchanges can lend to customers to create leveraged positions and then use inside information to front run their clients and liquidate them. Exchanges can steal client assets because they have the power to order transactions and manipulate prices. Its painfully easy to obscure this behaviour by colluding with outside parties or by disguising yourself as one. The same tactic is used by loan sharks extend credit and sabotage the borrower so that you can exploit them and turn a healthy profit. To me the article reads as if Levines editors at Bloomberg were looking for a Temple Grandin to calm the feedlot. Bloomberg Surveillance, covering the latest news in finance, economics and investments. Thank you for the column and the response. Subscribe Sign in. 2) The arrow from crypto to fiat is never bigger than the fiat-to-crypto arrow. Of course you'd expect that the executives would be criminally Investors may as well take what they can getwhile theres an option available lest JIP and friends have buyers remorse. If youd like to get Money Stuff in handy email form, right in your inbox, please subscribe at this link. [ Addendum 20200821: Unfortunately, just a few days after I posted If you receive my monthly email, youll already know that Im a huge fan of Matts and that Money Stuff has become my go to source of business news. One recurring theme in the newsletter is Everything is Securities Originally published at his website. Home. But, but, in a kind of vertigo, what do youdo you dodo with peoples money? Many would argue that the folks at Tether are liars and criminals who applied the lessons of creative writing courses to their balance sheets and spawned a digital token used to manipulate and prop up the price of cryptocurrencies. But Levine doesnt discuss Tether as a blight on the industry, its just another little quirky crypto factoid. Bloomberg should consider notifying the NY State Attorney Generals office to let them know they made a grave error about Tethers trustworthy owners.

I was shocked they were worth real money. As there is no underlying source of economic productivity and cash flow in crypto, Exchanges view customer deposits as cash flow. This is the inevitable result as crypto is a negative sum game where fiat liquidity is ingested from the real economy, redistributed through tokenomics to whales and industry insiders, then deposited back into different bank accounts in the fiat financial system. The goal of the exchange is to seize client funds, either explicitly by betting against them and charging high fees, or implicitly, by gambling with funds without the consent of the depositor. August 7, 2020, 3:59 PM UTC. To those familiar with cryptos landscape, whether skeptic or true believer, I very much recommend reading The Crypto Story. Until that part happens, theres no rich. but calling them to say a disaster is coming, sell a tiny bit! Im a retired, Parkinsons-addled old school risk analyst who did a stint in subprime (where we made successive record profits every year off our halt-and-lame lawful prey). Its hard to build a network-effects business from scratch. Matt Levines Money Stuff: Big Banks Give First Republic Money. >>Unlike tokens, share price is supported by a companys underlying cash flow. Is anyone else reminded of Galbraiths bezzle? from me is a good defense! Some five or six years ago I had a conversation with a man who was a big crypto enthusiast ( If he got out in time he did REALLY well) that ended with Tom, you just dont get it, Crypto is a CONCEPT. call your adviser and say a disaster is coming, sell everything!, Given his shtick is critical analysis made accessible to the average reader, its rare that he mentions anything without pointing out any gaping financial/legal flaws and mocking those involved Yet he includes constant disclaimers and caveats that leave the reader to make up their own mind. Thanks Yve and commentariat.

are doing one last job, specifically installing solar panels at Sign up now so you dont miss the first issue. recently, the ETF investors lose $20their entire investmentand, uh, It is like contemplating the vastness of outer space. He writes the newsletter Money Stuff for Bloomberg, which is published every weekday. Levine's analysis in his column have been widely covered by other newspapers. [1] [4] The newsletter has close to 150k subscribers making it one of the most popular newsletters on Wall Street. Sound Familiar? But its not Levines control of his register or his mastery of arcana that I find frustrating, but his default posture. Your opening sentence is an assignment, and hence a violation of our written site Policies. They and many others believe something is worth whatever someone is willing to pay for it. Is that a general millennial belief? Matt Levines Money Stuff: The CFTC Comes for Binance Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. When we dont criticize facts that we know are wrong or misstated, we wind up in a situation where the lies spread, the public fails to understand reality, and then everyone is surprised when an FTX happens (except those well versed in crypto). By Sal Bayat, a technologist and 15 year veteran of the telecom industry who designed and built out a wide array of infrastructure.

