Re:Crypto dominoes fall in the wake of FTX's collapse
by chii on Thursday November 17, 2022 @09:07PM
(#33648926)
> You create an NFT and sell it to yourself for $200,000.
> Now you have $200,000 and a $200,000 NFT
But you now also have a liability of $200,000. Your total asset is still $200,000 , not $400,000.
> If you can convince someone to buy that arbitrary NFT at 95% discount
so you just sold the NFT for $10,000. If somebody else got tricked into thinking they got a 95% discount - that's on them. A fashion store often marks up their clothing by 100%, and have "sales" of 50%!
Re:Crypto dominoes fall in the wake of FTX's collapse
by three_seagrass on Friday November 18, 2022 @01:06PM
(#33658964)
>But you now also have a liability of $200,000. Your total asset is still $200,000 , not $400,000.
Assets are not liabilities, so you'll need to explain why you think it is a liability.
Fashion brands and their physical goods are definitely not the same as NFTs, insomuch as they at least have intrinsic value. NFTs only intrinsic value is they good for ripping off greater fools.
- You start the day with $200,000. You create an NFT and sell it to yourself for $200,000.
- Now you have $200,000 and a $200,000 NFT, meaning you've doubled your wealth to $400,000.
- If you can convince someone to buy that arbitrary NFT at 95% discount, you end up having $210,000 in cash by the EOD.