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FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

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Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#101

Post by JumpCrisscross »

janmo wrote: post #95
bigdaddyrabbit2 wrote: post #48

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.

SBF and CZ tweeted. https://twitter.com/cz_binance/status/1590013613586411520 https://twitter.com/SBF_FTX/status/1590012124864348160 Reading through the lines: FTX is in trouble and faces a "liquidity crunch", Binance might acquire them (But will do Due Dilligence first). FTX US is not affected (SBF says funds are SAFU for FTX US, probably withdrawals are working for US but not FTX global)

> SBF says funds are SAFU for FTX US

Why would anyone trust this?

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#102

Post by joyfylbanana »

Nursie wrote: post #90
joyfylbanana wrote: post #60

Earlier quoted context omitted.

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.

I think that “should” is working really hard there. 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”.

> I wouldn’t like to rely on that “should”.

And you don't have to. Best always to hold your own coins yourself if you have that possibility, or use a custodian you trust.

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#103

Post by [deleted] »

bigdaddyrabbit2 wrote: post #48

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.

[deleted]

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#104

Post by skippyboxedhero »

xadhominemx wrote: post #47
ta988 wrote: post #37

Earlier quoted context omitted.

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.

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

The vast majority of finance people don't give a shit about the value of the product. Their business isn't to take risk or speculate, that is what your money is for. Their job is to give the people what they want, and earn hard-money commission. That is it.

I will say though: I think crypto is here to say, I think normal finance is here to say, they aren't incompatible. What I think was illogical was to suggest that blockchain was a substitute for very efficiently run operations (like custody)...but it could be used elsewhere (for example, having investment funds do transfers on a blockchain is interesting) because it is also true that other parts of the industry are pre-historic (anything retail-facing is usually expensive and poorly-run, the whole retail fund value chain is a joke).

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#105

Post by jakelazaroff »

joyfylbanana wrote: post #102
Nursie wrote: post #90

Earlier quoted context omitted.

I think that “should” is working really hard there. 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”.

> I wouldn’t like to rely on that “should”. And you don't have to. Best always to hold your own coins yourself if you have that possibility, or use a custodian you trust.

> or use a custodian you trust

That's the point. A lot of "trustworthy" crypto custodians have turned out to be… not.

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#106

Post by new2this »

twawaaay wrote: post #59
SilverBirch wrote: post #32

Yeah, to be honest, looking at this from the outside I would say this is highly, highly likely to all come permanently crashing down. First there was the questionable behaviour - SBFs odd deals with various collapsing entities back earlier in the year, then there was the leak of Alameda's balance sheet looking incredibly shakey, and now Binance has seemingly decided they're going to stress test FTX. Most real banks w…

It will and there is a very simple reason it is going to happen. These products are built purely on trust. These things do not have any innate value. More than that, there is nobody that can be trusted that guarantees the value of it. Now think about long term stability of something that has value built purely on sentiment and the sentiment changes over time in waves thanks to globalisation. It is just a matter of ti…

This comment seems to be focused on the viability of any individual crypto, but that _shouldn't_ matter for the value of a company like FTX.

FTX has value because it has customers, growth, and most importantly: revenue.

If any one crypto goes bust then it shouldn't hurt FTX in the long run, unless they were leveraging that crypto to make unscrupulous bets. That very well could be happening via Alemeda.

So you may be right that this is destined to come crashing down, but it doesn't seem like the facts are proven yet

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#107

Post by jfghi »

nova22033 wrote: post #96

https://twitter.com/cz_binance/status/1590013613586411520?s=... From CZ This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

All would be fine if it wasn’t for these heretical fudders trying to get in the way of this revolutionary investment opportunity. /s

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#109

Post by xadhominemx »

skippyboxedhero wrote: post #104
xadhominemx wrote: post #47

Earlier quoted context omitted.

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

The vast majority of finance people don't give a shit about the value of the product. Their business isn't to take risk or speculate, that is what your money is for. Their job is to give the people what they want, and earn hard-money commission. That is it. I will say though: I think crypto is here to say, I think normal finance is here to say, they aren't incompatible. What I think was illogical was to suggest that…

Was this a reply to my comment?

Re: FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

#110

Post by twawaaay »

new2this wrote: post #106
twawaaay wrote: post #59

Earlier quoted context omitted.

It will and there is a very simple reason it is going to happen. These products are built purely on trust. These things do not have any innate value. More than that, there is nobody that can be trusted that guarantees the value of it. Now think about long term stability of something that has value built purely on sentiment and the sentiment changes over time in waves thanks to globalisation. It is just a matter of ti…

This comment seems to be focused on the viability of any individual crypto, but that _shouldn't_ matter for the value of a company like FTX. FTX has value because it has customers, growth, and most importantly: revenue. If any one crypto goes bust then it shouldn't hurt FTX in the long run, unless they were leveraging that crypto to make unscrupulous bets. That very well could be happening via Alemeda. So you may be…

I can't speak about FTX the company, because I just don't know their business.

I am speaking about crypto in general.

From what I have seen a lot of companies popped up that are purely bound to crypto and so almost all of them will fall when crypto falls. Only very small minority have enough business footprint outside of crypto or will be able to pivot in time to avoid demise if it happens.

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