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Binance to acquire FTX

bloomberg.com

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Re: Binance to acquire FTX

#31

Post by ramish94 »

shapefrog wrote: post #26
ucha wrote: post #16

SBF said "We don't invest client assets (even in treasuries)". [0] He then says the purpose of the transaction with Binance is to "clear out the liquidity crunches". [1] How could there be a liquidity crunch if assets are not invested? You can't do a bank run on an entity that doesn't function as a bank and doesn't invest clients assets... Something is shifty. [0] https://twitter.com/sbf_ftx/status/158959828579870720…

12:38 PM · Nov 7, 2022 2) FTX has enough to cover all client holdings. [0] 4:03 PM · Nov 8, 2022 2) Our teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. [1] has enough to cover all client holdings ---> not enough to cover all client holding in 24 hours. Either they los…

He mentions that they have everyone’s money, and then the very next tweet says “we’ll clear out liquidity crunches”.

Literally a contradiction.

Re: Binance to acquire FTX

#34

Post by [deleted] »

ramish94 wrote: post #25
ucha wrote: post #16

SBF said "We don't invest client assets (even in treasuries)". [0] He then says the purpose of the transaction with Binance is to "clear out the liquidity crunches". [1] How could there be a liquidity crunch if assets are not invested? You can't do a bank run on an entity that doesn't function as a bank and doesn't invest clients assets... Something is shifty. [0] https://twitter.com/sbf_ftx/status/158959828579870720…

Welcome to the world of unregulated finance. There’s a reason the FDIC exists and all banks must be insured.

[deleted]

Re: Binance to acquire FTX

#35

Post by hanniabu »

ramish94 wrote: post #25
ucha wrote: post #16

SBF said "We don't invest client assets (even in treasuries)". [0] He then says the purpose of the transaction with Binance is to "clear out the liquidity crunches". [1] How could there be a liquidity crunch if assets are not invested? You can't do a bank run on an entity that doesn't function as a bank and doesn't invest clients assets... Something is shifty. [0] https://twitter.com/sbf_ftx/status/158959828579870720…

Welcome to the world of unregulated finance. There’s a reason the FDIC exists and all banks must be insured.

This has nothing to do with defi. This is purely centralized entity shenanigans.

Re: Binance to acquire FTX

#36

Post by anonu »

alphabetting wrote: post #11

September's cover of Fortune was quite the jinx https://content.fortune.com/wp-content/uploads/2022/07/COV.W...

I think SBF realized marketing is everything. Being the face of crypto, sponsoring sports stadiums, being on the cover of a widely distributed magazine, all part of the same playbook.

Re: Binance to acquire FTX

#37

Post by ChainNet »

ramish94 wrote: post #25
ucha wrote: post #16

SBF said "We don't invest client assets (even in treasuries)". [0] He then says the purpose of the transaction with Binance is to "clear out the liquidity crunches". [1] How could there be a liquidity crunch if assets are not invested? You can't do a bank run on an entity that doesn't function as a bank and doesn't invest clients assets... Something is shifty. [0] https://twitter.com/sbf_ftx/status/158959828579870720…

Welcome to the world of unregulated finance. There’s a reason the FDIC exists and all banks must be insured.

There's nothing decentralized about FTX or Binance. They operate in an opaque manner like any traditional business, transparency comes from forced audits & regulation.

Decentralized finance is built on chain where all assets are publicly auditable at all times.

EDIT: parent comment talked about decentralized finance, then edited to remove mentions of defi

Re: Binance to acquire FTX

#38

Post by steveBK123 »

This is great, he was lecturing how stock exchanges should work & on the cover of Fortune as the next Warren Buffet all of what.. 8 weeks ago?

SV fintech keeps reinventing all the mistakes of 19th century banking.

BNPL is the next explosion btw.

Re: Binance to acquire FTX

#40

Post by SilverBirch »

You know what this makes me kind of wonder... back earlier in the year SBF made a big show of coming in and investing in a bunch of the companies that were collapsing due to the LUNA/3AC/Celsius problems. He stepped in and to some extent halted the unwinding of some of these issues. It turns out now that it's likely FTX is underwater, and Binance is basically doing the same thing - coming in, picking them up cheap and preventing them from really having to unwind.

So It's perfectly possible this action does the exact same thing as last time - simply stalls the unwinding of this catastrophe, which in the end could possibly even prove Binance insolvent. At the end of the day we just end up in a situation where Binance itself has pricing power over tonnes of coins, and if the market comes back they'll be fine, but if the market continues to slide at some point they won't be able to support the market any more.

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