18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
16,986 Blog Posts

Cryptos Continue to Careen Lower; Overall Market Cap Dips to $100 Billion

How ever will they recover?

They won’t.

The crypto slide continues, almost unabated. Over the past 24hrs, BTC is -19%, ETH -22% and #BTC cash -28%. The overall value of the ICO market, including BTC, is now down to $100 billion. To put this into perspective, I was discussing how horrible a bubble this was when the cap was $85 billion.

Over the past hour, Litecoin has dropped by 8% and Ethereum by 3.5%.

The peak for Ethereum, the thing that this whole ICO scam is predicated upon, was on 9/1/17 at $398. ETH is now trading at $199.

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Terror Attack in London: Pound Rips Higher, Stocks Dip Lower

There was an IED attack on a London train this morning. This is the last thing I want to talk about this morning, so you can catch the live updates here.

Subsequently, there was also a knife attack in Paris. This is having a profound bullish effect on the British pound, which is higher by 1.43% v the dollar.

European stocks are flat, but the British FTSE is -1.25%, offset by the gains in her currency.

Apparently, the Bank of England is getting hawkish.

“The standout undervalued currency in G-10 is sterling,” Citigroup Inc. Strategists led by Jeremy Hale said in a report. “The possibility of a hike in the near term is now non-negligible and this, combined with the fact that the pound’s real effective exchange rate is close to its all-time low, could support the currency from here.”

On the other hand, as Unicredit’s Gkionakis said, “If they don’t do it (hike rates) this time, their credibility will be lost completely for the next few years.” Markets expect the BoE to move in November, he added.

A great big nothing burger, atop a flaming vegan grill.

Nasdaq futs are -16.

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Venezuela Concocts Plan to Fight Hunger: Eat the Rabbits

The result of populist socialism in Venezuela has produced widespread inflation (700%) and panic stricken hunger.

To combat shortages in food, the Venezuelan government unveiled a new plan to eat all the rabbits.

Under the program dubbed ‘Plan Rabbit’, Venezeula’s agriculture minister, Freddy Bernal, reminded people “The rabbit isn’t a pet, it’s only two and a half kilos of meat.”

“The first part of Plan Rabbit moves forward,” said Bernal.

“Plan Rabbit” illustrates the government’s extreme measures to alleviate food shortages in Venezuela. Rabbit is not a commonly eaten item in the South American nation, where Bernal conceded that it’s mostly viewed as a cute pet.

The agriculture minister argued that rabbits easily reproduce and are a source of protein. He also recommended citizens consider raising and growing other animals and vegetables at home.

It’s just the latest attempt to try and solve the food shortage problem. The government forces citizens to pick up groceries on certain days of the week depending on social security numbers. It still sells staple items, such as corn flour, at extremely low prices.

It has also hiked the minimum wage three times this year, though inflation is expected to outrun any wage increases. The IMF forecasts that prices will rise 720% in Venezuela this year.

A national poll published earlier this year found that Venezuelans lost 19 pounds on average in 2016 due to food shortages. Venezuelans line up for hours outside supermarkets, waiting to buy the most basic items.

Venezuela must ship in almost all the food it needs after the government severely mismanaged farmland that it nationalized. The very low, fixed prices on everything from corn flour to coffee have put many farmers out of work.

Compared with 2015, food imports from Venezuela’s top trade partners were down 61% in the first five months of this year, according to Panjiva, a trade research firm.

“We’re looking for creative solutions in the socialist vision,” Maduro said.


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End of an Era: Hugh Hendry Closes Down Eclectica

Once upon a time, Hugh Hendry was my favorite celebrity hedge fund manager. It wasn’t his prowess in the markets that attracted me to his verbose manner in communicating simple analysis — but his extreme underlying rage that lurked under a nervous smile.

An interesting side note with Hugh, he crushed the market during the crisis and it resulted in massive redemptions — because his investors were scared of the beta. This is a very important lesson to be taught for you young gunslingers out there. Big investors never want to see a fund +30% in a month. They’ll take the money, run, and count their blessings for having the occasion.

