On a podcast, FTX CEO Sam Bankman-Fried says calling crypto “yield-farming”, where coins are staked for interest, a “Ponzi” is a “pretty reasonable response”
Sam Bankman-Fried describes explains “yield-farming” to Bloomberg. — Honk honk! Source: Bloomberg . Tweets: @wallstcynic , @katie_martin_fx , @cavandy , @emilyjnicolle , @tracyalloway , @katie_martin_fx , @bc_trevor , @quantian1 , @matt_levine , @fxmacro , @degenspartan , @blackamazon , @thestalwart , @thestalwart , @concodanomics , @jamessurowiecki , @davidgura , @robinwigg , @maxwellstrachan , @robinwigg , @ajb_powell , @wallstcynic , @wallstcynic , @realpauleverton , and @silvermanjacob Source: Bloomberg : Sam Bankman-Fried Described Yield Farming and Left Matt Levine Stunned Tweets: @wallstcynic : Podcast: Sam Bankman-Fried Described Yield Farming and Left @matt_levine Stunned | Please read this crypto luminary explain “yield farming”. He is literally describing a Ponzi scheme. There is no economic engine. #GoldenAgeOfFraud https://www.bloomberg.com/... Katie Martin / @katie_martin_fx : ML: “You're just like, well, I'm in the Ponzi business and it's pretty good.” SBF: “on the one hand, I think that's a pretty reasonable response ... That's one framing of this. And I think there's like a sort of depressing amount of validity...” https://twitter.com/... @cavandy : Sam Bankman-Fried Described Yield Farming and Left Matt Levine Stunned “This box is worth zero obviously” #crypto #web3 https://www.bloomberg.com/... https://twitter.com/... Emily Nicolle / @emilyjnicolle : in which SBF argues that crypto skeptics are actually right about most of DeFi being a ponzi, but what does it matter if most people end up making money from it? https://www.bloomberg.com/... Tracy Alloway / @tracyalloway : New Odd Lots! @TheStalwart and I reunited @SBF_FTX and @matt_levine to talk about how to make money in crypto right now. At one point, Matt asked Sam to describe how yield-farming works. Here's what happened next. https://www.bloomberg.com/... Katie Martin / @katie_martin_fx : “I think that's a pretty reasonable response” sorry what now? https://twitter.com/... @bc_trevor : A product should try to generate value for everybody who invests in it, not “most people.” A ponzi scheme, where a “product” serves early investors at the expense of late investors, does not generate value. It is fraud. And being okay with this is fucked up. https://twitter.com/... @quantian1 : This interview is SBF straight up saying “Crypto may be a Ponzi scheme, but it also made me a zillionaire so, it;s impossible to say if its bad or not,” Wild. https://twitter.com/... https://twitter.com/... Matt Levine / @matt_levine : in non-elon news this was very fun https://twitter.com/... @fxmacro : when crypto tanks everything is a box... https://twitter.com/... @degenspartan : listening to it on spotify as background white noise until i heard sam said we gonna 10x and i perked up kek bullish on me getting scammed into the upper echelons of revanchist epochal wealth over this decade https://twitter.com/... @blackamazon : As long as the “right people” make money it's fine , and it's even better if the wrong folks suffer greatly https://twitter.com/... Joe Weisenthal / @thestalwart : NEW ODD LOTS: By popular demand, it's a return appearance from @SBF_FTX and @matt_levine. The pair joined me and @tracyalloway to talk about how people are making money trading crypto. On Apple: https://podcasts.apple.com/... On Spotify: https://open.spotify.com/... + anywhere else Joe Weisenthal / @thestalwart : We discussed: - The wall of money entering the space - the challenge of deploying it - how yield farming works (you'll want to hear this) - algorithmic stablecoins - FOMO in everything - and more @concodanomics : “Yield farming” is doublespeak for the early Ponzi schemes that bad actors used to operate in early Bitcoin forums. It's a total fugazi. James Surowiecki / @jamessurowiecki : Remarkable conversation. Matt Levine asks Sam Bankman-Fried - who founded a cryptocurrency exchange worth $30+ billion - to explain why yield farming works, and SBF gives a long explanation that amounts to saying it's Ponzi schemes all the way down. https://twitter.com/... David Gura / @davidgura : An observation from @TheStalwart, on #crypto, from his morning newsletter: “It's hard to think of anything comparable, where so much money has been made, with so little having been delivered.” Robin Wigglesworth / @robinwigg : @SBF_FTX https://twitter.com/... Maxwell / @maxwellstrachan : Pretty incredible: Crypto billionaire Sam Bankman-Fried (@SBF_FTX) accidentally describes a crypto Ponzi scheme while speaking with @TheStalwart and @matt_levine https://www.ft.com/... https://twitter.com/... Robin Wigglesworth / @robinwigg : That @SBF_FTX interview with Bloomberg is quite... something. Basically comes out and says, well yes the whole yield farming thing is a big fat Ponzi. https://www.ft.com/... Jamie Powell / @ajb_powell : this guy is meant to be one of the smartest in crypto. his company is worth $36bn and sponsors several high level sports events and teams. i mean what https://twitter.com/... @wallstcynic : (3) I'm beginning to think there may be a reason why all these crypto CEO's reside offshore. @wallstcynic : (2) This exchange says it all @matt_levine @TheStalwart @tracyalloway https://twitter.com/... Paul Everton / @realpauleverton : He means “what does it matter if me an my whale friends end up making money”? https://twitter.com/... Jacob Silverman / @silvermanjacob : This has become almost established wisdom in crypto: yeah it's a bunch of ponzis, but some are more legit than others, and maybe we can just keep the plates spinning for a while until everything is somehow legitimized. https://twitter.com/...