Someone bought $3,400 worth of SHIB last August. It’s now worth $1.55 billion

[RedDuke]

you obviously are not familiar with how the banking system works

even $1m transfer will raise all kind of alarm bells for compliance,

and compliance for offshore and LPs are even more under scrutiny, you will be asked for a ton of paperwork that you probably don't even have hence you will be fucked

that's the problem with all those cryptos, they are stuck in their games, and can't cash out, so they do the music chair with other cryptos thinking they can't get away with it

let's see how long the music can play LOL

Cashing out is a very interesting question. Technically it is no issue. But once coinbase wires you few millions how will it all play out in real world. Would be very interesting to hear from someone who did it.

 

[Snarkhund]

I don't get the argument... there is nothing illicit about crypto earnings and transferring to your bank account. What the hang-up?

One million per day withdrawal limit for us regular folks... generally.

So yeah it would take some work but that is the right kind of problem to have.

 

[Clubber Lang]

you obviously are not familiar with how the banking system works even $1m transfer will raise all kind of alarm bells for compliance

Huh?? This is completely not true.

 

[johnarb]

Like I said, $500M for professional investment managers is small shit, but big for small traders

lol, Shiba Inu is not an investment, it's a meme coin

 

[johnarb]

Cashing out is a very interesting question. Technically it is no issue. But once coinbase wires you few millions how will it all play out in real world. Would be very interesting to hear from someone who did it.

That's why I mentioned contacting lawyers and CPA's, that would be an interesting, but fun problem to have

I cashed out over $500K and wired to several bank accounts, only one bank contacted me and after a few questions, case was closed. I never lost access and still actively use the account

In retrospect, I think it would have been ok to leave the bulk of the cash in Coinbase, Kraken, and Gemini instead of wiring to the banks. Those guys are more than comfortable dealing with cryptos

Anyway, if it was me, I'd trade the $500M worth of Shibu to btc, eth, and stablecoins and spread the crypto digital assets in Fidelity, Coinbase Prime and Gemini accounts for safe storage. Only a few million $ in cash but leave at the exchanges

One of the advantages of crypto digital assets is the ability to self-custody and transfer anywhere, can't do with other assets, even that much physical gold would be a problem

 

[virtusa]

Huh?? This is completely not true.

The amount is not the problem. The proof of origin of the money is.

 

[yc47ib]

It's the same wallet. It has not made any transfers out for close to 200 days. Sadly, he/she may have lost the private key or the person may have died. People are sending coins to the address to get noticed

Someone on Twitter posted an Ethereum wallet address that has 100 crypto punks (could be worth over $100M) that has been inactive for a couple of years

It's nearly impossible to be this diamond handed as crypto is extremely volatile more so on these types of coins

There's a study the best performing accounts on Fidelity are of the ones the owners died

At the very least, it would make sense to cash out a few million $ worth when Shib first pumped

Ethereum address 0x1406899696adb2fa7a95ea68e80d4f9c82fcdedd

https://etherscan.io/token/0x95aD61...?a=0x1406899696adb2fa7a95ea68e80d4f9c82fcdedd

 

[NoahA]

Cashing out is a very interesting question. Technically it is no issue. But once coinbase wires you few millions how will it all play out in real world. Would be very interesting to hear from someone who did it.

I wonder what will happen when this so called cypto cycle ends. I've seen Raoul Pal say that he thinks its different this time because so many people are just getting in, so it won't peak for a while, but when it does, the values we are dealing with are much larger compared to the last time in 2017.

So for example, if people start exiting BTC and ETH, the big guys, and also at the same time the alt coins, will they all try and rush into USD or the stable coins? Is there going to be enough liquidity for this?

I honestly don't understand exactly where Coinbase for example gets their cash from, other than customer deposits. But if everyone wants USD all of a sudden, they will need more USD, so where do they get it from?

Likewise, if people want to convert to stablecoins, and increase the market cap of USDT from like 70B to 300B or whatever, since a few hundred billion will start flowing into the stable coins, where will this cash come from? Its not like the company behind tether will have more cash deposits to mint more USDT. This time, they will need to mint more USDT from BTC, which will be dropping in value against the USD, so how the peg will be maintained I don't know.

In March of 2020, when BTC hit a low of 4k, the market was much, much smaller, but when this cycle ends, it will be so much bigger, and I'm not sure many people will want to sit through an 80% drawdown. Perhaps it can't even drop that much this time around as there will always be more buyers to take whatever is being sold.

 

[NoahA]

I should follow-up and say that I am of course very bullish on crypto now, so I'm just trying to workout the scenario in my head. I do think lots of alt coins might go through a crash, but not BTC. If it ever came down to 30k again, I would happily buy more, and I think many are in this boat, so perhaps it never will.

My feeling is that ETH has stupid gas fees, and its only because of so much development that its popular. People selling NFTs for many ETH don't maybe care about the gas fees, but its silly to actually use it. When I tried to transfer USDT, I was shocked by the fee and used a different coin. So until this ETH2.0, its a no go in my opinion, and by then, another coin can easily replace it.

So how the crypto market looks a year from now, I don't know, but it will absolutely be here. So this crypto winter just might not happen. Maybe the crypto winter this time around will be everyone rushing from the alt coins into BTC or the top 2 or 3.

If the drop this time around is simply people wanting to buy at a lower price, they might just not get the chance since it never will drop. Given how the government is spending so much money, going to USD might be the dumbest move, and by extension, going into the stable coins as well. When we hit the low of 4k in March 2020, this was before the crazy stimulus. Once they started printing and crypto took off, the buying was maybe for a different reason, not just belief in crypto, but as an inflation hedge. So this time around, the cycle might not really cause price to drop because the inflation hedge as a reason will be even stronger going forward.

 

[johnarb]

I wonder what will happen when this so called cypto cycle ends. I've seen Raoul Pal say that he thinks its different this time because so many people are just getting in, so it won't peak for a while, but when it does, the values we are dealing with are much larger compared to the last time in 2017.

So for example, if people start exiting BTC and ETH, the big guys, and also at the same time the alt coins, will they all try and rush into USD or the stable coins? Is there going to be enough liquidity for this?

I honestly don't understand exactly where Coinbase for example gets their cash from, other than customer deposits. But if everyone wants USD all of a sudden, they will need more USD, so where do they get it from?

Likewise, if people want to convert to stablecoins, and increase the market cap of USDT from like 70B to 300B or whatever, since a few hundred billion will start flowing into the stable coins, where will this cash come from? Its not like the company behind tether will have more cash deposits to mint more USDT. This time, they will need to mint more USDT from BTC, which will be dropping in value against the USD, so how the peg will be maintained I don't know.

I've seen the 2 previous bull market cycles end 2014 and 2018 and it's not a quick dash for the USD exit. The bear market is a slow grind down over the course of ~3 years from peak to through of over 85% on btc alone with many alts down over 95%

There were fake (bear) market rallies during those years. It's a slow grind to the bottom

Coinbase is an exchange so they don't care, they'll start selling lower and lower as more sellers than buyers. CB collects the fees

USDT can only be printed through fiat deposits from qualified customers. If there's too much demand for USDT, I suppose it can trade higher than $1 which has happened in the last bear market, I think it traded as high as $1.06 (edited)

USDT has also traded as low as 85 cents during the Bitfinex hack incident

It's going to be an exciting time once we get a parabolic top, lots of people (including me) want to cash out enough so we'll have dry powder to buy cheap (which probably means it's not going to happen)