Is the structure you describe for crypto also apply to the Sprott Physical Gold, Silver and Uranium Trust, meaning when investor redemptions exceed deposits, redemptions will be limited it will be limted to cash on hand which is minimal?
No, the Trust can borrow against the holdings which have collateral value or, more likely, sell some of its physical holdings to meet redemptions. There are real markets for gold, silver and uranium but no similar market for cryptocurrency tokens. There is no collateral value to cryptocurrency "assets" which only have a market in terms of other tokens unless new tokens are sold to external parties, a typical Ponzi scheme where money coming out to investors must come from money coming in from new investors.
Your logic is impeccable Michael. I'm amazed by all the "sophisticated" investors that have bought into this blatant negative-sum ponzi.
Is the structure you describe for crypto also apply to the Sprott Physical Gold, Silver and Uranium Trust, meaning when investor redemptions exceed deposits, redemptions will be limited it will be limted to cash on hand which is minimal?
No, the Trust can borrow against the holdings which have collateral value or, more likely, sell some of its physical holdings to meet redemptions. There are real markets for gold, silver and uranium but no similar market for cryptocurrency tokens. There is no collateral value to cryptocurrency "assets" which only have a market in terms of other tokens unless new tokens are sold to external parties, a typical Ponzi scheme where money coming out to investors must come from money coming in from new investors.