Shorting the Crypto market

[RedDuke]

Hello, @DallasCowboysFan.

As @sebking1986 correctly said, you can short Bitcoin and other cryptos with a crypto derivatives broker, such as yours truly, CryptoAltum.

Feel free to ask any questions or contact our 24/7 support team (support@cryptoaltum.com).

I am very much interested into being able to short crypto (not at the moment of course ). How can I be confident, I will be able to collect with you if I happen to be right????

For example, if I buy a put at Interactive Brokers, I know that close to 100% I will collect.

 

[Laissez Faire]

Tethers are fake money that are treated in crypto world as if it is USD. They were created around 2014, and for years lied that every tether they release into circulation is represented by 1 USD in their bank account. Once this fraud was exposed, they new lie is that they are backed by some commercial papers, and reality they only have a 3% of cash to represent 70+ billions they printed.

This is where it gets interesting, with 70 billions they would be within top 10 commercial paper holders in the world, however not a single commercial paper desk (and it is small group where everyone know each other) have ever seen them trading a single commercial paper.

And this fake shit represents 70% of crypto daily volume.

Essentially they behave like "Crypto Fed" and just print fake money to push Cryptos ever higher. most were printed over last year pushing crypto to ridiculous levels. They back to minting a billion every few days again.

Here are just few articles, there are tons of others:

https://www.bloomberg.com/news/feat...-the-69-billion-backing-the-stablecoin-tether

https://hindenburgresearch.com/tether/

Now ask yourself, why would anyone short such market, where fake money keep pushing market cap ever higher??????????

Where it gets sad for me personally, is that knowing the above, I thought they would be shut down any day, and this would absolutely crash Crypto market, and this is what kept me from inventing into it. Oh well. They recently had to pay measly 41 million for lies around 2016, imagine how empowered they are now.

Very interesting. And you know all this for a fact, i.e., tether being 70% of daily crypto volume? And not just bidding the market higher, but supporting it? With the latter I mean - would crypto collapse without this support like you suggest? Or would it simply become less manipulated (higher)?

I need to study up on this. Thanks for those links.

PS: What do the pro-crypto guys have to say about this?

 

[CryptoAltum]

Hi @RedDuke,

We have a 100% order execution track record for market and pending orders.

We say to allow 24 hours for a withdrawal, but we are actually much quicker than this, usually 1-2 hours.

There are no expiry dates on positions, they can be left open for as long as you like.

We hope this answers your question...

 

[RedDuke]

Very interesting. And you know all this for a fact, i.e., tether being 70% of daily crypto volume? And not just bidding the market higher, but supporting it? With the latter I mean - would crypto collapse without this support like you suggest? Or would it simply become less manipulated (higher)?

I need to study up on this. Thanks for those links.

PS: What do the pro-crypto guys have to say about this?

Yep, daily volume can be looked up, and USDT (tethers) are the bulk of it.

They say it is a FUD.

My assumptions, if tethers are exposed and banned and other stable coins are properly audited, this will collapse the market.

Just look at yield farming, you getting interest that beats Jim Simon's RenTech performance by just staking your crypto in liquidity pool Life is amazing in crypto land.

 

[RedDuke]

Hi @RedDuke,

We have a 100% order execution track record for market and pending orders.

We say to allow 24 hours for a withdrawal, but we are actually much quicker than this, usually 1-2 hours.

There are no expiry dates on positions, they can be left open for as long as you like.

We hope this answers your question...

Do you publish where you hold customer funds, and how they are segregated? My issue when shit hits the fan, will those who shorted be able to collect.

 

[CryptoAltum]

Thanks for clarifying @RedDuke.

We only accept deposits in cryptocurrencies, and they are primarily held in cold storage, with a small % held online to process client withdrawals quickly. Client funds are not mixed with company own funds.

Although we are not supervised by a regulatory body, we still operate using the same guidelines and maintain the same capital adequacy that we would be required to if we were. This ensures that if we pursue regulation, the company is well established to do so.

 

[johnarb]

I have 5 MSTR Jan 750 Call options that cost me ~$50K (first 2 cost me a total of $31K last 3 cost me a total of $17K)

I have put my money where my mouth is as far as my opinion that MSTR will go up a lot due to bitcoin going up a lot in the next 2 months or so

The 5 options are worth almost $100K if I sell now

Fuck it, I'm going back to sleep. Let it ride! I wanna sell when the 5 options are worth a lot more

[Pride goeth before the fall - It's a bull market, I'm no genius]

 

[Dutchy1986]

If I thought that cryptos might be facing a steep decline before the end of the year, what is the best way to play it?

Are there any option plays I can use against an ETF or something from the Comex?

I’m not sure they are going to dip that much until early next year

 

[Trader Curt]

Very interesting. And you know all this for a fact, i.e., tether being 70% of daily crypto volume? And not just bidding the market higher, but supporting it? With the latter I mean - would crypto collapse without this support like you suggest? Or would it simply become less manipulated (higher)?

I need to study up on this. Thanks for those links.

PS: What do the pro-crypto guys have to say about this?

Eh, RedDuke may be right a little bit. But is RedDuke an expert? Or is he repeating someone else's news? Yeah, tethers may be printed out of thin air, but is that the only way to buy or sell Bitcoin? There are 5 other stable coins including the US dollar that make up the market, but he seems to think tether can bring down the whole crypto market.

We just had a flash crash and Bitcoin went to 8000, how come that didn't crash the market?

RedDuke also has crypto holdings, why isn't he following his own beliefs?

See when people tell you these things, just know that nobody knows what is going on in the crypto markets. All we know is the news, and our gut instincts that tell us there is a better way to manage our money besides control from higher powers.

You do your own research and if you don't agree with Blockchain technology, then just stay out of it

 

[Laissez Faire]

We just had a flash crash and Bitcoin went to 8000, how come that didn't crash the market?

I don't know, but that's a separate issue.

If tether is indeed being printed out of thin air it goes without saying that this could artificially inflate the market. But I don't know enough about this issue to say anything meaningful about it.

I'm actually listening through a podcast where this exact issue was brought up as a potential risk by a guy who is pro-crypto.

You do your own research and if you don't agree with Blockchain technology, then just stay out of it

You do seem a bit uncritical.

I'm planning to invest in cryptocurrencies shortly. Better late than never. But that doesn't mean I need to accept everything about this market at face value, nor ignore the potential risks in this system.