“Three Arrows Gives Crypto Another Try” Know Full News – Very Useful

Three Arrows Gives Crypto Another Try”: Three Arrows is taking another shot at the crypto market. Find out what this means for you.

Three Arrows Gives Crypto Another Try

In the world of crypto, it is possible to borrow money against collateral that is considered extremely risky or even transparently worthless.

Sam Bankman-Fried, a crypto expert, said in a podcast that you can “build a box and issue tokens from the box and ‘put [the] token in a borrow lending protocol and borrow dollars with it'” and “never, you know, have to worry about the underlying asset.” This makes crypto a very interesting and unique financial tool.

Three Arrows Gives Crypto Another Try
Three Arrows Gives Crypto Another Try

And we have talked about how Bankman-Fried’s FTX crypto exchange did more or less exactly that, borrowing billions of dollars of customer money against its stash of made-up tokens and not giving the money back.

And we have talked about how Kyle Davies, one of the founders of crypto trading firm Three Arrows Capital, or 3AC, convinced people to lend him hundreds of millions of dollars to do crypto “arbitrage” trades. These trades were just buying speculative tokens of new crypto ico projects and then selling them immediately for a tiny profit.

The innovations in 3AC’s business model were:

  • Calling wildly risky venture-type investments “arbitrages,” so that lenders would assume they were safe, and
  • Finding some really gullible lenders.

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