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Binance to acquire FTX

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471–480 of 790 posts

Re: Binance to acquire FTX

#471

Earlier quoted context omitted.

I never understood. Where's the democracy here, exactly? A regular user cannot afford to participate in the decision making of the system in any meaningful way. In fact, today, most users don't even directly use it, instead relying on processors such as Coinbase. The "not your keys, not your coins" meme exists due to this. The original paper described a democratic system where people voted with their processors, but…

Arguably a lot of discussion is open to anyone (Bitcoin mailing list, Core github repo), where anyone is free to post their opinion on topics themselves. It is not democratic as in "you have a vote to force others to comply to the majority", but more a democratic in "you can try to convince enough people that the major chain becomes how you like it, while the others run a minority fork". People think "where the money…

> "you can try to convince enough people that the major chain becomes how you like it, while the others run a minority fork".

FWIW, that is also true for fiat. You can become an economist, or a journalist, or a politician, or a pundit, and try to convince your country to do economics differently. It's a tall order, but it's been known to succeed. If this seems harder than the equivalent for blockchains, it's only because cryptocurrencies have much fewer users, so your voice seems more powerful.

Re: Binance to acquire FTX

#472
post #428

Earlier quoted context omitted.

> "you have a vote to force others to comply to the majority" is less terrifying to you?

What you're arguing for is "you have a vote (well you don't, but people much richer than you do) to force others to comply to a very small minority", how is that better than majority rule?

Well there are no votes, so you can't force anyone to run anything. You run what you like and hope others do as well. As I said miners follow users, not companies.

Re: Binance to acquire FTX

#473
post #303
post #143

Earlier quoted context omitted.

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.

Just went over the issues on the balance sheet of Alameda Research, which is SBF's trading company. Of the $14.6 billion assets Alameda manages, almost $6 billion is FTT based. Alameda has heavy investment in Solana, Serum, and other alt-coins. It looks like the drop in their value has lowered Alameda's asset balance. Alameda borrowed FTT tokens from FTX to put them as assets in the balance sheet to shore it up. The…

> FTX issues FTT tokens (print money) => lends to Alameda to put under the asset balance => Alameda borrows money from outside against its assets or uses the asset/coins to invest in others => win with thin air!

The Federal Reserve issues US dollars (print money) => US Treasury borrows money from The Federal Reserve, Japan, China and the UK against its assets or uses the asset/coins to invest in others => win with thin air!

Re: Binance to acquire FTX

#474
post #283

"We’re going to look back at a generation of successful founders and VCs with the realization that all of their talent was in creating a company during the bull market." - random tweet I came across that's very relevant here.

There was an entire book about this that became famous during the 2008 financial crisis: Fooled by Randomness by Nassim Taleb https://www.amazon.com/Fooled-Randomness-Hidden-Markets-Ince... It's literally about how options traders and the like can be lucky for 10 or 20 years, but they are actually idiots who destroy the economy. They think they are skilled, and others think they are skilled, but it's luck. You can al…

Great book. It was my introduction to Taleb as well It profoundly shaped how I interpret markets and approach my own investments.

Re: Binance to acquire FTX

#475
post #394

Earlier quoted context omitted.

https://fortune.com/2022/05/23/record-number-american-househ... That wouldn't be a problem for the majority of Americans

If you go over $250k, you can just open accounts at other banks to keep being insured. Or get your own insurance I suppose.

My point was that if many would struggle to put together $400 in cash, they’re likely unaffected by a $250k upper limit on insured deposits

Re: Binance to acquire FTX

#476
post #380

Earlier quoted context omitted.

Banks say that they don't invest deposits?

In the Glass-Steagall sense, they probably shouldn't. Mixing commercial banking and investment banking was illegal from 1933-1999, and it is (arguably) one of the underlying factors in the 2008 financial crisis. Note: There's a difference between being a custodian of customers' investments (brokerage / commercial banking) versus proactively investing customer deposits (investment banking).

Banks lend deposits. That's how they make their money. They have to keep some part of the deposits as a reserve.

Real regulated banks have access to the Fed to borrow in a case of a bank run.

Re: Binance to acquire FTX

#477

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.

Market manipulation is not exactly business 101.

Re: Binance to acquire FTX

#478
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…

You forgot 8 hours ago: Hacker News commenters are in total denial:

https://news.ycombinator.com/item?id=33518961

Re: Binance to acquire FTX

#479
post #168

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! That's next level Ad Hominem & Genetic fallacies

Re: Binance to acquire FTX

#480

Earlier quoted context omitted.

Even without the edit, your response feels like a no-true-scotsman i.e. an attempt to remove bad actors who deal in decentralized cryptocurrencies from the purity that is defi. What are some large, successful defi organizations today?

I don't see at all how you can say calling out literally centralized companies as "not-decentralized" is no-true-scotsman. It's just an obvious fact. > What are some large, successful defi organizations today? In my opinion, if there is an organization behind it then it is, by definition, not decentralized. Yes, even the ones that operate fully on-chain.

>literally centralized companies as "not-decentralized"

So defi is only 100% decentralized everything, even if the financial tools are decentralized? That feels like an appeal to purity if ever there were one.

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