Replying to Wonteet Zebugs

Yes. My understanding is that the shares you would own in MSTR are never actually held directly by you, but rather through custodians. In a bankruptcy of the custodian (not your bankruptcy and not even the bankruptcy of MSTR), your shares of MSTR are treated like assets of the custodian (!!) for service of the custodian's creditors!

So, again, MSTR (and others) could have the best intentions in the world and do absolutely nothing wrong, it still doesn't change the fact that you can get rug-pulled at a higher level.

#MSTR #thegreattaking #greattaking #rugpull #bitcoin #self-custody
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furio 7mo ago

I think that is established.

The stickier point is your custodial bitcoin securing a loan when a company like XXI is taken down.

Let’s assume they are “good” actors, and the elements of the book are executed. Jack would be forced to give Jamie Dimon your bitcoin or go to prison.

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Wonteet Zebugs 7mo ago

Yes, that's my understanding. Those bitcoins are custodial so they're on their balance sheet. So you just sort of have an IOU that they'll give them back to you. So, funnily enough, you're an "unsecured creditor" of the IOU for what used to be your own bitcoins.

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furio 7mo ago

Too risky ATM for me, even tho I like the idea of “buy (btc), borrow (fiat), die”

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Bitcoineros del Occidente de El Salvador 7mo ago

Sure.

To please the biggest fiat system players, the sequence is rather: "buy (btc), trust (the custodian), sell (to the State, at a forced low price), die".