The valuations of VC-backed tech companies depend more on the supply of VC capital than on changes in the economics of the companies. The downturn in VC capital has caused a large drop in tech company valuations; as much as 80% for some https://www.ft.com/content/6395df7e-1bab-4ea1-a7ea-afaa71354fa0

FTX MARKET MANIPULATION

One of the clearest cases of the need to regulate cryptocurrencies. The manipulation of markets described in the article is reminiscent of the stock market before regulations were put in place to prohibit these practices.

https://www.nytimes.com/2023/02/15/technology/ftx-modulo-capital.html?login=smartlock&auth=login-smartlock

#cryptocurrencies #digitigalassets #FTX #ezrazask #investments #financialfraud #marketmanipution

FTX: Failure of Due Diligence

 https://www.ft.com/content/6e912f25-f1b7-4b19-b370-007fbc867246 

This close-up look at the breakup of FTX shows so many red flags that we have to ask how Sam Bankman-Fried was able to hoodwink the investment world for so long, especially since many of the red flags were also present in the Madoff Ponzi scheme.  It does seem like investors have to re-learn the lessons of previous fiascos every generation.

UK Proposed Digital Pound is in Sight

 The U.K.'s intent to introduce a digital pound in the coming years is notable for its commitment to giving access to banks, credit cards, and payment systems such as PayPal access to the digital payment system, thus allowing them to compete with the digital pound. The U.K.'s move is a defensive attempt to forestall competition by cryptocurrencies and similar techniques. All major countries face the same threats and are examining the introduction of digital currencies. Paradoxically, cryptocurrencies may yet have a significant impact on the world's payment system, not as a substitute for existing payment systems, but as a spur to the development of national digital currencies. 

https://www.ft.com/content/1247a045-6750-45ee-b3a9-f5144d4efb4d

What CEOs get Wrong About Activist Hedge Funds

CEOs view activist funds as predatory rather than as opportunities. https://lnkd.in/dbSA6hk

Guide to Emerging Market Debt Crises

https://www.zerohedge.com/news/2018-08-18/dummies-guide-how-external-dollar-debt-produces-emerging-market-crisis

Will Factor Investing Replace Hedge Funds?

Will Factor Investing Replace Hedge Funds? 7/22/2018 0 Comments   https://www.ft.com/content/2b3e2eaa-6fe6-11e8-92d3-6c13e5c92914#comments-anchor This article touts the benefits of using factors to make investment decisions for hedge funds. However, "factors" are beta (i.e., market indexes") variables, which means the differences between factor investing hedge funds comes down to their identification of factors and allocation among factors.  Missing in these hedge funds are producing "alpha"  investing.