Founders of $10B Crypto Hedge Fund Have ‘Ghosted’ After Bets Go Bad

Founders of $10B Crypto Hedge Fund Have ‘Ghosted’ After Bets Go Bad(vice.com)

37 points by jriot 3 years ago | 9 comments

In "Liar's Poker" (1998), iirc, this was called an Argentine Put. You'd place a big trade at the end of a day, fly to Argentina that night, and check the newspaper the next day to find out whether you were rich or a fugitive.

randomhodler84 3 years ago | |

Ha! Love it. Plan X (for escape), Long Argentine Puts

baxtr 3 years ago |

“Smart men go broke three ways - liquor, ladies and leverage.” - Charlie Munger

puranjay 3 years ago | |

Absolutely baffling how they managed to lose this money.

Zhu Su, one of the co-founders, would talk about the Bitcoin “supercycle” so much that people started calling it “zhupercycle”

Now it appears that they actually drank their own kool aid and went long when market was crashing.

randomhodler84 3 years ago | | |

It’s all a bit self actualizing. Terra Luna failure was a core issue in the unwinding.

The solution is not less 3ac’s but more, so inevitable unwinding does not take out all the players.

puranjay 3 years ago |

This is massive honestly. They were likely $18B. And by most accounts, they were almost entirely trading their own capital.

They were well liked and respected in the industry, having built up their fortunes trading over the years.

A little like Ray Dalio being on the run.

randomhodler84 3 years ago | |

Not that big and not all their own capital. It’s the treasury management and VC investment in new projects that could be of concern.

TaylorGood 3 years ago | | |

^ this. Feels like this shoe really hasn't dropped yet, just mentioned on Twitter in a thread or two. Overall this is the most shaken I've been in the crypto space in a long time; this last week or two. The unwinding of giant firms is behavior of degens, not institutions. Add bear already + macro economic / political issues, and crypto thus far has blown it proving "drought tolerant" to the world around it. I'm still long on blockchain, but right now doesn't feel so great.