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You can subscribe at this link, or read the archive at this link. The deal could potentially stumble if a minimum two-thirds of the shares arent tendered a required threshold for the transaction to go through. At some point tumblers like Tornado will become legally unviable as prosecutors realize that mixing tokens just makes them all dirty. Still, it has a high and fluctuating market price; people have gotten rich buying Bitcoin. the belief that blockchain has desirable properties as a database, the idea that blockchain or crypto is somehow useful for video games, the implication that crypto fraud isnt THAT effective when its managed to fund the DPRKs nuclear weapons program, has driven millions into the waiting arms of crypto con artists. The emergence of clarity in a long-running drama between global hedge funds and an iconic firm pushed the stock price up over 4% in the immediate aftermath. But they are barely being used in real world commerce.1 Their connection to tax avoidance/evasion suggest that even using them for large transactions might attract undue attention of the anti-money-laundering police. This is an odd topic to have thought about a lot I admit But like Sal Bayat mentions, Matt Levine is an excellent writer so theres a lot of stylistic choices to think about on top of the subject matter in his columns haha! The first is that youre a shitty person. Next is that you better make damn well sure that the amount of money being removed from the scheme doesnt exceed the total amount of liquidity available. This can get tricky, you want to service withdrawals so people can be seen making money from your scheme, but you cant have too many people taking out their money or the whole thing will come crashing down faster than an algorithmic stablecoin. He later went on to become an investment banker for Goldman Sachs, where he structured and marketed corporate equity derivatives for four years. Levine was also a law clerk for the U.S. Court of Appeals for the 3rd Circuit. But theres no realization that crypto is a weaponization of the forces in our economy that extract value without providing meaningful utility. The truth is that society is impoverished when we allow monopoly rents to be extracted by the already fabulously wealthy. Rampant economic inequality destroys aggregate societal wealth. But, then, Gramps here is way out to pasture. They use the same channels to move Money, Materiel and Personnel as criminal organizations do and it is a mutually beneficial situation, a symbiotic relationship between parasites that share the same host. WebMatt Levine is a Bloomberg Opinion columnist covering finance. I continue have major dubiety over crypto. Thats close to a 4% chance. I read Matt Levines Money Stuff newsletter with extreme regularity (mostly for outsider looking in entertainment value and to keep up with finance news headlines) and I have to say I wonder how edited the crypto story was, it felt almost gentle by his standards. Then Bitcoin and Ethereum are discussed for about 30 minutes. Today the US Commodity Futures Trading Commission sued Binance Holdings Ltd., Changpeng Zhaos big crypto derivatives exchange, for letting Americans trade crypto derivatives. If you'd like to get Money Stuff in handy email form, right in your inbox, please recorded solar revenues of $0.03 million and $0.04 million,

Initially, it stated the tender offer price was considered the best price that can be expected, noting that its hard to say whether it will reach a level that can be clearly recommended to shareholders. Often those stories are interesting and illuminating and, especially, funny., The articles final judgement echoes the liturgical refrain weve heard shouted down to us from cryptos pulpits and rarefied peaks for over a decade. Scaramuccis SkyBridge Capital Was Spiraling, and Then Came FTX, Sunaks Crypto Plans Are Hit by Reluctant UK Banks. WebMatt Levine's Money Stuff. Just How Dangerous Are Indias Generic Drugs? The implicit assertion here is that whats left in crypto is worthwhile and valuable. Yes there were scams and speculation, but thats been dealt with. This framing doesnt let the reader consider the possibility that crypto is still a giant dumpsterfire full of swindlers. i predict that we wont learn a damned thing from all thisand that the actual answer(which he also mentions)doing real things in the real world, making food and housing and things people need as the fundamental purpose of an Economy(gr: household)will be once again lost in an even greater round of obfuscation and evangelicism that preys of peoples worst instincts.