Crypto dominoes fall in the wake of FTX's collapse

Re:Crypto dominoes fall in the wake of FTX's collapse by ceejayoz on Thursday November 17, 2022 @10:38AM (#33640423)

If you buy one coin for $10 crypto considers that the value of all of the millions of coins. https://en.wikipedia.org/wiki/Wash_trade

Yes, the $10 exists, but that $10 trade may have inflated the value of the coin by billions.

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Re:Crypto dominoes fall in the wake of FTX's collapse by johnvanommen on Thursday November 17, 2022 @11:13AM (#33641015)

Exactly. That's the fundamental reason that FTX is just the tip of the iceberg.

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Re:Crypto dominoes fall in the wake of FTX's collapse by archontes on Thursday November 17, 2022 @11:36AM (#33641384)

This is just a demonstration that this is a naive way of estimating value.

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Re:Crypto dominoes fall in the wake of FTX's collapse by dougmwne on Thursday November 17, 2022 @01:34PM (#33643441)

But this is exactly how all assets are priced and that price signal is good enough to take loans out against the asset collateral and create even more money supply.

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