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Binance to acquire FTX

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Re: Binance to acquire FTX

#221

Post by rhaway84773 »

spuz wrote: post #90
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…

Remember that blockchain transactions are slow and FTX has over 1m users. Even in the most positive of scenarios, I would not be surprised if it took days to clear the backlog of withdrawal requests.

“How to destroy the entire basis for blockchain technology in 1 sentence”.

Re: Binance to acquire FTX

#222

Post by [deleted] »

kristjansson wrote: post #160

Why is it apparently so difficult to run a solvent crypto exchange? On the face, it shouldn't be too hard, just take deposits, stick them in a wallet, and swap client balances in a database. Is the temptation to maintain a reserve ratio < 1 just too great? Do operators try to earn small, low-risk return on client funds only to find there are no low-risk, positive-return assets in crypto? Are the extending margin to c…

[deleted]

Re: Binance to acquire FTX

#223

Post by yieldcrv »

gowings97 wrote: post #213
kuratkull wrote: post #119

Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…

Quoted post unavailable.

Okay, random non sequitur

This isnt a thread about stablecoins

Re: Binance to acquire FTX

#224

Post by rhaway84773 »

yucky wrote: post #183
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…

If everybody walked into their bank right now to withdrawal, they couldn't cover either. Right?

And that’s why banks are heavily regulated and get protections.

If FTX wanted protections against a bank run they could also choose to be regulated as a bank.

Cryptocons want us to both treat crypto scams as banks and not banks depending on what suits them in the moment, just like they want us to treat cryptocurrencies as assets or currencies based on what suits their argument in the moment.

All to hide the fact that it’s a mediocre technology which has been surpassed by many other technologies for most of its possible uses and is nothing more than a Ponzi scheme designed to enrich its original backers.

Re: Binance to acquire FTX

#225

Post by tommek4077 »

purple_ferret wrote: post #208
kuratkull wrote: post #119

Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…

Binance continues to amaze. Does anyone even know where it operates out of these days?

The fabric of the internet.

Re: Binance to acquire FTX

#226

Post by rhaway84773 »

SilverBirch wrote: post #40

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 an…

This is the crypto ponzi falling apart. First the smaller ponzis fall apart so the larger ponzis need to step in so the fact that the entire thing is one big Ponzi doesn’t get fully exposed.

The Ponzi falling and subsequent cover up by the bigger Ponzi keeps going up the chain until those at the top of the Ponzi food chains collapse.

Right now it looks like that might be Binance.

Re: Binance to acquire FTX

#227

Post by espadrine »

kristjansson wrote: post #160

Why is it apparently so difficult to run a solvent crypto exchange? On the face, it shouldn't be too hard, just take deposits, stick them in a wallet, and swap client balances in a database. Is the temptation to maintain a reserve ratio < 1 just too great? Do operators try to earn small, low-risk return on client funds only to find there are no low-risk, positive-return assets in crypto? Are the extending margin to c…

Storing money costs money: at least the bank fees, if not the negative interest rates.

Processing money costs even more money: operations must be scrutinized, international movements require validation and communication, and various AML/CFT/Fraud procedures must perform investigations etc. You have accounts in various currencies, perform conversions to maintain liquidity…

So I can see why they would start dipping their toes into investments. Once they start, they probably don’t consider enforcing Basel III to their procedures, and things just unfold.

Re: Binance to acquire FTX

#228

Post by rhaway84773 »

searchableguy wrote: post #98
idiotsecant wrote: post #84

Earlier quoted context omitted.

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.

All the more reason for them to go down sooner rather than later because they’re eventually gonna go down, so better now where they will have less impact outside the crypto world than they would a few months or years later.

Re: Binance to acquire FTX

#230

Post by ForHackernews »

kuratkull wrote: post #119

Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…

> smells like Binance played 4D chess all along

It's not really "4D chess" to screw over your competitor to corner the market.

That's like, business 101.

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