> whatever smidge of trust Turns out the "trustless" in crypto means "you can't trust anyone".
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Binance to acquire FTX
551–560 of 790 posts
Re: Binance to acquire FTX
#552Who knows, i’m just going to rant that
I never got into it, i heard about it right at the start, started looking into it, like maybe do it like i used to let idle time on seti. Maybe now i’d be a billionaire. It would seem like an odd way to be one.
But i got put off it right away by libertarian conspiracy believing types, always knew way more than me about the secret machinations of the world that are forever kept free from us, and of course, they knew something i didn’t, this secret knowledge was given away for free if you knew the right people.
In a way, i credit them with a renewed interest in programming, as this guy told me about writing a twitter bot to pump gold whenever they’re idol told them too, i did actually think to myself, this guy thinks they’re a programmer when they repurposed a script while i can actually write useful apps, so i’ll give them that.
Re: Binance to acquire FTX
#553Earlier quoted context omitted.
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.
And FDIC to de-risk customers from feeling they need to do a bank run.
Re: Binance to acquire FTX
#554Earlier quoted context omitted.
Matt Leving from Money Stuff discussed it today (!). If exchanges provide leverage products to customers, they become banks (providing leverage, through funding typically by other customer's deposit). So bank runs are possible.
> exchanges provide leverage products to customers Levine spoke about brokerages. When brokerages extend credit, they can be subject to run dynamics. Not exchanges.
crypto "exchanges" are almost all structurally identical to brokerages
Re: Binance to acquire FTX
#555Can we perhaps take this opportunity to pour one out for Matt Levine? I can't think of any writer/journalist who can bring an often esoteric topic like present day financial shenanigans to life with such clear, intuitive and bitingly funny writing. His coverage of the whole Elon/Twitter saga alone is second to none.
Re: Binance to acquire FTX
#556Earlier quoted context omitted.
- Long term "Savings account" - a volatile one, of course - I buy stuff from online with it, household items (In country I live you can basically buy anything with BTC) - Travel, I book hotels/flight with it and once I rented a boat for a family trip In addition to that I now and then try to pay with Bitcoins at other stores. Last time got excited about boltcards ( https://github.com/boltcard/boltcard ) there are few…
What country is that, if you don't mind sharing? It's the first time I hear this
I suspect one whose own banking system is on par with BTC risk-wise. (Apologies to gp if that was clueless, it just comes to mind first.)
Re: Binance to acquire FTX
#557Earlier quoted context omitted.
> 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 makes absolutely no sense and is not how markets work. If FTX was actually willing to buy unlimited FTT at a given price, Binance could not have "crashed the price" by selling be…
My assumption when reading the quote was that it would be an off-market transaction. Similar to how stocks can be traded in Dark Pools outside of the regular stock market.
Their point is that if you have the money to buy $1.1B of something off market, you should also have the money to buy $1.1B of something on market. Any time someone posts an ask at or below $22, you simply fill the order.
Re: Binance to acquire FTX
#558Re: Binance to acquire FTX
#559This is great, he was lecturing how stock exchanges should work & on the cover of Fortune as the next Warren Buffet all of what.. 8 weeks ago? SV fintech keeps reinventing all the mistakes of 19th century banking. BNPL is the next explosion btw.
Found it: Speaking with the Financial Times on July 14, Bankman-Fried stated that if FTX can become the top crypto exchange and supplant rivals such as Coinbase and Binance, the idea of purchasing giants such as Goldman Sachs and CME group is not off the table: “If we are the biggest exchange, [buying Goldman Sachs and CME] is not out of the question at all.” https://cointelegraph.com/news/billionaire-sbf-says-ftx-ma…
Any crypto exchange posturing buying out the likes of Goldman or CME are obviously doomed to fail. There's a fundemental difference between having courage and being down right lunatic, SBF definitely falls in the latter...
Re: Binance to acquire FTX
#560Earlier quoted context omitted.
Banks don't have cash on hand equal to assets either...
The CEO of a band has never say they have everyones money sitting in the safe waiting for them to pick it up whenever they wanted it. FTX CEO litterally said that in his tweet.
It’s pretty clear now it a last ditch Hail Mary effort to save them from a bank run that would ruin them