At one point in iBC history, whenever I bought TLT, I referred to it as ‘Doing the Hugh‘ — because Hugh had an affinity for deflation and always thought we’d end up inside of its vortex.

In his letter to investors today, Hugh, melancholically, said “It wasn’t supposed to be like this” — describing a market environment that had been untradeable for him. Every market is tradeable; Hugh was just using the wrong methods. Nonetheless, as a man who quit professional money management nearly 2 years ago, I understand what Hugh is feeling now and it kind of sucks. On one hand, I had this wonderful distraction of running a first class blog, always busy inside Exodus, and fomenting massive strife across the globe — but on the other a void, subtle, but a void nonetheless.

What does Hugh have, a few pencils and a book?

I used to watch CNBC Europe religiously back in the day and saw this one live. It was really tense and I thought Hugh and the other bloke were going to start punching each other on live teevee. Incidentally, as I understand it from a former anchor at CNBC Europe, Hugh had been banned from the show after years of causing chaos and pulling stunts like this — which is why he hadn’t been on in years.

Hugh vs Stiglitz


Lastly, a year or so ago, Hugh said he gave up on shorting stocks and went long — saying he ‘felt like the sun only rose to humiliate him.’

Investing it a tough racket and yesterday’s victories, sometimes, cannot be repeated. Cheers to you Hugh and best to luck in your future endeavors.


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Cryptocurrencies Continue to Crash: Is All Hope Lost?

Let’s review the extent of the carnage inside of the dark, cavernous catacombs of the ICO world — a place where outright scam artists get rich by tricking people into believing their ‘coin’ will make them rich. This has never been about preserving value, supplanting fiat, but promoting a bubble that is backed by venture capitalists.

Let me repeat that for you thick brained fuck-sticks who think that by purchasing ETH or BTC you’re ‘sticking it to the man.’

Remember Uncle Fred Wilson, the man behind Twitter, Etsy, Zinga, and a slew of failed IPOs? Fred’s been involved in Coinbase and the blockchain since 2011. After Fred got in, his whole cadre of followers and sycophants followed suit. As of today, the industry is teeming with vultures looking to continue this Ponzi scheme — thrusted ahead by lunatics like John McAfee.

Here are some of the losers over the past 24hrs

Sprouts -87%, $1.6m mkt cap
MergeCoin -59%, $768k mkt cap
MegaCoin -56%, $785k mkt cap
Asch, -52%, $10.6m mkt cap
Hshare -40%, $227m mkt cap
DogeCoin -33%, $102m mkt cap
SysCoin -33%, $80m mkt cap
SiaCoin -31%, $114m mkt cap
NAVCoin -30%, $42m mkt cap

And for the big ones
Bitcoin -16%, $54b mkt cap
Ethereum -16.5%, $21.7b mkt cap
Ripple -13%, $6.7b mkt cap
BitCoin Cash -20% $6.7b mkt cap
Litecoin -25%, $2.5b mkt cap

You get the gist. We’re talking -30% to -60% moves over the past 7 days.

I hate to see anyone lose money — but these people truly deserve to. They’re buying ‘coins’ with zero voting rights, zero regulations, zero oversight, zero compliance other than Github and Reddit peer review, and zero ownership in the companies they’re investing in. These ICOs are the ‘essence’ of the company and mean nothing.

The Reddit forums, as you would expect, are filled with people on suicide tilt, and true believers with confirmation bias who’re trying to say this pullback and China ban is a ‘good thing.’

This pretty much sums it up.

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Minor Pullback Underway

The Dow and Nasdaq are diverging, with big ass losses (BALs) found in a sundry of biotech stocks. I don’t want to make a mountain out of a mole hill. This is ordinary distribution — a gigantic nothing burger on a vegan grill.

“The Fly” has errands to attend to and might be out for the next few hours. Pray for my stocks and hope to God that the banks drop in the furious manner. As of right now, I am not banking coin in stocks, believe it or not. All of that should change soon, but I’m rather impatient.

Drop your top ideas in the comments section, so that when I get back I can ignore them.


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Yicai is reporting that China might ban all local cryptocurrency exchanges by September. Zerohedge delves into the price differential quoted in Yuan, down 35% now.

