Coffeezilla
1 HN recommender · recommended in 5 months, 2022–2023
8:09 · 3.3M views · Apr 26, 2022
Coffeezilla reacts to Sam Bankman-Fried's explanation of yield farming on the Odd Lots podcast, arguing he effectively described a Ponzi scheme. The video was made well before FTX collapsed.
After the FTX collapse, commenters cited it as an early red flag, though others disliked the YouTuber's style.
12 comments from Hacker News
The best video I've seen is SBF basically admitting it was a ponzi scheme: this video Selling something with no value other than the attention it gets on Twitter and the reputation it gets via reputable investors. What gets 'reputable investors' to invest in the scheme is the most interesting part of this story, if you at all care about stopping it. Something that has existed long before crypto.
Pretty unfair to CZ. FTX was using FTT as an infinite money glitch. Why would CZ hold a coin that has a strong likelihood of going to 0? [LINK] The balance sheet showed billions of dollars in assets for coins that had tens of millions in liquidity. There's an 8 billion dollar hole in the balance sheet. It's pretty clear they used customer deposits to pay back lenders. Why would CZ buy a company that's nearly an Enron level fraud, and due for a criminal investigation. [LINK] SBF describes coins like a ponzi with no shame this video This was Alameda CEO [LINK] [LINK] Meanwhile, after 1 - 2bn in customer funds are missing. Everyone is asking Sam to say what happened. Sam proceeds to troll by writing the words "What happened" one letter at a time, with an Elizabeth Holmes-like legal disclaimer that he's not going to recall any of the details.
Based on this this video it wasn't even anywhere near that well thought out with SBF. He behaves like a child when asked simple questions about crypto, trying to use double speak to weasel his way out but not even the way a typical CEO or politician might do it. I think SBF's trick was to just demonize regular finance and to treat all criticism as simply FUD. IIRC they also paid influencers a pretty penny to promote them. It's an extremely common tactic in crypto, basically every crypto scam covered on that channel involves a similar cult of personality being setup as a cover for the scam.
What do you make of Sam Bankman-Fried describing his business as a literal Ponzi scheme on Odd Lots podcast? The commentary isn’t necessary to see the insanity but here’s fastest way to get to the relevant content: this video Edit: To clarify, though not sure how much a mitigation this is, yes SBF is describing much of the underlying activity he takes commission on as a Ponzi scheme. Sure, he’s not operating the Ponzi itself, just keeping it operational and profiting from its continued operation. Mea culpa.
SBF just played along with the sheer insanity of the concept of crypto (nothing can make nothing) and all the fools who gave him money - it seems that common financial sense is not taught to people anymore or is really in short supply these days. Did people actually listen to him whenever he spoke - whenever did any of his BS make any financial sense ???. this video