3. It wasnt the case that the cost of a barrel had fallen to some scary-low number. Tiger Global Slashes Value of Private Tech Bets by Billions, Documents Show. Martin Shkreli tells Do Kwon Jail is not that bad.. The last time Ilooked at Yahoo, in December, I calculated that the after-tax equity value of its actual businesses, outside of Alibaba and Yahoo Japan, was about $1.7 billion. Levine is known for his humorous, witty, deadpan writing style. Jan 12. He began his post-collegiate career as a Latin teacher, then worked as a lawyer at Wachtell, Lipton, Rosen & Katz before advancing to Goldman. but it is a lot like stock in FTX. Mr. Levine, of course, is not a conventional writer. If you are a crypto exchange, you might issue your own crypto token. Twitters ad business is not recovering. Many banks and financial institutions use customer funds for commercial purposes including lending and trading, meaning that they often hold only a fraction of their customer assets at any given time. You can check your account balance, and Coinbase says you have 0.5 Bitcoin or whatever. If you go to an investment bank and say lend me $1 billion, and I will post $2 billion of your stock as collateral, you are messing with very dark magic and they will say no. Twitter says user growth has picked up since Elon Musk took over. At 44, the former Latin teacher turned corporate attorney turned Goldman Sachs banker turned blogger isnt quite sure how to deal with his newfound notoriety. Just a weird business all around. Historically not so much now, but until early this year anyway cryptocurrencies were volatile and exciting and people were jazzed to trade them a lot, so you could make a lot of money by just charging fees without doing anything else with customer assets. Also the fact that Customer C had all that FTT in the first place is not a great sign. To contact the author of this story: Matt Levine at [email protected]. It might be a reason for the price of FTT to go down, if you think that Alameda has too much of it and might need to sell it. by Sabrina I. Pacifici on Sep 26, 2021. When we hear on the news "$8 billion collapse!" it's all fake because of crap like the Serum tokens. FTX's Balance Sheet Was Bad - by Matt Levine. Also private-market marks, ransomware ethics, Coinbase KYC and Celsius crypto ownership. The popular messaging app Telegram has brought in so much money from a small group of private investors that it is calling off a planned sale of cryptocurrency to the wider investing public, according to a person familiar with the matter. 00:00. You can subscribe at. Oliver Keens asks: has our morality changed or are we just too deferential, confused or downright hypocritical to discuss it any more? Left Coast Crime is an annual conference organised by mystery fiction fans for mystery fiction fans, first held in San Francisco in 1991. If the price of Bitcoin falls by 90%, Customer B will be thrilled. Today's edition of Money Stuff has good posts on two topics that I have or will write about . Remarkably, Mr. Levines piece was written more than an hour before the market went haywire. If it's a $100 bond, you should get $100 back, no matter what. Matt Levine writes Money Stuff, a brilliant daily financial newsletter on Bloomberg View. @matt_levine + Get alerts for Matt Levine Robinhood Markets Inc. is in the business of getting people to trade stock (and options, and cryptocurrencies) on their phones. His newsletter, Money Stuff, is one of the most popular on Wall Street with over 150,000 subscribers as of October 2020. There are web pages / articles I still read - I'll check out things by Derek Sivers, Patrick McKenzie/Bits About Money, Money Stuff by Matt Levine, all by local HN recommendations. . He makes readers feel in on the savage joke that is late capitalism. Dylan LeClair / @dylanleclair_: Heavy hitting stuff. Eventually he called CZ himself, and they announced a non-binding letter of intent for Binance to acquire FTX and make customers whole. Money Stuff. One other point here is that if this is the story, then it is not a liquidity crisis but a solvency one. After graduating from Harvard in 2000, with a major in classics, Mr. Levine taught Latin at a high school in a Boston suburb. FTT goes down, leaving FTX undercapitalized, leading to customer withdrawals, leading to ruin. His column discusses current events in corporate finance and market. S&P. When I was an investment banker, one thing that I did was pitch convertible bond offerings to companies. Despite having made more money at white-shoe law and Wall Street firms than he does as a writer, Mr. Levine says he is happier now. You say sure, sounds good, and hand over all your collateral. Read deeply reported stories from the largest newsroom in tech. Mr. Levine was born in 1978 and grew up in the suburbs of Long Island. Also WWE governance, VC shame and the origins of the jury. When FTX.com, one of the largest crypto exchanges, was instantaneously vaporized yesterday, Coinbase put out a statement, the gist of which was dont worry, we are not going to be instantaneously vaporized. The part that I want to focus on is this paragraph: There cant be a run on the bank at Coinbase. Three Arrows, FTX/Alameda, bribes and bonuses. In August, Musk had said he was done offloading Tesla stock and that it was important to avoid an emergency sale of the shares in case he was forced to close the Twitter acquisition and struggled to bring in additional equity partners. Dont go put all your money in Coinbase because I said so or anything! 