Maybe something big is brewing when one of the main casino's spot arb starts to get seriously outta wack like way back?
ELI5: How is the spot arb getting out of whack? Is someone doing something? What are they doing?
Paperization runs the risk of price discovering there are no bailouts: a covering willybot with current market dimensions could produce spectactular results
Could you elaborate on that?
No spreads are outta wack and this is merely a hypothetical scenario regarding paper games. If Mikey, "treasuries", etc exercise claims bigly (and if someone turns out to be playing), the price will go up where pockets of paper live unless they double down to compensate. Sadly, some folk are legally required to custody with scammers, so they'll eventually learn the hard way (or maybe not)? Such games would be easier if an entity knows a buyer in size cannot/will never withdraw a claim.
Also consider that if the gubmint/sec/cftc begin gynecologizing US-based exchanges, casino games they've been greenlit to run since and before "regulation through enforcement" would be in jeopardy, which would also have the effect of tamping down any back room naughtiness. Or maybe any vig would simply be paid differently or to an alternate party?
What's that you say? "Publicly traded company"..."CZ jailed"...Where's the
surveillance? Is BNB really so popular?
*Pure speculation for entertainment purposes onlyI'd be interested in researching this a bit more as we all know how the FTX situation ended for the market. If we're starting to see obvious cases of entities using paper Bitcoin and not being able to cover client holdings, it is time to say goodbye to the market for a couple years.
Would a repeat of the FTX scenario necessarily play out to the downside?