41–50 of 141 posts
Seriously? This is kind of incredible. SBF has always seemed like an interesting operator in the space, and his proposals for regulation now appear to have gained him a lot of enemies. I wonder how much of this market pressure is organic vs organized. Certainly CZ from Binance seems to have planned a squeeze on them.
All of HN knows that Tether is a scam that will implode AnyMomentNow (TM). However, notice how for the second time in a year an unexpected crypto entity (FTX/Alameda) is the actual one which is in difficulty. The first time being 3AC/Celsius. In finance, when everybody knows something, it's 95% likely to be false.
Crypto scams/schemes and also legitimate crypto service providers also have another vulnerability: getting hacked or external influences (e.g. economic crises, legislation, sanctions or asset seizures) making their business model impossible to continue.
The problem is: it's sometimes very hard to determine if a crypto service is a scam, a pyramid scheme, a money-laundering operation or a legitimate service. And almost nothing of it (except certain NFTs which have legally bound real world entities tied to them such as [1]) is backed by actual real-world liquid-ish assets.
[1] https://www.entrepreneur.com/business-news/the-first-nft-hom...
All of HN knows that Tether is a scam that will implode AnyMomentNow (TM). However, notice how for the second time in a year an unexpected crypto entity (FTX/Alameda) is the actual one which is in difficulty. The first time being 3AC/Celsius. In finance, when everybody knows something, it's 95% likely to be false.
"But what’s so special about the FTX crypto derivatives exchange? What's the use case of the native FTT coin, and why is the project tipped as one to watch for the future?"
Earlier quoted context omitted.
> Even if FTX has stopped withdrawals, it does not necessarily mean they are insolvent. Listen to yourself.
If the ATM Cash Machine stops withdrawals because it's out of money it doesn't mean that the bank which owns it is insolvent. Even if you go to a bank branch, large withdrawals ($100k+) need to be announced days in advance, they will not give you the money on the spot.
4 days ago there was an interesting discussion here about a possible Alameda/FTX bankruptcy: https://news.ycombinator.com/item?id=33464494
And I love how you have self-professed specialists that tell you "no this will never happen". Finance is full of over-confident people that don't know enough or have too much at stake.
The vast majority of finance people have been in the Matt Levine school of thought the entire time - the entire industry is a ponzi and every crypto person who thinks the way traditional finance does things is stupid will end up slowly replicating all the traditional finance structures and norms because it turns out they exist for a reason
https://etherscan.io/address/0x7abe0ce388281d2acf297cb089cae...
FTX seems to be processing withdrawals normally. For the life of me, I can't understand why journalists love to speculate instead of doing a 5-second search on EtherScan.
All of HN knows that Tether is a scam that will implode AnyMomentNow (TM). However, notice how for the second time in a year an unexpected crypto entity (FTX/Alameda) is the actual one which is in difficulty. The first time being 3AC/Celsius. In finance, when everybody knows something, it's 95% likely to be false.
I think it's a really hot take to point at a scammy crypto entity falling to pieces and conclude that this is evidence crypto skeptics are wrong.
If HN can spot scams so easily, how come there was no talk here about 3AC/Celsius and now FTX/Alameda being obvious scams.
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