Is Swan Bitcoin about to go bankrupt \ stacker news ~bitcoin

97.5k sats \ 47 comments \ @DiracDelta 22 Jun 2023 bitcoin

Cory dismissed my post before, calling me "not a customer." ...I was a prospective customer of Prime Trust and had good reason for turning them down! #189598

Anyway, now it seems likely Prime Trust was rehypothecating and David Bailey has tweeted that there is a 3 month rehypothecation period, which Swan will fall into. I expect if these clawbacks happen, Swan will go bankrupt. https://twitter.com/DavidFBailey/status/1671876348007022595

Also, how did Swan do their emergency transfer to fortress unilaterally if it was supposed to be a trust with a firewall preventing movement of funds clients do not authorize? 🧐 Violates qualified custodian laws??

I think Strike has a better chance of surviving due to their more diversified operations and much higher valuation (I don't think anyone would fund reviving Swan).

GTFO NOW IF YOU STILL HAVE FUNDS LEFT ON SWAN... if Swan is honest, they should love this post since they claim they want people to self-custody. Though even if you do, you might still get sued for your bitcoin by shitcoiners and they might win if it was within 90 days.

I have been criticizing Swan for a long time and talking shit about them since they fucked over their customers with a trivial-to-avoid fuck up that screwed customers out of up to 10% of their funds over a several day period. https://bitcoinmagazine.com/markets/ftx-collapse-cause-huge-bitcoin-price-spike

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737 sats \ 12 replies \ @coryklippsten 22 Jun 2023 freebie

Michael you’re wrong on every point as usual. Man, you hold a grudge 😅 Saylor was a guest at our conference and I wouldn’t set up a meeting for you. Get over it.

For anyone new to Michael’s world, he’s literally walking anti-signal.

401 sats \ 6 replies \ @birdeye21 22 Jun 2023

Not here to take sides but

Looks like he's also pumping his anti-Swan posts artificially

40 sats \ 0 replies \ @k00b 22 Jun 2023

poxohu has 0 trust. They are the big spender here but he had ZERO effect on ranking. I'm not sure what they intended but the only effect of the zap was sending the reward pool 9400 sats and the op the rest.

It was the other 14 people zapping this that sent it to the top.

0 sats \ 4 replies \ @DiracDelta OP 22 Jun 2023

I already disclosed in another comment pumping a prior post. You're really reaching if you think I am using multiple wallets. 100k sats is exactly the opposite of what someone being sneaky would do.

I am broadly critical of bitcoin startups because of how important building tools that actually accelerate things is rather than squandering resources. I also criticize StackerNews for instance and VCs investing at $25m val, or synota or whatever Ln electric bill payments making absurd claims also getting a stupid valuation.

Like in the fiat world, stupid things outbid attention from smart things. If I were as accusatory as you, I might call you a Keynesian!

0 sats \ 3 replies \ @DiracDelta OP 22 Jun 2023

@k00b this is a pretty easy thing to fix. Just charge a 5% rake on zaps and it basically eliminates all possible manipulation, plus gives you a real revenue model so you are not running a charity project.

52 sats \ 2 replies \ @k00b 22 Jun 2023

We take 10% exactly for this reason
Even if you're willing to lose an infinity of money, the effect of zapping is weighted by your trust ... and gaining trust requires hard and consistent work that's difficult even if you're earnest.

0 sats \ 1 reply \ @DiracDelta OP 22 Jun 2023

Oh, I didn't know you take 10%, haha. Nice!

Can you explain the 2nd point more? You're saying there is a more complex algorithm that will weight more heavily zaps by certain accounts deemed as high status? Does that increase the Sybil resistance?

0 sats \ 0 replies \ @k00b 22 Jun 2023

Yes the effect of (2) is to increase sybil resistance by adding another "resistor."

174 sats \ 2 replies \ @DiracDelta OP 22 Jun 2023

My response:

0 sats \ 1 reply \ @alevu 25 Jun 2023

Evil background story revealed

0 sats \ 0 replies \ @DiracDelta OP 25 Jun 2023

It's evil to have a good reason to not be part of your circlejerk? Have fun being a tribal collectivist cuck.

34 sats \ 1 reply \ @energycurrency 22 Jun 2023

deleted by author

14 sats \ 0 replies \ @DiracDelta OP 22 Jun 2023

It's almost like not everyone is part of your little circlejerk, and no obviously that wasn't me pumping this post since there is no point to >10k or so to effectively pump. Also, it's not FUD if it's true, and I have praised Swan various times as well for their educational efforts.

1301 sats \ 2 replies \ @birdeye21 22 Jun 2023

Statement from Cory:

0 sats \ 1 reply \ @muteness11 22 Jun 2023

Any response from the creator of this post?

I personally do not care which one operates well and which one fails .... you should always treat exchanges as a public toilet ..... U WANT TO GET IN AND OUT AS FAST AS YOU CAN

0 sats \ 0 replies \ @DiracDelta OP 22 Jun 2023

I agree with David Bailey's follow up tweet that it is a complex situation. I was highlighting the situation and not trying to make definitive claims.

I think adding a bit of extra fear to help motivate people to self-custody is worthwhile. https://twitter.com/DavidFBailey/status/1671918278141267970

411 sats \ 0 replies \ @DiracDelta OP 22 Jun 2023

Update from David Bailey:

295 sats \ 0 replies \ @siggy47 22 Jun 2023

It took me 2 1/2 weeks, but my transaction finally went through a few days ago. Not a huge amount, but I'm glad I can cut ties.

