Official BGOL Crypto Currency Thread ★★★★★
- Thread starter Matt Beesy
- Start date
People don't really understand what Blackrock is, or what they do.
So let's go inside...
But first a little about their founder and CEO Larry Fink, since it will be important later
Larry joined Wall St in 1976. He was smart and made money. He pioneered the idea of debt securitization (packaging up different loans as bonds). He then ran the trading desk for those Mortgage Backed Securities (MBS). Yes, those bonds that led to the 2008 GFC
*smiles*
Larry then did a boo-boo and lost >$90mm taking a wrong bet on interest rates. The naughty boy realized:
1) risk management is important
2) client trust is important
So the ambitious Larry decided to start his own firm focused on these 2 principles.
aka. "Trust me bro"
To get started, he went to his mate at Blackstone Group (yes, that one) and got a $5mm line of credit. Thus, Blackstone Financial Management was born. 20 years (and a lot of M&A later) this became Blackrock, which today has ~$9TN of AuM and is the largest AM in the world.
But building a great business isn't enough for our Larry. In 2016 he was being touted as Treasury Secretary under Hillary Clinton.
He is deeply politically connected, a very vocal Democrat, and is often heard saying "As I told Washington..."
now, back to Blackrock, that big asset management firm that some people think will "own all your bitcoins".
Blackrock doesn't own shit, their clients do. Blackrock simply manages the assets. They don't have a custody feature. They are not a bank.
don't believe me? check the FIRST PAGE of their Annual Report
s24.q4cdn.com/856567660/file…
so how does it work then? Simple. Let's say you want to invest in US equities. Rather than going out and buying all the stocks yourself and rebalancing frequently/paying tax on each transaction, you buy a Blackrock ETF or Blackrock actively managed fund and they do it for you.
You get a receipt to confirm your % ownership of the ETF/active fund, which then tracks the value and performance of those underlying assets. Blackrock can't do much with those assets, other than use their custodian banks to hold them
(note: repo only under ISDA/CSA)
Similarly, Blackrock can't do much with the spot bitcoin that goes into the custody account at Coinbase. The $BTC simply does not belong to them. They just provide a service for you to get access to the price/performance.
(image is my own)
BUT, where it does get v interesting is Blackrock's relationship with the US Government and Federal Reserve. In 2008, who did the Fed turn to manage the toxic assets that they took over from Bear Stearns?
Blackrock.
And in 2020, who did J. Powell/Fed turn to when he wanted to start buying some corporate bonds to help backstop the economy?
Blackrock.
and this is where it gets interesting, guess who the FDIC came to wind down the portfolios of Signature and Silicon Valley Bank?
Blackrock.
So, as @EricBalchunas rightly points out, Blackrock filing for a Bitcoin spot ETF *is* a big deal. What does the firm think about Digital Assets more generally?
Look no further than page 19 of their Annual Report.
Blackrock has identified a few things that are interesting to them, but especially Tokenisation of RWA including stocks and bonds!
Remember this is the bloke who bet big and won big on debt securitization - i.e. he fully gets the power of financial innovation (especially wrapping stuff up) and the potential thereof for new products, capital efficiency, cost advantages etc.
but this is not Blackrock's only stance within crypto. They have also put their money where their mouth is and together with Fidelity and a few others invested $400mm into Circle.
and Jeremy loves him back since Circle uses Blackrock to help them manage a portion of their reserves (fees galore!)
What is super interesting to me is that they chose to use Coinbase as the custodian for the spot bitcoin ETF - i.e. a company in the crosshairs of the SEC. They could have gone with the safe option of BNY Mellon, USA's oldest and most trusted bank. Below news was big at the time.
But then again is it really a suprise? Blackrock has its fingers in a few pies with Coinbase already. e.g. the Aladdin network partnership.
You CAN quote me on this - Aladdin is to Blackrock, what AWS is to Amazon.
Clearly there are a few moving parts here. The powers that be don't want spot bitcoin flow to be dominated by @cz_binance, or to have a powerful holder of US Government debt and Bitcoin like Tether. The weak part of the USDT daisy chain is the exchanges that use it for trading
On reflection, this is a coordinated approach to be the owners over the flow and fees generated by $BTC trading. It may get rejected the first time, the ETF approval may get delayed, but one thing is for certain - they are licking their lips.
Kucoin going mandatory kyc! u.s customers are fucked.
The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin's suite of products and services, the firm said.Jun 28, 2023
Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.
The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin's suite of products and services, the firm said.Jun 28, 2023
Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.
Redirect Notice
www.google.com
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Kucoin going mandatory kyc! u.s customers are fucked.
The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin's suite of products and services, the firm said.Jun 28, 2023
Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.
Redirect Notice
www.google.com
Welp, it was a fun 6 years. Sick of having my information trusted with these places because of 'muh money laundering' KYC bullshit. Crazy how citizens of other countries got more financial freedom than U.S. citizens. Between KYC and places not even wanting to deal with us, Americans are forced to take other routes.
Since most of the U.S. has become politically insane, I don't think they will get what is going on here. The guy who is basically responsible for ESG is now pushing bitcoin/crypto hard. Now, many who have gone politically insane on a certain side hate bitcoin/crypto but love ESG. Some of the politically insane on the other side don't like ESG, but like bitcoin(may or may not like crypto).
