81–90 of 141 posts
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Plenty of OUT tx: https://etherscan.io/address/0x2faf487a4414fe77e2327f0bf4ae2...
Every single "OUT" TX appears to be for 0 eth? Upon further inspection, it actually looks like the only transactions they're processing are the ones from their own wallet. The entire TX history looks really suspicious to me.
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Every single "OUT" TX appears to be for 0 eth? Upon further inspection, it actually looks like the only transactions they're processing are the ones from their own wallet. The entire TX history looks really suspicious to me.
Doesn’t it display as 0 ETH if it’s an ERC20 transaction?
That being said, does FTX even allow custodial ERC20 transactions? I'd be surprised if they did.
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The article seems to be based on https://etherscan.io/tokentxns?a=0x2faf487a4414fe77e2327f0bf... , which does seem to have only incoming transitions unlike the "FTX Exchange 3" account you linked. Is this FTX changing their patterns for which accounts they use for withdrawals, and then this being interpreted as withdrawals being halted?
Plenty of OUT tx: https://etherscan.io/address/0x2faf487a4414fe77e2327f0bf4ae2...
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Let's break this down. If you're FTX, you don't have ATMs. You have a digital teller system that is leveraged against your own liquidity. If you fail to go liquid, one of the first things you'll stop doing is liquidating other people's transactions. This is a problem, because it creates an adversarial relationship between the currency-holders and the exchange managing their funds. Making matters worse, cryptocurrency…
I don't really get what you are talking about. Any sane custodial system has "hot" funds from where customers withdrawals are processed from. When the "hot wallet" drops too low, it is refilled from "cold storage" which is high security offline storage, and usually way slower to get funds out of because humans are involved in the process. If business is going as usual, customers don't see anything, because hot wallet…
Exchanges simply don't work. The comparison between them and banks ignores the surrounding regulation and guarantees that banks are obligated to issue you. Are my FTX holdings FDIC insured?
Unlike traditional finance, all this is on-chain, so you can trivially look it up. 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.
I admit I did panic and tried to withdraw my funds yesterday. They just processed it today. A bit delayed but still processing.
Second one out, no problem.
Last one out, problem.
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I don't really get what you are talking about. Any sane custodial system has "hot" funds from where customers withdrawals are processed from. When the "hot wallet" drops too low, it is refilled from "cold storage" which is high security offline storage, and usually way slower to get funds out of because humans are involved in the process. If business is going as usual, customers don't see anything, because hot wallet…
The problem is that even your "sane" system will consistently fail to be appropriately liquid, even when compared to traditional finance. Exchanges are a liability being thrown into the mix, and since the cold/hot funds aren't regulated they could frankly be spent on anything . Their cold wallet could be tied up in the speculation market or being leveraged against lenders. Every one of these exchanges has every incen…
It's not that simple. Operate enough against the user's and you'll find yourself indicted. Not being regulated doesn't mean it's a free for all and you can just take the money.
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I wouldn’t consider the crypto universe to be “finance” 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
I used to work in (trad) finance and while I want to agree with you, there's also a lot of trend following and going to where money is moving, with a belief that if it does go to shit you'll see the writing on the wall first before your winnings turn into losses.
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I admit I did panic and tried to withdraw my funds yesterday. They just processed it today. A bit delayed but still processing.
Nothing wrong with taking a caution first approach. However to me most articles about FTX seem like "panic first, research after". Yes SBF's investment company might be fucked, but customers funds should be totally separate from that.
We only have to look at the other crypto firms that have gone bust to know this space is rife with problems in that area - lies about FDIC protection, cryptocurrency and tokens considered part of company assets and subject to creditor claims, rather than customer deposits etc.
I wouldn’t like to rely on that “should”.