Lynn Parramore’s INET interview with Chanos is suggested reading in the FT, and has been cross-posted or summarized in the following media outlets: Naked Capitalism, MSN, Yahoo, Business Insider, AOL, Markets Insider, Latest Finance, Trade for Profit, Tech Telegraph, Best Stocks, Motor Mouth, Trading View India, Trading View, Benzinga, Hataf News, Forex TV, Business News and WN.
“Storied short seller Jim Chanos is being more polite than we have been about crypto. We have pointed out that its main uses are tax evasion, crime, and speculation, none of which are socially productive. As private currencies (think frequent flier miles), they will have only limited acceptance in real economy transactions, as we have seen. And crypto owners have found they need many of the services provided by regulated financial services players, which the crypto firms have been developing in a piecemeal fashion, with few or no fraud protections, and less efficiently that traditional money players (which means higher costs and/or lower service and reliability). Chanos below directly confirms our earlier take on costs and it’s even worse than we surmised. Crypto is so high cost that has turned off institutional investors, making it a retail enterprise. The hope is EFTs will force costs down….but what you’ll see is big gaps between the NAV (which will be based on actual crypto trading) and the ETF price.” —Yves Smith in Naked Capitalism