Yuan-denominated Bitcoin has crashed as much as 25% 35% in Chinese trading, plunging from 25,000 yuan to as a low of 16,000 on local exchanges BTCChina (and as low as 20,000 on OKCoin), following confirmation of last week’s Caixin report that Beijing would stop cryptocurrency exchange trading. China’s second largest exchange, BTC China, said that it would halt all trading on the platform beginning September 30, launching a liquidation panic.

I know some of you are thinking ‘so what, who cares, BTFD’. Let me remind you that the only reason why Bitcoins and other cryptocurrencies were trading up in the first place was because of Chinese demand. It wasn’t because some fucking idiot in Bushwick, Brooklyn was buying ETH and hoping it would replace the dollar once day.


The very essence of cryptocurrencies is to enable fraud and money laundering. Jamie Dimon was right and you should heed is warnings, in spite of what his daughter is doing. Governments will shut it down.

This was published on Weibo earlier today:

China will stop all trading business on September 30th

Dear Bitcoal Chinese users: According to the September 4 issue of the “People’s Bank of China Central Office of the Ministry of Industry and Information Technology Ministry of Industry and Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission on the prevention and treatment of the risk of the issuance of the currency,” the spirit of the document, adhering to the protection of investment risks, the maximum protection of users

The principle of interest, Bit Coin Chinese team by careful discussion, is to make the following decision:

1. Bit currency China’s digital asset trading platform today to stop the registration of new users;

2. September 30, 2017 Digital asset trading platform will stop all trading business.

Beitou China’s pool (pool) and other business will not be affected, continue to normal operation.
We apologize for the inconvenience. If you have any questions, please contact [email protected]

BTC and ETH are leading the fray lower. Total market cap is now ~$115 billion, which is still very, very, rich.

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Morning Poppers (Shkreli is in jail edition)

Good morning ham and eggers. I have a long day filled with duties atop of chores atop of things that must be done. Markets are expected to trade down a bit — with S&P futs -3. Over in Europe, the Eurostoxx 50 is down 0.22%, in line with US markets.

Gold is stable, +0.17%, but copper is getting nailed again, -1.4%.

WTI is higher by 0.6% and the dollar is off v the euro by 0.16%.

Over in cryptofagland, ETH is down 5.8% and BTC -3.7%. The ICO market has been getting smashed the past few days. Overall, it’s still worth more than $128 billion, or $128 billion more than it should be.

Here are some other headlines, courtesy of my fucking Twitter feed.

And here’s what’s trending on StockTwits. I believe THC is looking for a merger.

This just in…
Ultragenyx Pharma upgraded to Outperform from Neutral at Wedbush

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The Third Quarter iBC Boot Camp is Here

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Every single person who has participated in Jeff’s well thought out camps have loved it.

GET IN NOW and become the man your wife thought you were going to be.


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Martin Shkreli is Going to Gaol and That’s a Good Thing

I was the first person in finance to demonstrate my utter disdain for Shkreli, a man who flouted his illicit gains in KBIO, helped his buddies get rich in the stock to boot, all under the auspices of ‘activist investing.’

Since then, Marty has become something of a cult hero, larping around on the internet, live streaming his boring as fuck life — brandishing his $2 million Wu Tang record like a street badge of honor. He even picked a fight with Ghost Face Killer — something that cannot be forgiven.

This evening a judge revoked his bail and sent him directly to jail for goading his followers to grab Hillary Clinton’s hair for the purposes of extracting her DNA.

While we might not be the biggest fans of the former First Lady/Secretary of State/US Senator/2 time Presidential candidate, this is hardly something that should tolerated by a civil society who fetters out its problems through non-violent methods. We can’t have a bunch of faggots running around grabbing hair out of people’s heads, after some arrogant fuckhead issues bounties for it. People who do that should be punished. More importantly, people who’ve been convicted of crimes and are awaiting sentencing, like Shkreli, shouldn’t get to enjoy their spare time motivating others to yank hair out of the heads of others.

Once again, this concludes the bizarre saga of Martin Shkreli.

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