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Binance to acquire FTX

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Re: Binance to acquire FTX

#231

Post by theptip »

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…

> Why is it apparently so difficult to run a solvent crypto exchange?

Running a stock exchange is a hard business too; you are the market maker, you set the spread, and the most sophisticated investors in the world are trying to arbitrage you. Any mistake can potentially ruin you. If you do you job right you take a tiny sliver of profit from each transaction.

Now consider crypto, where your ability to pause the market or unwind clearly-erroneous transactions is reduced or removed.

Sounds excruciatingly hard to me.

Re: Binance to acquire FTX

#232

Post by ForHackernews »

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…

It's all lies. Just like everything else involving cryptocurrency.

Re: Binance to acquire FTX

#233

Post by andirk »

majani wrote: post #216

I'm glad a big government supporter such as SBF is out of crypto leadership. Crypto is an anarchist experiment and it should remain that way

Why not both? Centralized where people trust, decentralized where people don't trust. In my interpretation, the Bitcoin white paper states that BTC is an answer to _the lack of regulation_ that allowed the fat cats to abuse the money supplies. It's kind of ironic, but to see crypto as purely anarchistic is to ignore that it is essentially _democratized_ money. Both: I use exchanges as well as cold storage.

Re: Binance to acquire FTX

#234

Post by andirk »

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.

I earned $1,200 from Gemini's stablecoin GUSD's interest last year. Withdrew the extra and bought some nice pendant lights for my new kitchen.

Re: Binance to acquire FTX

#235

Post by lern_too_spel »

majani wrote: post #216

I'm glad a big government supporter such as SBF is out of crypto leadership. Crypto is an anarchist experiment and it should remain that way

> Crypto is an anarchist experiment

And, like every anarchist experiment before it, it failed. It continues to draw in new suckers every day, and that is a problem for society.

It doesn't matter if you didn't cause the problem. Because you live in that society, you still have to pay the cost to fix it or continue to take the losses from the problem existing.

It's the same with slavery, not educating blacks, and then not employing blacks in America. I had nothing to do with it. My family had nothing to do with it. But because I live in America, I have to either pay the cost to fix the problem or pay the ongoing cost of crime that the problem produces. Taking on the cost of problems others created is the cost of living in society, just as benefiting from the value that others create is the benefit of living in society.

The time to regulate crypto and cut our future losses was yesterday.

Re: Binance to acquire FTX

#236

Post by rhaway84773 »

skippyboxedhero wrote: post #63
mamonster wrote: post #49

Earlier 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.

Insurance is already "AI-powered"...insurance companies employ statisticians to build prices, and they have been using low-cost distribution since the 90s. Speaking generally, insurance was one of the first industries to deploy technology effectively in their core business. They are still doing that. The issue with companies like Lemonade is that they are rebranding the same product as "AI" (afaik, Lemonade is just t…

This. I’m not sure what Lemonade does differently from other insurers than providing a nicer UI.

They likely also have lower costs due to eliminating the middle men whose job is to translate text on the screen into words spoken to a customer.

So their lower costs could actually be legitimate.

Re: Binance to acquire FTX

#237

Post by oldgradstudent »

pranshum wrote: post #10
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.

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

They claim to be an exchange, not a bank, not investing user assets.

https://twitter.com/SBF_FTX/status/1589598285798707202

The Bagehot quote is not SUPPOSED to apply.

Re: Binance to acquire FTX

#238

Post by rhaway84773 »

skippyboxedhero wrote: post #61
anonu wrote: post #36

Earlier quoted context omitted.

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.

The Superbowl ad curse.

Lots of crypto cokpanies that did not advertise in the Super Bowl or whose founders were not profiled by Forbes or Fortune have also collapsed.

Re: Binance to acquire FTX

#240

Post by MaxHoppersGhost »

3001 wrote: post #168
billjings wrote: post #62

Earlier quoted context omitted.

Dare Obasanjo: https://twitter.com/Carnage4Life/status/1589867071693017088

Total unrelated but son of https://en.wikipedia.org/wiki/Olusegun_Obasanjo . Numero uno looter of Africa

Wow. I like how his son’s Twitter profile talks about inclusivity. Very brave.
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