xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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The crypto is so broken that there is no promise anymore.
Where is SBF sex tape?
https://twitter.com/0xMubeen/status/1593713399984230400
Grayscale announced their funds were okay and due to security concerns, they would not share cold wallet addresses.
https://twitter.com/Grayscale/status/1593737708723118080
Of course, this sounds too alarming.
FTX announced that everything was okay until eight days later with the bankruptcy filing.
But I think Grayscale has a very sophisticated fund structure and PR to handle this potential bank run.
Whether or not I agree with them is another story, but the way they handled this situation is a very nice lesson for crypto firms.
The fact is that Grayscale got bad impact on the recent bankruptcy through 3AC then FTX.
https://twitter.com/contagionOG/status/1593785225158574084
Those were major blows and probably pretty bad on their balance sheet.
It reflected on their fund's valuation:
https://twitter.com/DeeKnig67666008/status/1593786092897337345
But, their fund structure is very sophisticated.
https://twitter.com/DeepSpaceSimian/status/1593764364024270848
They structure the fund like closed-end fund (CEF)!
So long story short, here is why CEF is so smart for crypto investment!
1 - they do not need to face reinvestment 2- they do not need to hold excess cash to meet redemptions 3 - it is a stable capital base
Unlike other crypto investments that people think should be redeemed with the same amount of crypto, CEF does not need to!
This type of investment is for high-leverage purposes to invest in liquidity assets.
Whether or not Grayscale funds are fully backed by Coinbase vault does not matter to investors.
CEF loses only because:
Distributions to shareholders Poor investment decisions A tender offer to repurchase shares, which is a method to control discounts For leveraged funds only, forced sales to remain in compliance of leverage limits The liquidation of the fund
Suppose my suspicion of their investment strategy is correct. In that case, Grayscale is a very sophisticated investment fund and will likely survive in the current environment as long as there are investors to purchase funds.
Photo by Hunters Race on Unsplash
The crypto is so broken that there is no promise anymore.
Where is SBF sex tape?
https://twitter.com/0xMubeen/status/1593713399984230400
Grayscale announced their funds were okay and due to security concerns, they would not share cold wallet addresses.
https://twitter.com/Grayscale/status/1593737708723118080
Of course, this sounds too alarming.
FTX announced that everything was okay until eight days later with the bankruptcy filing.
But I think Grayscale has a very sophisticated fund structure and PR to handle this potential bank run.
Whether or not I agree with them is another story, but the way they handled this situation is a very nice lesson for crypto firms.
The fact is that Grayscale got bad impact on the recent bankruptcy through 3AC then FTX.
https://twitter.com/contagionOG/status/1593785225158574084
Those were major blows and probably pretty bad on their balance sheet.
It reflected on their fund's valuation:
https://twitter.com/DeeKnig67666008/status/1593786092897337345
But, their fund structure is very sophisticated.
https://twitter.com/DeepSpaceSimian/status/1593764364024270848
They structure the fund like closed-end fund (CEF)!
So long story short, here is why CEF is so smart for crypto investment!
1 - they do not need to face reinvestment 2- they do not need to hold excess cash to meet redemptions 3 - it is a stable capital base
Unlike other crypto investments that people think should be redeemed with the same amount of crypto, CEF does not need to!
This type of investment is for high-leverage purposes to invest in liquidity assets.
Whether or not Grayscale funds are fully backed by Coinbase vault does not matter to investors.
CEF loses only because:
Distributions to shareholders Poor investment decisions A tender offer to repurchase shares, which is a method to control discounts For leveraged funds only, forced sales to remain in compliance of leverage limits The liquidation of the fund
Suppose my suspicion of their investment strategy is correct. In that case, Grayscale is a very sophisticated investment fund and will likely survive in the current environment as long as there are investors to purchase funds.
Photo by Hunters Race on Unsplash
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