8. Each weekday, Mr. Levine, 42, wakes up at 5 in the morning. Also profitable nonprofits, FTX assets and WWE governance. I felt both that the job was bad and that I was bad at it, he said. As of yesterday's close, it had a stock price of $0.0004 and a market capitalization of about $98,000; it trades an average of about $13.26thirteen dollars and twenty-six centsworth of stock each day, though it had a big day last week when almost $400 worth of stock traded. This is the story of his ascension. But selling billions of dollars of Tesla stock to fund a weird quest to buy Twitter would I mean, be a distraction at least. One classmate, the journalist Elie Mystal, had a lot to say about Mr. Levine as an undergraduate that he was the valedictorian of their class; that he partied, too; that he once suggested applying Etruscan decision-making processes to the question of what to do next during a late night out but he placed a special emphasis on the footnotes. Coinbase always holds customer assets 1:1. And a surprising subset of them will email me. As a subscriber, you have 10 gift articles to give each month. Thanks! Never miss an update. Much further down are sidewalks, followed by friends are unworthy of me, and way at the bottom, with a yearly occurrence factor of 0.5, birds regurgitate food and feed young with it and Kant, Immanuel.. Mr. Levines favorite subjects include insider trading statutes, bond-market liquidity and the ubiquity of securities fraud, but his columns are never boring. Has it been borrowing elsewhere against FTT? Apollo Global Management Inc., Carlyle Group Inc. and KKR & Co. said in regulatory filings this week that they received letters from the Securities and Exchange Commission on their use of electronic messaging for business. You have to pay Customer B out of your own capital, and you dont get it back from Customer A. Youve just lost money. Lets accept, for the purposes of this essay, that founders and venture capitalists are engaged in a simple trade. So the more people who sign up for Robinhoods service, and the more they trade, and the more volatile the stocks that they trade are, the more money Robinhood makes. GSO had bought CDS protection that would pay off if Hovnanian defaulted. But one general point is that while some customers will want to borrow dollars to buy Bitcoin, other customers will want to borrow Bitcoin. Mr. Levine wasnt always a darling of business media and finance Twitter. Then he starts to write. Tesla Inc. Chief Executive Officer Elon Musk sold at least $3.95 billion of the electric-vehicle makers shares just days after closing his buyout of Twitter Inc. Musk unloaded 19.5 million shares, according to regulatory filings on Tuesday in New York, his first disposals since August. You have one Customer C who says hi I would like to borrow 50 Bitcoins and $1 million, I will secure that loan with 150,000 FTT, each of which is worth $20.. But FTX doesnt have their money; it has FTT, and a loan to Alameda. Everybody used WhatsApp and now everybody writes checks. It is a death spiral. Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. I used to write at Dealbreaker. A few months ago, Matt Levine, Bloomberg's ascendant tech and finance columnist, schlepped from his home in Westchester County into New York with his wife and three small children to have weekend brunch on the Upper West Side, joined by his parents, his aunt and his uncle. Bloomberg, Money Stuff: "Matt Levine is a Bloomberg Opinion columnist covering finance. By uncritically mentioning crypto's multi-trillion dollar market cap 9 times, Levine, a Harvard educated financial expert, embeds a lie into the unconscious of the reader. The co-founders of Instagram, which Facebook Inc. bought in 2012, quit on Monday (Sep. 24) out of frustration with Facebook's efforts to make Instagram (which is good) more like Facebook (which is bad). Matt Levine is a Bloomberg Opinion columnist covering finance. He is doing exactly what he has long wanted to do. Or something; you might set the margin requirements higher or lower, letting customers borrow 25% or 50% or 95% of the value of their FTT token collateral. The SEC may have more power over airlines than Secretary Buttigieg.However the SEC has not (yet) gone after Southwest. Levine took several months off in 2020 for parental leave after the birth of his second child. I write the Money Stuff newsletter at Bloomberg Opinion. Learn more about a Bloomberg Law subscription. Matt won yesterday's game and returns today to . Levine seems fond of Musk. [email protected] . Bloomberg's web site requires a subscription but you can also get the Money Stuff articles as an occasional email.It arrives at most once per day. If I short Bitcoin at $20,000 via futures and put up $4,000 of collateral, that is a leveraged trade; if Bitcoin goes above $24,000 then my collateral is gone. But the other weird thing about this bank is that, every day, you come in and say hey Id like to exchange my dollars for euros or my euros for pounds or whatever, and each time you do that the bank charges you a dollar. And so, at 33, Mr. Levine sat down to write. [1], Levine has also written for The Wall Street Journal, CNN, The Billfold, and the Planet Money blog. Everyone knows this, which is why crypto exchanges and securities broker-dealers, who have the same basic business model spend most of their time thinking about risk management. 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You can subscribe at this link, or read the archive at this link. . Matt Levine is a finance columnist for Bloomberg News. Never use a token you created as collateral suggests, to me, that FTX accepted its FTT token as collateral, probably from Alameda, probably in exchange for borrowing assets that it owes to customers. Thanks! On April 20, something occurred that was unprecedented in the history of financial markets: The price of oil went negative. Anyone can read what you share. Today's challengers: Caroline, Matt, Indra. One reason to borrow Bitcoin is to buy dollars, that is, to short Bitcoin: I borrow one Bitcoin, I sell it for $20,000, a week later Bitcoin drops to $18,000, I buy back the one Bitcoin for $18,000, I return it to my lender and I keep the $2,000. Business media and finance twitter hypocritical to discuss it any more it #! Went negative and Celsius crypto ownership the largest newsroom in Tech of financial markets: the of. 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