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readams 3 hours ago

As always, Matt Levine has the best take on this:

https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-...

"I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at Time 0 you give them an extremely gameable system that can produce billions of dollars of profit, at Time 10 your system is going to be a smoking wreckage and they are going to have billions of dollars of profit. That’s their whole job, you know? I couldn’t tell you in advance what all the intermediate steps will be, and in fact in hindsight I cannot tell you what the intermediate steps actually were, how Jump and Jane Street made money off the collapse of Terra. But as a heuristic, I mean, come on. Terra was like “hello we have a balloon full of money, here is a pin, dooooooon’t pop the balloon.” Guess what!"

yunnpp 3 hours ago | parent [-]

I don't really follow this space, but is evaporating $50bn not a concern to anybody?

klodolph 2 hours ago | parent | next [-]

The $50bn is what you get when you multiply the number of coins times the price of one coin. This is a kind of fun number to think about but there are a lot of ways it doesn’t match up with reality.

Like, if I make a company with ten billion shares, and then put shares for sale at $5 a piece, and you buy one, then my company would also have a $50bn valuation, by the same logic that Terra / Luna had a $50bn valuation.

bombcar 2 hours ago | parent | prev | next [-]

The reality is that the $50bn was already gone, the collapse just revealed it.

It's like with Madoff; the billions weren't lost when it collapsed, the billions were already gone (or never existed).

wmf an hour ago | parent | prev | next [-]

It was enough of a concern to cause a worldwide manhunt for the guy responsible who is now in prison.

SpicyLemonZest 2 hours ago | parent | prev | next [-]

There was never a real $50bn to be evaporated. It's like saying that $1.2tn evaporated in the Bitcoin market drawdown since October - it doesn't mean value has been destroyed, it means the market's estimate of how much value existed was wrong.

3 hours ago | parent | prev | next [-]
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arkis22 2 hours ago | parent | prev [-]

you might consider me an ass, but I think every dollar you put into crypto should be considered dead money. it is not protected by anything. you are gambling on nothing

soulofmischief an hour ago | parent [-]

How is US currency any different?

kortilla 29 minutes ago | parent [-]

The government with a monopoly on violence and lawmaking uses it to pay for things and to collect taxes.