<story><title>Vauld suspends all withdrawals, trading and deposits on the platform</title><url>https://www.vauld.com/blog/corporate-statement/</url></story><parent_chain><item><author>sgt101</author><text>I don&amp;#x27;t know a thing about Vauld, so no accusations here, but surely people realize that anything offering +18% on what you can get from a bank will often be a ponzi scheme?</text></item><item><author>pjc50</author><text>&amp;gt; absorbing customer funds for general operations runway, lawyers and payouts for secured creditors&amp;#x2F;owners.&lt;p&gt;If they&amp;#x27;re actually insolvent, they&amp;#x27;re obliged to do this. They have no more customers, and should discontinue all operations; they only have creditors of one form or another.&lt;p&gt;A &amp;quot;yield farm&amp;quot; seems to be just an unregulated shadow bank: &amp;quot;borrow short lend long&amp;quot;, but lending into really risky assets like other cryptocurrency firms. It&amp;#x27;s not exactly Basel III.</text></item><item><author>JimmyRuska</author><text>All of these yield farms seem to reassure customers that everything is great, then the next week declare themselves insolvent. It seems that as soon as they pause withdrawals they know the company is done for and they have to set themselves up for bankruptcy. If it were depositor-first mindset, the damage could be spread out by limiting withdrawals but still giving some percentage of total deposit as liquidity. It seems pretty offensive that most of these companies just flip the switch to absorbing customer funds for general operations runway, lawyers and payouts for secured creditors&amp;#x2F;owners.</text></item></parent_chain><comment><author>lmm</author><text>Many of the individual entities are honest as far as it goes (but often the one paying you 18% is just taking your funds and &amp;quot;investing&amp;quot; them in the one paying 19%, hence the current contagion). The crypto ecosystem as a whole is the ponzi scheme, and it&amp;#x27;s only going to collapse when people lose faith in all of it, bitcoin proper included.</text></comment>
<story><title>Vauld suspends all withdrawals, trading and deposits on the platform</title><url>https://www.vauld.com/blog/corporate-statement/</url></story><parent_chain><item><author>sgt101</author><text>I don&amp;#x27;t know a thing about Vauld, so no accusations here, but surely people realize that anything offering +18% on what you can get from a bank will often be a ponzi scheme?</text></item><item><author>pjc50</author><text>&amp;gt; absorbing customer funds for general operations runway, lawyers and payouts for secured creditors&amp;#x2F;owners.&lt;p&gt;If they&amp;#x27;re actually insolvent, they&amp;#x27;re obliged to do this. They have no more customers, and should discontinue all operations; they only have creditors of one form or another.&lt;p&gt;A &amp;quot;yield farm&amp;quot; seems to be just an unregulated shadow bank: &amp;quot;borrow short lend long&amp;quot;, but lending into really risky assets like other cryptocurrency firms. It&amp;#x27;s not exactly Basel III.</text></item><item><author>JimmyRuska</author><text>All of these yield farms seem to reassure customers that everything is great, then the next week declare themselves insolvent. It seems that as soon as they pause withdrawals they know the company is done for and they have to set themselves up for bankruptcy. If it were depositor-first mindset, the damage could be spread out by limiting withdrawals but still giving some percentage of total deposit as liquidity. It seems pretty offensive that most of these companies just flip the switch to absorbing customer funds for general operations runway, lawyers and payouts for secured creditors&amp;#x2F;owners.</text></item></parent_chain><comment><author>jbjohns</author><text>Often?  What conceivable (legal) system could consistently generate such returns and not manage to capture all capital on earth eventually?  The best financial vehicle ever conceived has about 9% per year over the last 50 years or so.</text></comment>