Might be the first hostile takeover via crypto...
Binance to acquire FTX
101–110 of 790 posts
Re: Binance to acquire FTX
#102Earlier quoted context omitted.
> 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...
Nowhere does it say that FTX invested in Alameda. Alameda invested in FTT which is minted by FTX which is not the same thing.
> Alameda invested in FTT which is minted by FTX
FTX issued FTT to Alameda. We have no idea what Alameda gave them as collateral, but it's clear it wasn't cash. Lending is a form of investing. (I don't get what unlocked versus collateral FTX on Alameda's balance sheet means.)
Re: Binance to acquire FTX
#103SBF 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.
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Re: Binance to acquire FTX
#104Anyone here remember when SBF was offering Elon Musk a billion dollars to help him buy Twitter? What the hell was he thinking?
Re: Binance to acquire FTX
#105It's a pyramid all the way down. So surely when there's only 1 exchange left standing, who is going to catch it when it falls?
Pretty sure the last remaining counterparty will be the mysterious and shadowy ▯ ▯ ▯ ▯, ▯ ▯ of Elbonia.
Re: Binance to acquire FTX
#106Earlier quoted context omitted.
FTX needs cash right now and either Binance will provide it right now or they won't.
It seems withdrawals are halted, and there is no clarity of weather or not they have resumed after the announcement. Without withdrawals FTX will loose in importance and value every single hour. It is hard to build trust as a crypto exchange, but it is very easy and can be quick to lose it.
> It is hard to build trust as a crypto exchange
Iunno, it seems a lot easier than I ever expected
(I don’t run one, just observing others)
Re: Binance to acquire FTX
#107I’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's ceo also runs a prop trading firm which is the real source of his wealth. FTX loaned the trading firm billions of its own token FTT. FTX also gave binance billions of dollars of FTT because binance invested in them. Over the weekend FTX's ceo and Binance's ceo got in a fight on twitter and binance sold all of their FTT which collapsed the price. FTX's assets are tied up in the loans to their trading firm which are denominated in the now essentially worthless FTT and so they can't convert the FTT to cash which means can't process withdrawals.
Re: Binance to acquire FTX
#108Earlier quoted context omitted.
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.
Their stock value is down, but they still are financially solvent. Lehman didn't explode when it fell from $60 to $6, it exploded when it went bankrupt. They're a lot closer to it now then a year ago, however
they are losing like what, $700 mil a year? with the current cost of capital, probably not solvent for very long.
Re: Binance to acquire FTX
#109Lots of stuff changed since the Middle Ages, antibiotics took the place of leeches, we know that the Earth revolves around the Sun, we can take pictures of Black Holes...
What hasn't changed is that given the opportunity everybody wants to be a banker, invest other people's money and pocket the difference.
Re: Binance to acquire FTX
#110Anyone here remember when SBF was offering Elon Musk a billion dollars to help him buy Twitter? What the hell was he thinking?
He was probably thinking the offer would leak and give him publicity, which it did.