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Binance to acquire FTX

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Re: Binance to acquire FTX

#93

Post by edouard-harris »

pranshum wrote: post #33
jo6gwb wrote: post #32

SBF yesterday: "FTX is fine. Assets are fine." Can't trust a word out of this guy's mouth.

"Every banker knows that if he has to prove he is worthy of credit, in fact his credit is gone." - Bagehot

Indeed. And in this case, it was from one day to the next.

Re: Binance to acquire FTX

#95

Post by Yizahi »

mjr00 wrote: post #4

So after SBF came out yesterday and said FTX was totally fine.. it turns out they were insolvent and needed to get bailed out to cover withdrawals? Never a dull moment in the world of crypto.

No post body was provided.

Re: Binance to acquire FTX

#96

Post by mistercheph »

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.

Giving them the benefit of doubt, this is not a contradiction. The statement means that they have enough illiquid assets to cover the withdrawal that they are working on converting into liquidity.

Re: Binance to acquire FTX

#98

Post by searchableguy »

idiotsecant wrote: post #84
FormerBandmate wrote: post #70

Earlier quoted context omitted.

Binance has serious legal issues (governmental investigations) and isn't based out of any jurisdiction. A Binance failure would have consequences that are very hard to predict

I'm not sure that binance has a reason to exist in the current world where defi is a thing. Things like Coinbase etc are your place to go if you want a fiat to crypto on-ramp or off-ramp or if you want a reasonably safe place to park crypto if you don't want to own it yourself. There are innumerable decentralized exchanges where a person can be absolutely (for some definition of the word) sure that the exchange won't…

Binance is the biggest exchange by a huge margin. It dwarfs coinbase and FTX.

They are also huge investors in crypto and any winding up will have an impact on a significant number of companies.

They control a significant portion of stablecoin, defi, and chain market too.

Their impact would be felt outside the crypto space if they ever go down.

Re: Binance to acquire FTX

#99

Post by drak0n1c »

throwaway4good wrote: post #18

So wouldn't this trigger and potentially be blocked by CFIUS? Given Binance's Chinese roots and the general anti-China sentiment in US politics. Here is an article about the twitter acquisition also with Binance/CZ onboard - this would similar or worse, no?: https://www.brookings.edu/research/the-national-security-gro... The national security grounds for investigating Musk’s Twitter acquisition

CZ has shut down the China branch, and was essentially banned since their crypto crackdown. He has been publicly critical of the CCP government too. The gov may not have much leverage over him.
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