Jim Chanos on Cryptocurrency, Coinbase, and Contagion – Episode 75



In this episode Bennett Tomlin and Cas Piancey are joined by legendary shortseller Jim Chanos to discuss his legendary shorts, …


48 Comments

  1. Thanks so much for your work! Totally agree about financial education – I'm taking an elective about monetary and fiscal policy and it's the first time I have ever learnt things about ecos/finance. Would've been great if I had sought it out + had been encouraged to study it, but after learning so much over the past 3 months I think a basic level of financial literacy and understanding should be compulsory at school!

  2. With tether et al crypto have their own market metrics and understood they can inflate btc price cost free and pump price to elongate the fraud cause gamblers are happy and not going to courts.. now we see that starting

  3. @4:30 There's a big distinction between selling future inventory (airline tickets, future crop harvests etc.) and short-selling by borrowing shares from custodians who are lending their customers' shares. Our stockbrokers should have a fiduciary obligation to not loan our shares, as that drives the price down and hurts our long positions. Self-custody of shares would finally stop this abuse.

  4. Love Jim Chanos. Thank you for the interview. Question: is the entire web3 blockchain idea a farce. Forget cryptocurrency as investment, what about the goal of decentralized services and software applications? Unneeded?

  5. Amazing episode! Better and more insightful than even CNBC, Bloomberg, etc. I'm surprised none of the channels have come requesting to talk to you guys yet.

  6. This channel is so underappreciated. I have first saw your LUNA-TERRA videos but man this is amazing as well. What a great guest and that has to be said: what great hosts! Well done.

  7. good stuff! didn't know this crew. will follow. listening with open hears. the comments on Tether are nothing new and not particularly correct. take on Coinbase is right but again nothing new there, Coinbase profits depend on lots of trading. can't value Coinbase without talking about Coinbase Ventures. i hope Chanos did not short Alibaba since the IPO, haha. it is silly to say "VIEs are set up to entice Western capital into China". in fact VIEs are set up because Chinese corporate law is still retarded. so lawyers built a solution around that. but yes the Alipay move by Jack Ma was scammy. good points on crypto being predatory. saying that "UST was obviously going to fail" is fully wrong. there was clearly a risk but it was the classic confidence game needed for money to have value. the same risk that this little green piece of paper that says it's worth $100 is worth nothing once people lose confidence in it. that's the power of FDIC insurance. as you correctly point out. FDIC insurance essentially makes bank runs disappear. and ironically, FDIC insurance mostly makes FDIC insurance unnecessary. the UST team and investors didn't seem to understand that. yes don't short crypto. that's a LA Dodger cap? why is it red and not blue?

  8. I am wondering why chanos uses tangible book value to value a crypto company. Which assets like crypto are intangible. So the case he has for coinbase short is maybe not correct or what am i missing here?

  9. Fantastic episode. Have you guys done one on online communities because I think those can pose big dangers in warping people's perspectives for both crypto and stocks. Terra Luna's "Lunatics" is a great example but any community of pumpers can make people feel like they are part of something larger while obscuring the fact that all of this is really about making wise individual monetary decisions.

  10. Mention was made of a Bloomberg interview or article about Sam Bankman-Fried. Jim Chanos mentioned the article as something that he points people toward when they ask him to explain crypto. It seems that SBF has been interviewed multiple times by Bloomberg. Does anyone know which interview they are talking about?

  11. I am neck deep in crypto and actively avoid having to use Tether. It's an easy low hanging fruit to pick and throw at the crypto space. As Jim says, for people who are "depending on Tether… and the crypto space", most studied and responsible members of the crypto community do not "depend on Tether". This is a great interview and glad I found you guys! Always important to pay attention to the other side of the street and ask ourselves "what if I'm wrong?"

  12. Glad you do what you do, but this felt really echo chambery. Why not try to facilitate debates between people like this and people like Robert Breedlove or Jeff Booth. I'd like to see this guy explain how fiat is less of a ponzi than BTC when he's faced with minds like theirs.

    “He who knows only his own side of the case knows little of that. His reasons may be good, and no one may have been able to refute them. But if he is equally unable to refute the reasons on the opposite side, if he does not so much as know what they are, he has no ground for preferring either opinion… Nor is it enough that he should hear the opinions of adversaries from his own teachers, presented as they state them, and accompanied by what they offer as refutations. He must be able to hear them from persons who actually believe them…he must know them in their most plausible and persuasive form.” – John Stuart Mill

  13. Absolutely wonderful!

    Even as someone who has mostly ever interacted with crypto as a hater on the sidelines, I appreciate so much the level of depth that this podcast brings not only to investigating the various frauds in crypto, but the larger phenomenon of cryptocurrency itself. And, of course, all of the secondary financial subjects that the hosts comment on according to their expertise is lovely, too.

    Thanks so much for continuing to put out some lovely, lovely stuff!

  14. Great work as usual guys! It's fairly rare to see critical, well informed discussions about crypto and its landscape. And i mean critical in the sense that you are looking at something objectively and start peeling back the layers.

  15. JOHN LAWS EXPLANATION FOR FIAT ISNT NECCESSARY , IF YOU JUST MAKE FRACTIONAL RESERVE BANKING ILLEGAL (FRAUD, WHICH IT IS AND USED TO BE)….. FIAT IS EVIL

  16. It's not so much the Golden age of crypto fraud. It's the END of an age marked by corruption on all levels, aka Kaliyuga, when everything breaks down and Kali wipes it all out… the golden age is about to begin… aka Satyayuga.

    Crypto is more money worship, and observe the loses, the fear, the confusion. Money won't exist in the golden age…

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