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Binance to acquire FTX

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Re: Binance to acquire FTX

#51

Post by shapefrog »

ramish94 wrote: post #31
shapefrog wrote: post #26

Earlier quoted context omitted.

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.

“we’ll clear out liquidity crunches” - they have everyone’s money if they get more money from someone else.

Re: Binance to acquire FTX

#53

Post by JumpCrisscross »

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…

> SBF said "We don't invest client assets (even in treasuries)"

We know that was false when it was said, given the Alameda balance sheet. (FTX invested in Alameda which made risky loans to crypto folks and bought FTT, which FTX minted [1].)

[1] https://www.coindesk.com/business/2022/11/02/divisions-in-sa...

Re: Binance to acquire FTX

#54

Post by boeingUH60 »

"We’re going to look back at a generation of successful founders and VCs with the realization that all of their talent was in creating a company during the bull market." - random tweet I came across that's very relevant here.

Re: Binance to acquire FTX

#55

Post by shapefrog »

JumpCrisscross wrote: post #15
datalopers wrote: post #12

Earlier quoted context omitted.

CZ triggered it, destroyed FTX, and now gets to be the hero.

> CZ triggered it Binance called attention to the weakness. The underlying issues were all caused by FTX.

I cant believe that horrible charity triggered the collapse of Bernie Maddoff by asking for their money back.

Re: Binance to acquire FTX

#56

Post by steveBK123 »

mamonster wrote: post #49
steveBK123 wrote: post #38

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.

BNPL has already exploded though, but good call. Klarna is down about 90% in the private markets, Affirm about the same from all time high. Another good candidate is "AI-powered" insurance i.e Lemonade.

ZIRP is a hell of a drug. There's not a lot of innovation to be had on lending that is actually going to be considered legal. Unless they obfuscate it with AI, they are going to run afoul of some sort of anti-discriminatory laws.

Credit score&history, income, capital.. go.

Most of what BNPL actually turned out to be was just dumb money.

Re: Binance to acquire FTX

#58

Post by thepasswordis »

I am extremely bullish on crypto, and have been for the last decade.

That said: the sooner we can get rid of these weird centralized exchanges and weird messiah figures the better.

The next thing I thing will explode is Cardano, which appears to function approximately like a cult, with no actual product (as far as I can tell).

Ethereum, LINK, and Bitcoin. Everything else is a distraction.

Re: Binance to acquire FTX

#59

Post by JumpCrisscross »

ramish94 wrote: post #17

I’m a little ignorant to the whole crypto ecosystem, so can someone give me a quick rundown on the chain of events that led to this? Seems a little out of left field. BTX, from the outside looking in, looked to be one of the more well run, stable crypto exchanges. $1.02 billion in revenue with $388M in net income in 2021. They didn’t go on any crazy hiring spree when they didn’t have to. Liquidity crisis implies that…

FTX bet customer funds through the CEO’s hedge fund on an FTX token [1]. The token price fell when this was revealed [2].

The hedge fund, and thus FTX, had less money than they owed lenders and customers. FTX found a bail-out in Binance; otherwise everyone would have lost their money.

[1] https://www.coindesk.com/business/2022/11/02/divisions-in-sa...

[2] https://www.coindesk.com/markets/2022/11/08/ftt-plummets-as-...

Re: Binance to acquire FTX

#60

Post by skippyboxedhero »

max_ wrote: post #42
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…

Now it is clear that he was lying. They stopped processing withdrawals according to on chain data.[0] [0]: https://www.theblock.co/post/184176/ftx-appears-to-have-stop...

They have one BTC. Form an orderly queue to receive your portion.

https://www.coindesk.com/business/2022/11/08/ftxs-bitcoin-ba...

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