[ExI] bitcoin again

[spike at rainier66.com]

From: extropy-chat <extropy-chat-bounces at lists.extropy.org> On Behalf Of Stathis Papaioannou via extropy-chat



>… it came to light that these tokens were being used by FTX as collateral for loans. Normal practice in the crypto world is to use coins such as BTC or ETH as collateral for fiat loans, which are liquidated if the borrower defaults or if the value of the collateral drops below an agreed amount. But using a coin that you created, the value of which depends on the financial health of your company, to secure loans to yourself, can obviously lead to trouble. CZ saw an opportunity to give the toppling edifice a push, bringing it all down.

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Stathis Papaioannou

 

 

 

 

WOWsers, thanks for that Stathis.  The scheme sounds a lot like a private industry version of the US Government’s “quantitative easing” whereby it offers its own debt as surety for further loans.

 

spike

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