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Binance to acquire FTX

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Re: Binance to acquire FTX

#321

Post by joyfylbanana »

theptip wrote: post #231
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 marke…

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

These should be quite possible, no? Exchanges have mainteinance pauses now and then, however if they had them regularly that would drive customers away. Unwinding transactions inside crypto exchanges is also not unheard of I think.

Re: Binance to acquire FTX

#322

Post by drexlspivey »

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.

There is a time delta between the statements, assets worth $10B on one day could be worth $5b the next

Re: Binance to acquire FTX

#323

Post by conductr »

jonas21 wrote: post #275
TravelTechGuy wrote: post #201

Some 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…

For those not up to date on crypto people, SBF is Sam Bankman-Fried [1] and CZ is Changpeng Zhao [2]. I don't know why they insist on being called by their initials like they're some sort of ticker symbol. [1] https://en.wikipedia.org/wiki/Sam_Bankman-Fried [2] https://en.wikipedia.org/wiki/Changpeng_Zhao

DPR fans?

Re: Binance to acquire FTX

#325

Post by squokko »

This entire market sector creates nothing of value: the way to parse this is something like "Daniel Negreanu wins $15 billion pot against Phil Ivey in non-televised hand."

Re: Binance to acquire FTX

#326

Post by reducesuffering »

Scoundreller wrote: post #118
55555 wrote: post #104

Anyone here remember when SBF was offering Elon Musk a billion dollars to help him buy Twitter? What the hell was he thinking?

Are you sure they didn’t make the deal?

Yes, SBF didn't get a stake: https://danluu.com/elon-twitter-texts/#equity-financing-comm...

Re: Binance to acquire FTX

#327

Post by chx »

shapefrog wrote: post #26
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…

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…

> it was a lie the whole time.

how many of these y'all need before you learn: all crypto is a scam. It never was anything else, it never will be anything else because it can not be anything else.

There's an awful lot of fancy piled on the simple fact that all crypto"currencies" are negative sum games. The only disagreement is whether this is an entirely new type of scam , a "Nakamoto Scheme" or the difference between these and the classic Ponzi are irrelevant like the difference between a CRT and a HDTV and then we are looking at a Ponzi.

Re: Binance to acquire FTX

#328

Post by snapcaster »

epa wrote: post #114
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.

It seems that Citadel may have short squeezed FTX's token and created this.

Please don't tell me you own GME stock and blame Ken Griffin for everything bad that has ever happened. Can't you people just stay in your subreddits?

Re: Binance to acquire FTX

#329

Post by lottin »

mistercheph wrote: post #96
ramish94 wrote: post #31

Earlier quoted context omitted.

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.

What do you mean illiquid? Worthless?

Re: Binance to acquire FTX

#330

Post by Jommi »

k2enemy wrote: post #269
pjc50 wrote: post #239

> whatever smidge of trust Turns out the "trustless" in crypto means "you can't trust anyone".

Also turns out that "decentralized" in practice means "centralized"

in which part of this discussion has anyone talked about something decentralized? This is about two centralized exchanges that hold custody of users cryptoassets
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