Major crypto trading firm Alameda Research might be insolvent

Re:Major crypto trading firm Alameda Research might be insol... by aljungberg on Friday November 04, 2022 @08:58AM (#33465825)

If those loans are no-recourse loans with this FTT token as collateral, then should the token crash the liability just "disappears". The collateral will be sold to cover the loan. If the collateral is now worthless that was the risk the lender agreed to take on when issuing a no-recourse loan.

If they are Defi loans for example, they're pretty much automatically no-recourse loans.

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Re:Major crypto trading firm Alameda Research might be insol... by cryptoanon on Friday November 04, 2022 @09:02AM (#33465891)

Exactly. It seems like the author has very limited insight in the space. It makes you curious how they could come to such a headline/conclusion, when they spend the entire article, talking about the assets instead of the liabilities!

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Re:Major crypto trading firm Alameda Research might be insol... by automatic6131 on Friday November 04, 2022 @09:27AM (#33466314)

>It seems like the author has very limited insight in the space.

lol. Lmao, even.

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Re:Major crypto trading firm Alameda Research might be insol... by gjvc on Friday November 04, 2022 @11:31AM (#33468374)

You ought to know by now that HN readers are experts on everything.

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Re:Major crypto trading firm Alameda Research might be insol... by NotYourLawyer on Friday November 04, 2022 @10:03AM (#33466843)

Are no-recourse loans typical in this space? Seems insane.

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Re:Major crypto trading firm Alameda Research might be insol... by josu on Friday November 04, 2022 @10:05AM (#33466871)

Unless their liabilities are also in FTT.

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Re:Major crypto trading firm Alameda Research might be insol... by jevgeni on Friday November 04, 2022 @10:06AM (#33466896)

that kind of a dynamic is not unique to crypto.

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