Over $1.2B in Bitcoin reserves remains unaccounted for by Luna Fdn. Guard | Hacker News Reader

Over $1.2B in Bitcoin reserves remains unaccounted for by Luna Fdn. Guard

theblockcrypto.com

70 pointsgennarro33 comments

The very first thing I though of when I heard about the bitcoin reserves was “that’s a great cover story to hide extracting more solid currency out of an obvious Ponzi scheme.” And low and behold it can’t be accounted for. This is my surprised face.

But they are supposed to be a non-profit!

I assure you the foundation won’t make a profit :-)

But those who setup the foundation will for sure make a profit.

It's been 2-3 days since the entire thing blew up. Nobody said "it can't be accounted for", they said it's not yet accounted for. They will for sure account for every single BTC, but they have been, you know, busy with trying to deal with an emergency.

See also Do Kwon saying the same thing: https://twitter.com/stablekwon/status/1525238422264172544?s=...

The amount of trust displayed in a supposedly trustless ecosystem is amazing to me

Hey, if they didn’t have faith, they’d have nothing.

Oh… wait…

Who said I trust them? Do you really not believe they will provide an accounting? Want to bet?

These idiots lost people billions of dollars. I think they have a target on their back from pissed off investors, regulators, etc. There is no way they can avoid providing an accounting, and with BTC being onchain, it would be very hard to try to lie about what the funds were used for. But I never even said I trust their accounting, just that they will provide one.

I imagine they may have made many transactions with the BTC during the emergency, and they are still dealing with the fallout. My only point was that pointing to two days of silence is a bit ridiculous. Things take time, and they have competing priorities. Give them a few days.

Happy to bet any of the downvoters that disagree...

Which regulators? Also their “investors” will get their fair share of that billion, don’t worry about that. There is nothing to account for, don’t underestimate what a bunch of people can set up for a billion $.

Dae Kwon lives in Singapore, I imagine he'll find a friendly jurisdiction outside of US regulators.

How is that a Ponzi scheme? That is just a scam.

I'll never understand this. Seemingly, in modern lingo, ponzi scheme means "any unethical thing relating to investments". People will argue to death that any scam investment is a Ponzi even when they have nothing to do with the original definition

My understanding was he was offering 20% returns on investments and it seems it was paid for by new money coming in propping up the currency despite the dilution caused by interest payments. That sounded like a Ponzi scheme to me.

On mobile, a popover shows up in the middle of the screen about the 'Bancor Network' with no close option. Only way to get rid of it seems to be to click on it.

This seems like a great way to make sure no one wants to read your site..

Of all the things that happen during the unpegging event, "unaccounted" for BTC (a 100% trivially traceable token) is the last thing people should be worried about.

Trivially traceable, once its hash becomes known, no?

They know the Luna wallet address and all the BTC that was in it.

They just don't know what some of the addresses it was sent to are.

People really need to stop wasting their time with financial charades and use their time to build systems that actually accomplish things.

Until these financial charades stop making money, people will continue to use them to try make money.

They make money in the sense that they transfer money from the gullible to the unscrupulous, while heating the environment in the process.

It isn't evident that any lasting value is actually being created or that it isn't a zero-sum game.

This is unfortunately true of far more of the economy than a lot of people will admit.

Luna is a proof of stake system. The energy usage is negligible.

While the rest of your comment may have some truth in it the different types of stake mechanism should really be understood on HN.

HN seems to have unanimously thrown all nuance to the wind whenever crypto comes up

Monero appears to have succeeded at creating private and anonymous cryptocurrency. That's extremely valuable, it should be the default for all transactions everywhere.

> transfer money from the gullible to the unscrupulous

this, has some value in the same way natural selection has value in nature.

A very Machiavellian observation. Maybe next we can just start exterminating people we deem unfit? I think a few have tried that before.

Should we also stop developing games? Do those things qualify as "systems that accomplish things"?

Games, like movies and tv and books and many hobbies, provide entertainment value and also help you learn practical skills.

Crypto can also do this, I suppose, but I think most people would admit that their main motivation is for earning money. It is my argument that they stand a much better chance of making a positive sum of money doing something else.

Thank you, jsiaajdsdaa from the internet, for finally pushing all of humanity towards the correct acttions and to stop wasting time "not actually accomplishing things". Everyone was really confused right up until you pointed that out.

Thanks! I'll use the Cuomo line from 2020... "If we can save even one life..."

The day everyone stopped growing their plants to deputize people for special professions you started to get inefficiencies in the system with some or many trying to game the process to gain their living. It’s inevitable, and to think you can just stop it by edict Is impractical.

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