I'll just
and see how it plays out.
Winklevoss Twins File Suit Over Their Crypto Lending Disaster
They accuse fellow crypto tycoon Barry Silbert and his company of engaging in a massive fraud.
www.thedailybeast.com
Crypto Biz: Winklevoss slams Silbert, Twitter’s double-edged sword and more
Twitter’s plans to roll out a payment platform took a major step forward this week as its subsidiary, Twitter Payments, received its first money transmitter licenses in the United States.
cointelegraph.com
Subscribe to read | Financial Times
News, analysis and comment from the Financial Times, the worldʼs leading global business publication
Winklevoss Twins’ Gemini Sues Crypto Conglomerate DCG, Citing Fraud
Gemini Trust Co., the digital-asset exchange founded by the billionaire Winklevoss brothers, filed a lawsuit against Digital Currency Group Inc. and its chief executive officer Barry Silbert, alleging “fraud and deception” stemming from a failed lending venture between the two firms.
www.bloomberg.com
I guess crypto is a scam huh lol
Borrow against your Bitcoin in a non-custodial, decentralized manner for 0% interest with 5% origination fee.
Only drawback is you have to keep a crazy high collateralization ratio (over 320%) to keep your Bitcoin safe.
But as the price rises, it becomes easier and easier to HODL Bitcoin while spending "dollars" minted from those holdings.
See for yourself at Sovryn.app
And YES, I have a bag so DYOR....
I've been doing extensive research. I will post some super GEMS soon
I'm 90% sure they will make some millions
I'm 90% sure they will make some millions
Kucoin going mandatory kyc! u.s customers are fucked.
The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin's suite of products and services, the firm said.Jun 28, 2023
Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.
Redirect Notice
www.google.com
Fucked up shit is the US is not even supported at all....
Download Metamask and rock with that or make your deposits NOW
and invest in tokens on the platform going forward
this is how the wealthy wage war on the masses, they create rules for us, while there are no
rules for them.... they are begging for a pushback...be careful with Metamask too, I
think its been compromised....
Nah, they haven't been hacked
MetaMask denies claims of wallet exploit in ‘massive’ $10M hack
MetaMask shut down a claim that an exploit of its crypto wallet resulted in a “massive wallet-draining operation” of over $10 million.
cointelegraph.com
People do get hacked from synching their wallets to the wrong sites.
They stole my friends tokens like that.
If ANY site tells you to enter your password it's a FAKE sync/connect
Then the victims turn around and blame Metamask
Ripple won it's lawsuit. Price going NUTS and so is all of crypto....BIG NEWS
Breaking: Ripple wins case against SEC as judge rules XRP is not a security
cointelegraph.com
Breaking: Ripple wins case against SEC as judge rules XRP is not a security
Breaking: Judge rules XRP is not a security in SEC's case against Ripple
The SEC's case against Ripple has resulted in summary judgement in favor of Ripple Labs stating that XRP is not a security.
cointelegraph.com
Ripple won it's lawsuit. Price going NUTS and so is all of crypto....BIG NEWS
Breaking: Ripple wins case against SEC as judge rules XRP is not a security
Breaking: Judge rules XRP is not a security in SEC's case against Ripple
The SEC's case against Ripple has resulted in summary judgement in favor of Ripple Labs stating that XRP is not a security.
Told you my fellow crypto kings, that south korea saying LUNA was NOT a security was BIG,
and just a matter of time before it catchs on....
corporate cunts who was hating on bitcoin KNEW this was coming thats why they started
scooping up bitcoin..and still going at exchanges pushing that pussy ass KYC in addition to making
crypto hard as fuck for the average American crypto investor.....
Nah, they haven't been hacked
MetaMask denies claims of wallet exploit in ‘massive’ $10M hack
MetaMask shut down a claim that an exploit of its crypto wallet resulted in a “massive wallet-draining operation” of over $10 million.
People do get hacked from synching their wallets to the wrong sites.
They stole my friends tokens like that.
If ANY site tells you to enter your password it's a FAKE sync/connect
Then the victims turn around and blame Metamask
Good to know.. yea lots of fake ass swap sites, especially for eth... I still think Metamask
should do a better job with security... but its good to know the fuckery is not coming
from their end...
Shit, $XRP... Let's go. Time to feel like it's 2017. Let's hit $3.
Democrats, SEC, and shills alike are mad as fu$k at this ruling.
They do, they have a built in feature you can turn on that tells you if a site is fake
BUT it has to be reported first and needs to be turned on. So it won't be for every site
Listen, don't give ANY one your password (change it every 3 months) or key phrase and you'll be fine
Problem is you have people who are new in this space getting scammed
You know how many DM's I got telling me I had to sync my Metamask wallet
in order to get my coins off of Voyager? Its crazy.
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Ripple won it's lawsuit. Price going NUTS and so is all of crypto....BIG NEWS
Breaking: Ripple wins case against SEC as judge rules XRP is not a security
Breaking: Judge rules XRP is not a security in SEC's case against Ripple
The SEC's case against Ripple has resulted in summary judgement in favor of Ripple Labs stating that XRP is not a security.
