Unchained The Chopping Block: A Rough Week 3 for SBF, DCG Troubles, Fees at Uniswap - Ep. 559
Oct 21, 2023
The latest discussion dives into the ongoing drama of Sam Bankman-Fried's trial, highlighting key testimonies and frustrations. The hosts debate Uniswap's controversial new fee structure, pondering its potential impact on trading volume. They also explore the legal entanglements surrounding DCG and its resemblance to historical empires. Expect insights into courtroom journalism's evolution and the pressing question of how decentralized platforms can monetize their innovations amid a shifting landscape.
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FTX's Flawed Risk Model
- FTX's cross-collateral risk model, a key selling point, was revealed as flawed.
- Alameda Research absorbed losses directly instead of proper liquidation, acting like a "Ponzi scheme for trading firms."
NYAG Lawsuit and DCG's Downfall
- NYAG's lawsuit against DCG, Genesis, and Gemini alleges fraud, claiming Gemini misrepresented Genesis loans.
- DCG's alleged use of a promissory note instead of covering losses is "brutal."
DCG's Empire Crumbles
- DCG's decline, from industry pillar to potential collapse, mirrors the Roman Empire's fall.
- Grayscale, a DCG cash cow, faces fee reduction with a likely Bitcoin ETF approval.