SBF yesterday: "FTX is fine. Assets are fine." Can't trust a word out of this guy's mouth.
Funds are Safu -Bizonacci
Binance to acquire FTX
341–350 of 790 posts
Re: Binance to acquire FTX
#342Earlier quoted context omitted.
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
Because they think the people they're most similar to are respected old-school hackers (rms, jwz, etc.) instead of carnival hucksters like P. T. Barnum.
i can just imagine jwz squirming at the idea of this and it is way too funny...
Re: Binance to acquire FTX
#343Earlier quoted context omitted.
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
It’s common in many internet circles to refer to prominent people by their initials. Hackerdom has a long tradition of this: rms gls esr jwz et al. It also tends to happen in US federal politics for some reason (jfk rfk gwb fdr et al) but not to everyone.
At least the political ones (some) came about for clarification (JFK and RFK are both Kennedies, GWB is to distinguish from "Bush"). Others come from their names being long or hard to remember/pronounce/spell (I suspect this is what happened with AOC).
Re: Binance to acquire FTX
#344All of these folks need to be in prison along with Andreeson Horowitz. All bloody crooks the lot of them. The largest ponzi scheme in the history of humanity and they wonder why the world is not getting better.
Did AH take money from retail investors? I suppose you can claim they pumped these products. I'm not convinced it's any different than what happens with an IPO that started with VC money. I'm not saying it's good, just that it's as bad as anything that's regulated.
https://www.youtube.com/watch?v=kSXQgCP3WQw&t=1620s A good explanation on how these schemes usually work out.
Re: Binance to acquire FTX
#345I'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
That experiment already failed to be honest. Cryptocurrencies were prophesized to get rid of banks. Instead exchanges reinvented banks with all the drawbacks and none of the benefits. Cryptocurrencies were supposed to be in wide circulation just like USD, eliminating the need for fiat on/off ramps. Instead we got these centralized corporations and endless KYC/AML surveillance with none of the regulation and governmen…
Only about 10% (2M) of bitcoin are on exchanges: https://www.coinglass.com/Balance
Re: Binance to acquire FTX
#346Earlier quoted context omitted.
> 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…
> 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 Normal markets aren’t as centralised as crypto. The exchange and market maker are separate.
It's pretty uncommon for exchanges to do all their market making directly, and many of the ones that do still rely on outside market making.
FTX was almost the exception since Alameda spun out of it IIRC
Re: Binance to acquire FTX
#347I'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
Ha! One massive feudal lord just crushed another and all the serfs lost their money. This isn’t anarchy, it’s a monopoly
I wouldn't be so sure. The monopolist had a $100,000,000 theft last month, [1] after a $1 billion dollar loss from LUNA in the summer. [2]
[1] https://www.nytimes.com/2022/10/07/business/binance-hack.htm...
[2] https://decrypt.co/100530/binance-ceo-says-exchange-never-so...
Re: Binance to acquire FTX
#348Earlier quoted context omitted.
> 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 Normal markets aren’t as centralised as crypto. The exchange and market maker are separate.
It's pretty uncommon for exchanges to do all their market making directly, and many of the ones that do still rely on outside market making. FTX was almost the exception since Alameda spun out of it IIRC
> pretty uncommon for exchanges to do all their market making directly
Point is, in real finance, it's pretty uncommon for exchanges to do any of their market making. Largely to ensure they can project confidence in crises. Market makers blow up. Exchanges shouldn't.
Re: Binance to acquire FTX
#349Earlier quoted context omitted.
> 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…
> 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 Normal markets aren’t as centralised as crypto. The exchange and market maker are separate.
This is just not the case. At least on Binance there are number of market makers other than Binance itself and there is a lot of tech built around this. I guess every major crypto exchange after MtGox is as complex as normal markets.