276 sats \ 0 replies \ @sudonaka 22 Jun 2023

Swan can finally become an official media company 👍

176 sats \ 1 reply \ @birdeye21 22 Jun 2023

Swan is hosting a casual Coffee chat on Twitter spaces right now while all this is going on

8 sats \ 0 replies \ @DiracDelta OP 22 Jun 2023

They were casually hosting a conference during spreadgate. I crashed one of their parties and some of their clients were finding out from me for the first time what was going on.

243 sats \ 5 replies \ @RoundaboutStacker 22 Jun 2023

convince me this isn't a fedi performing a psyops in order to push a direction. They certainly do not have any interest in helping BR or the big gov.

53 sats \ 4 replies \ @DiracDelta OP 22 Jun 2023

Sure. Check my background and my newsletter and you'll get a sense of why I'm not the biggest Swan fan. https://heaviside.substack.com

Ask people who were at what I think was maybe the first beefsteak, June 2019 about me, or Nik Bhatia's early 2019 Lightning Carnivory dinner.

I don't expect anyone to simply trust me.

Swan is noise imo. They are too tiny for anyone to care one way or another at a high level. More often the nefarious conflict of interest would be the shitcoin operators that Cory goes after, which is also easy to disprove. Cory is more of a shitcoiner than I ever was -- he was giving talks pumping shitcoins and investing in shitcoin platforms before Swan. Why don't you convince me Swan + Saylor isn't a Fed op? MSTR 10 minutes from CIA HQ and Saylor & Swan sure seem to be close.

100 sats \ 3 replies \ @_b_o_n_e_s_ 22 Jun 2023

so if you dont trust saylor, why did you want to meet with him then?

0 sats \ 2 replies \ @DiracDelta OP 22 Jun 2023

So you believe in trusting people, or you just never talk to anyone, ever?

But to answer your question, it's called being a useful person, something you seem to know rather little about.

10 sats \ 1 reply \ @_b_o_n_e_s_ 23 Jun 2023

ok chief

0 sats \ 0 replies \ @DiracDelta OP 23 Jun 2023

Ok, trustoor, LARPer 🤡

201 sats \ 0 replies \ @phamtruax 22 Jun 2023

Always self custody, never trust a third party

201 sats \ 0 replies \ @Rsync25 22 Jun 2023

Not sounds good

53 sats \ 0 replies \ @4md4d 22 Jun 2023

Thanks for the reads

34 sats \ 2 replies \ @DiracDelta OP 22 Jun 2023

Here is a tweet indicating what appears to be Swan violating their terms of service in their emergency shift away from Prime Trust.

20 sats \ 1 reply \ @03bf779391 22 Jun 2023 freebie

Would it have really been better for Swan to have continued holding assets with prime trust rather than moves assets to a new custodian so customers could withdraw their BTC? Seems like a pretty bizarre thing to be upset about.

0 sats \ 0 replies \ @john_doe 23 Jun 2023

Just saying, I had 0BTC or dollar left before the move, now I have 0.00004937BTC or $1.48 displayed on my dashboard on Swan Bitcoin. So in my case I gained money with this operation.

30 sats \ 6 replies \ @0xBTC 22 Jun 2023

96.7k sats? Why?

0 sats \ 5 replies \ @DiracDelta OP 22 Jun 2023

Holy shit, I'm ngl, I pumped like 20k sats into my own posts couple weeks ago to make sure they got visibility with a 2nd account, but 0 on this one.

Thank you, kind stranger

30 sats \ 0 replies \ @ek 22 Jun 2023

You can use boost when creating posts for this exact purpose

No need to game the algorithm

21 sats \ 3 replies \ @faithandcredit 22 Jun 2023

why would you admit that. it only makes us more suspicious now

110 sats \ 1 reply \ @birdeye21 22 Jun 2023

that kind stranger looks to be @poxohu

a brand new account, weird

0 sats \ 0 replies \ @DiracDelta OP 22 Jun 2023

My guess is it's some shitcoiner who doesn't like Cory and is not active on Stacker News

0 sats \ 0 replies \ @DiracDelta OP 22 Jun 2023

Haven't you heard of the bitcoin-autism connection meme?

I wrote an entire newsletter post largely about bitcoin and autism.

Maybe you can take this as an opportunity to learn a bit more about it.

My prior post was not in question, so a nefarious actor would have to be pretty retarded to bring it up as the notion that by giving up a small piece of concealed data trust is gained would be a highly suboptimal tactic in this situation. https://heaviside.substack.com/p/bitcoin-autism-and-dabrowskis-theory

10 sats \ 0 replies \ @pepe78 22 Jun 2023

Who cares anymore

4 sats \ 1 reply \ @stackerjim 22 Jun 2023

Calm down bro

10 sats \ 0 replies \ @DiracDelta OP 22 Jun 2023

You don't know why I'm not calm (Chesterton's fence, my dude)... if they do go bankrupt or take a big hit regardless, I will write a newsletter post on why I feel a certain way about it.

0 sats \ 1 reply \ @Satoshis 23 Jun 2023

100000 Sats?

0 sats \ 0 replies \ @DiracDelta OP 23 Jun 2023

It's been discussed. See various comments here

0 sats \ 1 reply \ @TheBTCManual 22 Jun 2023

Let the market play out as it may, no company is too big or small to fail, as a user you just need to be comfortable with your exposure to any company

0 sats \ 0 replies \ @BitcoinIsTheFuture 23 Jun 2023

Yup self custody!