Bad capital management is cause of all bad things.
With bad capital management, any blackswan event will cause a collapse of that company financially. It can be a hack by bad security. It can be an attack like Terra Luna. It can be massive liquidation calls like Celcius, Three Arrows Capital, Voyager etc.
But if you have bad financial, capital management, your company is always at risk of bankruptcy.
In personal view, for your personal account, if you have bad management, you will be at risk of liquidation or lose all money with one failed or scam exit project.
It seems that the more accurate term would be "bad risk management" - which is more specifically addressing what seems to have gone with companies that were loaning money to three arrows capital but not getting collateral... so yeah, maybe you tbct_mt2 are saying the same thing. but using a term that is less descriptive of how the listed companies failed to account for risk, but then the bad risk management of some companies caused cascading events towards other companies who might not have been engaging in the bad risk, but the fact that they entered into a relationship with some other entity that was employing bad risk management caused their own liquidations.
Laser eyes, fuck the banks, fuck the government, they keep shouting these as they know the userbase is susceptible to this message, and if somebody dares contradicts them there is the mass destruction weapon of the cultist, the FUD!!!!! Dare to say anything about an exchange, a token and you're going to labeled as a FUD-ist, a horde of 5$ investors who think their pennies will turn into millions by hitting like and kissing the ass of some cryptopornstar will start crying FUD, will swear everything is fine, that moon is scheduled tomorrow.
Holy shit you are exaggerating.
Yes... when some of these services end up going belly up, we end up seeing that they had been swimming naked, but that does not mean that everyone operating an exchange or everyone involved in various kinds of bitcoin businesses are without ethics, morals and/or even engaging in the same kinds of fraud and/or misrepresentations and/or failures/refusals to employ sufficient and/adequate risk management.
I am not defending the scammers because surely there are quite a few scammers... who try to act highfalutin and as if their shit don't stink.
Sure, I will give you some benefit of the doubt to speculate that there are more of some of the persons and exchanges playing loosey and goosey with customer funds and/or employed degenerate gambling strategies and engaging in self-dealing rather than mostly sound business practices who have so far NOT gotten caught with their pants down and they may have been able to get by so far, this time... Coinbase surely seems like one of them. and maybe it is a matter of degree too, that some of the ones engaging in risky behavior will have had learned to clean up their shit a bit so that they do not end up going bankrupt.. become more responsible.
And these pieces of * like Mashinsky know that you just have to throw a few useless tokens at them and you have an army of online supporters ready to ridicule any attempt at showing the truth.
For sure, not everyone sinks to those low levels.
Just as the other moron tattooed a useless token on his arm, I wonder what story is behind that shirt, I have a feeling right now that the majority or at least a large chunk of the money he made selling his tokens is sitting right now in a bank, not in a Defi solution that would magically replace banks.
The same thing that Gerald Cotten did with his clients' money in the case of his crypto exchange Quadriga, if the Canadian authorities' investigation is to be believed.
Haven't heard that name in a few years. Did we every get to the bottom of it? Last I looked in to it (which, as mentioned, was several years ago) I was thoroughly unconvinced by the story that he had died. It looked far more likely that he had scammed all his customers, fled the country, faked his death, and was living the high life somewhere under a new identity. It seemed all this was planned in advance, so by the time the exchange collapsed and people started looking for him, he was already long gone.
One thing has surfaced since then, that Quadridrga has financed itself on customers' money, and lost a lot of them during the time of actually operating, so the claimed 130 million have never been actually there, much of it being spent in the year before Cotten's supposed or real death. They've managed to get ahold of real estate investments of 20 million, so it's highly likely he sold or used his customer's funds well beyond that date to purchase stuff for himself and then run the business as a Ponzi.
So, basically, the exchange was already bankrupt with almost nothing left some 8 months prior to his again...death?
My tentative theory is that Cotton (and perhaps others) were using the exchanges as ways to launder money, so it is probably not accurate to call it losses, even though technically there were losses involved.. in other words, Cotton was NOT likely so innocent as to have had been gambling with customer funds to try to get the money back, but instead just using those techniques as ways to get money to himself and/or to anyone who he was sharing with.
So, basically, the exchange was already bankrupt with almost nothing left some 8 months prior to his again...death?
On the link I posted above in the post, you can see the report of the Canadian authorities, which summarizes what they concluded from their investigation. However, it seems quite unreal to me that a man managed to gamble away more than $160 million through various investments, as if he was a total anti-talent for such things, and everything that was revealed in the documentary clearly shows that he was a very insidious scammer from his earliest days.
Yep.. the story of super incompetence does not add up... for sure.
