jsonstein@masto.deoan.org ("Jeff Sonstein") wrote:
playing around with @simon wonderful `llm` commandline tool tonight:
% llm -s "act like you are a D&D assistant using the SRD rules." "create a complete character sheet for a Ranger character and give it to me in markdown, please" > rangerCharSheet.md
% pandoc -o rangerCharSheet.html < rangerCharSheet.md
and the test results actually ain't too bad:



![But the rot uncovered here seems to go far deeper than just some random blockchain venture capital firm. A recording of a 26-minute-long call between Moty Povolotski, the co-founder of a project called DefiTuna, and Ben Chow, a co-founder of the Meteora decentralized exchange, was posted on Twitter.6 Meteora and Jupiter are two popular Solana decentralized exchanges, which have enjoyed massive spikes in trading volume amid the memecoin frenzy. Ben Chow has just resigned amid allegations that he was directly involved in a massive insider trading scheme implicating other members of Solana defi projects including Jupiter, and involving presidentially-linked tokens Libra and $MELANIA. It turns out that the owner of Jupiter, known only as “meow”, also co-founded Meteora, which we learned when he came forward to announce that he would be kicking off an independent investigation of activities at Meteora under Chow’s leadership, although he also “reiterate[d his] confidence that no one at Jupiter or Meteora committed any insider trading or financial wrongdoing”. The call is so bonkers that I just transcribed the whole dang thing for you. “The whole thing just looks rotten to the very core. Like, I don't have words to express...” said Povolotski, describing witnessing rampant manipulation and token sniping by the people launching presidentially-linked tokens, the influencers being paid to promote them, and those working at major Solana projects including Jupiter and Meteora. Both Pov](https://files.mastodon.social/cache/media_attachments/files/114/027/867/368/812/299/original/9b28d37ca8f631a8.png)

![Bybit CEO Ben Zhou was quick to try to reassure customers that “Bybit is Solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss.”14 Many customers weren’t satisfied with his promises,b and they withdrew a combined more than $5.5 billion from the exchange after the theft was announced. Bybit was able to satisfy the withdrawals, and has since said they “closed the gap” in ETH supplies to back client assets through a combination of OTC purchases and loans from exchanges and crypto VCs.15 The lack of skepticism around Bybit’s solvency is a little odd to me. For one, it’s clear that the assets were not 1:1 backed at the time of Zhou’s tweet, given that 400,000 ETH had just been stolen. Bybit later issued a press release boasting that they were “Fully Backed Within 72 hours”, acknowledging themselves that customer balances weren’t fully backed for those three days.16 Furthermore, much of the “gap” has been papered over with loans rather than the firm’s own assets. As we saw with Genesis’s $1.1 billion “loan” to try to cover losses in 2022 [I74], a company’s ability to secure a loan to cover a hole does not magically make that hole disappear. While Bybit’s proof-of-reserves demonstrates that the company now holds a sufficient quantity of ETH to back customer balances, these reports do not evaluate Bybit’s ability to repay the loans or provide any information about the terms of those loans.](https://files.mastodon.social/cache/media_attachments/files/114/095/867/279/385/376/original/a38858a3a04921d3.png)
![Besides the mention of specific crypto assets, Trump’s post doesn’t actually appear to announce anything new, and instead reiterates that his “Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve” [I75]. (I will note that the actual wording of the EO was more guarded, directing the working group not to “move forward on” a strategic reserve, but rather to “evaluate the potential creation and maintenance of a national digital asset stockpile”.) Nonetheless, crypto prices rallied a bit, with bitcoin returning to around $93,000. This was still somewhat of a subdued recovery, only juicing bitcoin back to around its February 25 price, leaving me wondering how many promises Trump has left in the tank to keep bitcoin prices pumped up as they are now. Without the actual government infusion of cash into bitcoin markets via this “strategic reserve” gambit — something that may yet be a ways off, could take various forms, and could fail to materialize entirely — words alone seem to be running out.](https://files.mastodon.social/cache/media_attachments/files/114/095/861/231/849/208/original/c537c05dea3f09b2.png)



