We just updated our #Bitcoin-backed loan agreement to make it crystal clear:
Your #Bitcoin is never rehypothecated on Strike.
Never has been, never will be.
https://blossom.primal.net/0adbd505a478fad0b0fadac1c4bb4fe2dd49ce94aff6348443f083e1b23fc7fb.mp4
just crystal #Bitcoin-backed
Never updated clear:
Your has make it agreement We never be.
https://blossom.primal.net/0adbd505a478fad0b0fadac1c4bb4fe2dd49ce94aff6348443f083e1b23fc7fb.mp4 to is Strike. will rehypothecated been, never loan #Bitcoin on our
just crystal #Bitcoin-backed
Never updated clear:
Your has make it agreement We never be.
https://blossom.primal.net/0adbd505a478fad0b0fadac1c4bb4fe2dd49ce94aff6348443f083e1b23fc7fb.mp4 to is Strike. will rehypothecated been, never loan #Bitcoin on our
FUD-Buster
Good on you
I hope there's enough drama here to keep me interested for 5 mins.
Good promise
Great job of responding so quickly and clearly. That is a Bitcoin company.
If Strike goes under theoretically(god forbid) what happens to the borrowers coins? Who has the custody?
Damn straight. Companies can learn from your responsiveness, clarity and sincerity.
Further rehypothication.
Needs to be in writing. Words mean fuck all
ah, you didn’t watch the video.
it is in writing: https://primal.net/e/nevent1qqsqxd7h84k62e36hrupgllr6ym9gjyfrcd4lzhdsjg67jj4zha505c3fm059
You got me. I'm glad it is
Can your bank partners rehypothecate? You specifically said rehypothecated on strike. Maybe that's splitting hairs. But I had a near miss with Blockfi and only was barely saved because I took back custody of my Bitcoin after nostr:npub1qny3tkh0acurzla8x3zy4nhrjz5zd8l9sy9jys09umwng00manysew95gx sounded the alarm.
nope, they cannot
Appreciate your transparency and willingness to listen as always Jack
LFG - this is what I was hoping for. Really glad to see acknowledgment and action in response. Wish more companies operated this way.
proof of reserves coming to strike for the billpay crowd?
According to the AI “lawyers” at Chat GPT, there are potential loopholes in the new clause, here’s a tldr, but I’d suggest prompting the full section yourself and digging in.
1. “Subject to the capital provider’s terms”
2. “ultimately held in segregated wallets” allows for temporary pooling or indirect use
3. No definition of re-hypothecation and on-lent: does this include derivatives and what about cross-margining or internal leverage on the capital provider’s balance sheet.
My take:
No modern day lender wants straight consumer book yield, they want their regular dose of leveraged rolled-up steroids. You get a mortgage, your house itself is not re-hypothecated: but the land title is altered, and the lender can and does rehypothecate the mortgage itself, which is now backed by your/their house.
This indirect mortgage re-hypothecation can cause a house of cards to be built atop an otherwise stable asset class, and when that house is big enough, stakeholders that are not the customer have direct incentives to manipulate the underlying asset to either stabilise or disrupt, for profit.
Correct. "Further Rehypothecation"...meaning after the first round of rehypothecation? "Repledge" fits the spirit of the agreement but is still too vague. This is lawyer two stepping. Ask me how I know. nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9 has gotta tighten this up a bit. If their partners will let them which I doubt they will. We shall see. There are a couple other solutions suggested above re. proof of reserves. I trust nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle intentions. He's a good dude. I would really like to give him all my business. Time will tell...
Correct. "Further Rehypothecation"...meaning after the first round of rehypothecation? "Repledge" fits the spirit of the agreement but is still too vague. This is lawyer two stepping. Ask me how I know. nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9 has gotta tighten this up a bit. If their partners will let them which I doubt they will. We shall see. There are a couple other solutions suggested above re. proof of reserves. I trust nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle intentions. He's a good dude. I would really like to give him all my business. Time will tell...
Sounds like an awesome product.
Been thinking about this - in the future it will make much more sense to use your BTC as collateral for an house downpayment f.x. - because using a consumer good (house) as a collateral makes no sense in a hard money world and turns you into a debt slave.
Umm. Where’s my PoR multisig address to verify?!?
🧡
Good
On Strike.
it´s just a matter of time until you change the rules, don´t play dumb
NYKNYB
Excellent response, clarification and assurance Jack 🫡
My major skepticism when it comes to borrowing using btc collateral on an institutional scale (following Citadel GameStop order flow shenanigans, ie. insider fraudulent alchemy, conveniently swept under the rug 🫤) is:
How will you keep the margin call and liquidation data private? Consider the following…
A. The Bitcoin-backed loan service providers lay the carpet to Bitcoiners that would like a loan;
B. The data of borrowers margin and liquidation price points (the insider information) are known by those behind/connected to the loan service providers;
C. The market makers (backed by unlimited printable fiat controllers) target an optimised $ btc price and set the cascade in motion;
D. More Bitcoin are sold as further liquidation limits are breached, price falls too rapid for borrowers to take action;
E. The cantillionaire class who colluded to pull the rug swoop in for Bitcoin now on sale. Pristine btc collateral of struggling plebs, advised to borrow against rather than sell part on SM, now stolen by the ‘looters’ that control the rigged system;
Very interested to know if this is a valid concern…🤓🫡
