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.
Binance to acquire FTX
271–280 of 790 posts
Re: Binance to acquire FTX
#272Binance 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.
Winning an evenly matched game of prisoner's dilemma with billions at stake is about as close to 4D chess there is.
Re: Binance to acquire FTX
#273Binance 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…
Isn't FTT like FTX's own issuing tokens? It's like printing one's own money. But when the backing firm fails, the printed money is worthless, just like what LUNA issued by Terra had become.
Re: Binance to acquire FTX
#274Re: Binance to acquire FTX
#275Some more background: the companies were engaged in fighting over regulations, and on a personal basis between the 2 CEOs. It went down to really childish levels at some point. But one thing is undeniable: SBF (FTX CEO) was trying to weaponize US regulation against his biggest rival CZ (Binance CEO). CZ retaliated by selling the FTT token, exposed the fact FTX was over-leveraged, and took over. This is, as the kids o…
Re: Binance to acquire FTX
#276What will happen to Binance in a few months if the system is now unwinding? That's the question right, if it's a system problem or FTX was greedy and over leveraged. For me it smells like a system issue because it's all based on funny money.
Re: Binance to acquire FTX
#277Binance 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?
They got regulatory approval to operate in Dubai and have offices there, so maybe there (https://www.coindesk.com/policy/2022/09/20/binance-secures-l...)
Re: Binance to acquire FTX
#278I'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
Rest assured that the regulations are coming because the crypto simply did a speed-run of unregulated securities market and repeated every fraud or scam that the traditional markets went through over the history. In the process, huge fortunes were created and libertarians were empowered(but not enough to be the main political power). Congrats to them but there's nothing anarchist left in crypto, they even end up cons…
The Fed sure isn't without its issues, but it was created to solve the exact problems that we're now seeing proliferate via the crypto space.
Re: Binance to acquire FTX
#279Earlier quoted context omitted.
> nothing but a good old bank run Exchanges aren't subject to bank runs. If an exchange (or even broker) cries run, they were taking novel risks.
They aren't brokerages, they're banks pretending to be exchanges. They do fractional reserve banking with user deposits.
Nobody backstops FTX or any other crypto exchange so its better described here as 'the yolo lifestyle'.
A modern day bank run in traditional finance is functionally impossible* (up to the FDIC insurance limits, and often higher in practice - there were no imposed limits at WaMu for instance).
Re: Binance to acquire FTX
#280Earlier 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?
How many bank runs have there been in 2022 in the developed world?
The reason people don't try to pull their money out all at once is because their deposits are insured, because their bank pays into an insurance pool.