Comment by peyton
3 years ago
A nice narrative that falls apart when you remember LTCM, Archegos, etc. I don’t understand why you think crypto funds don’t arrange the same kind of “oversite” you describe.
3 years ago
A nice narrative that falls apart when you remember LTCM, Archegos, etc. I don’t understand why you think crypto funds don’t arrange the same kind of “oversite” you describe.
LTCM was bailed out with government (Fed) coordination. Archegos was only survivable because it was in a huge bull market and the losses were just a few billions dollars which was possible to be absorbed by the big banks.
> I don’t understand why you think crypto funds don’t arrange the same kind of “oversite” you describe.
Because they don't. Because it's a wild west. TradFi has it's failures as well - but that's "whataboutism".
DeFi is collapsing in real time and we'll probably see oversight and regulation around this in the near future.
>DeFi is collapsing in real time and we'll probably see oversight and regulation around this in the near future.
From the perspective of people who support the mission of DeFi and aren't just in it for the money, this is a feature, not a bug. We want these dodgy, extractive institutions to go under and not have to bail them out.
Unfortunately, large defi institutions have been advertising to retail investors. Many of whom have not just had a haircut, but their whole head shaved.
Government regulation of retail finance is a feature, not a bug.
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