undefined | Better HN

0 pointsRC_ITR3y ago0 comments

> The tokens didn't suddenly drop in value.

May I point you to a chart showing the price of Solana (SBF's preferred token)? Down 80% in four months is a pretty sudden drop in value. To be clear, I think the fraud started then, but that was after the damage had been done.

>He has experience as a market maker and remaining delta-neutral

Yeah, but market makers in unexpectedly lopsided markets lose all the time. It's the risk that enables them to 'earn' a take rate.

0 comments

dibt3y ago

These were the top tokens they held in order of how they marked them on their balance sheet:

FTT $5.9B

SRM $5.4B

SOL $2.2B

MAPS $865M

Found here:

https://images.squarespace-cdn.com/content/v1/596a07c029687f...

>May I point you to a chart showing the price of Solana (SBF's preferred token)? Down 80% in four months is a pretty sudden drop in value.

FTT, SRM, and MAPS are the garbage tokens they claimed were worth more than they actually were. They each had major drawdowns more than 4 months ago. SOL even had a 60% drawdown by March. None of this was sudden. My point is they knew they were in trouble long before any of the solvency/liquidity issues.

It's thought that their trouble started in May during the Luna/Terra collapse. Alameda's loans were pulled when 3AC blew up. That's when they minted more FTT. SRM also had similar supply increases out of nowhere. They weren't investments as you said. They were tokens they could mint at any time to collateralize new loans.

Maybe they thought the same could be done with SOL? It is known to be highly centralized. There are also known issues with the Solana ecosystem where TVL for layer 2 tokens were double counted, making it seem more valuable.

RC_ITROP3y ago

I'm not sure what point you're trying to make by showing me they held $2bn of Solana in Nov-22 (itself, like all crypto, a made up and useless/worthless thing) that was worth $10bn in Nov-21.

Like sure, to make themselves feel better when they stared at Excel, they minted FTT to fill the gap, but so what?

To your point, just because I mint 1bn coins and sell one to my roommate for $1, it doesn't actually change the fact that I lost $700mn on $TSLA (the true problem).

EDIT: Maybe to make my point more clear - the one good thing about finance is that if I sell a Orange juice futures contract, I need to get the oranges from somewhere, or I can go to jail.

Crypto's innovation is eliminating the need for oranges, but turns out that's not an innovation at all

dibt3y ago

> (itself, like all crypto, a made up and useless/worthless thing)

oh... I see what's happening here. Good luck on your crusade.

1 more reply

remarkEon3y ago

>That's when they minted more FTT.

Can you explain how exactly they did this? I want to understand, on a technical level, how they "minted" more of these tokens.

dibt3y ago

When/who can unlock/mint token supply is defined in a smart contract. It's different for each smart contract.

Here's the code for the FTT Deployer contract:

https://etherscan.io/address/0x50d1c9771902476076ecfc8b2a83a...

I'm not familiar enough with the Ethereum's Solidity programming language to give you an explanation.

It looks like it's an OpenZeppelin template. I've seen these re-used elsewhere. You can look through their docs to understand it better.

https://docs.openzeppelin.com/contracts/4.x/erc20-supply

j / k navigate · click thread line to collapse

0 comments

dibt3y ago

These were the top tokens they held in order of how they marked them on their balance sheet:

FTT $5.9B

SRM $5.4B

SOL $2.2B

MAPS $865M

Found here:

https://images.squarespace-cdn.com/content/v1/596a07c029687f...

>May I point you to a chart showing the price of Solana (SBF's preferred token)? Down 80% in four months is a pretty sudden drop in value.

RC_ITROP3y ago

I'm not sure what point you're trying to make by showing me they held $2bn of Solana in Nov-22 (itself, like all crypto, a made up and useless/worthless thing) that was worth $10bn in Nov-21.

Like sure, to make themselves feel better when they stared at Excel, they minted FTT to fill the gap, but so what?

To your point, just because I mint 1bn coins and sell one to my roommate for $1, it doesn't actually change the fact that I lost $700mn on $TSLA (the true problem).

EDIT: Maybe to make my point more clear - the one good thing about finance is that if I sell a Orange juice futures contract, I need to get the oranges from somewhere, or I can go to jail.

Crypto's innovation is eliminating the need for oranges, but turns out that's not an innovation at all

dibt3y ago

> (itself, like all crypto, a made up and useless/worthless thing)

oh... I see what's happening here. Good luck on your crusade.

1 more reply

remarkEon3y ago

>That's when they minted more FTT.

Can you explain how exactly they did this? I want to understand, on a technical level, how they "minted" more of these tokens.

dibt3y ago

When/who can unlock/mint token supply is defined in a smart contract. It's different for each smart contract.

Here's the code for the FTT Deployer contract:

https://etherscan.io/address/0x50d1c9771902476076ecfc8b2a83a...

I'm not familiar enough with the Ethereum's Solidity programming language to give you an explanation.

It looks like it's an OpenZeppelin template. I've seen these re-used elsewhere. You can look through their docs to understand it better.

https://docs.openzeppelin.com/contracts/4.x/erc20-supply

j / k navigate · click thread line to collapse