A fool and his money are lucky enough to get together in the first placeComments
This is an amusing story about two finance bros who started a Singapore-based Crypto investment firm that went belly up before they were able to take possession of their $150 million superyacht, after which they went into hiding. How were they able to raise a trillion or so worth of capital to piss away? Here is the incredibly sophisticated theory they were able to build up major Twitter followings and con investors with:
Zhu gained his 570,000-strong following in part by promoting his theory of a cryptocurrency “supercycle” — the idea of a yearslong bull market for bitcoin with prices rising well into the millions of dollars per coin. “As crypto supercycle continues, there will be more and more people trying to larp how early they were,” Zhu tweeted last year. “Only thing that matters is how many coins you have now. Either you own the % of the key networks you should or you don’t. Being early and low conviction is gross tbh.” And: “As the supercycle continues, buttsore mainstream media will try to talk about how the early whales own everything. The richest ppl in crypto now had near-zero net worth in 2019. I know ppl who unironically say if someone had lent them $50k more back then theyd have $500m more now.” Zhu hammered the point constantly on the platform and in his appearances on crypto podcasts and video shows: Buy, buy, buy now, and the supercycle will make you insanely rich someday.
In late May, Zhu sent out a tweet that may as well be his epitaph: “Supercycle price thesis was regrettably wrong.” Still, he and Davies played it cool as they called up seemingly every wealthy crypto investor they knew, asking to borrow large quantities of bitcoin and offering the same hefty interest rates the firm always had. “They were clearly pumping their prowess as a crypto hedge fund after they already knew they were in trouble,” says someone close to one of the biggest lenders. In reality, Three Arrows was scrounging for funds just to pay its other lenders back. “It was robbing Peter to pay Paul,” says Castle Island’s Walsh. In the middle of June, a month after luna’s collapse, Davies told Charles McGarraugh, chief strategy officer at Blockchain.com, that he was trying to get a 5,000 bitcoin loan — then worth about $125 million — from Genesis to give to yet another lender to avoid liquidating its positions.
So the theory is that…you should buy crypto because it will consistently go up in value for years. That’s the theory. What could possibly go wrong!
Anyway, maybe the supercycle didn’t pan out. But I am here to tell you that LOOMCOIN is about to enter a megaspincycle. We can guarantee with complete certainly that it will appreciate 100% per month until the head death of the universe. Your friends and family may tell you you’re dumb for buying it, but ask them how they feel when you’re making the payments on their IMAX-equipped superyacht! You can get in on the ground floor for a mere 30% commission. $10,000 minimum investment. Don’t miss the megaspincycle!