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Binance to acquire FTX

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Re: Binance to acquire FTX

#701

Post by kgwgk »

oldgradstudent wrote: post #466
danrocks wrote: post #419

Earlier quoted context omitted.

> FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Why would Binance decline this opportunity? If FTX, Binance, and the market knew FTT would just crash, it sounds like a given that Binance should take advantage of the fixed price instead of losing hundreds of millions of dollars "letting the market decide".

It depends on the fixed price offered by FTX. If FTX could pay the current market price, then they could have absorbed whatever Binance sold on the open market. They probably offered a deep discount.

Or maybe they offered to buy it later (when?) at a price fixed today - discounted or not. If they don’t have liquidity (why?) they cannot buy it on the market.

Re: Binance to acquire FTX

#702

Post by ugh123 »

vishnugupta wrote: post #676
sytelus wrote: post #514

Earlier quoted context omitted.

FTX should never been in this position. They are an exchange . Nobody should be able to obliterate them by playing around with their crypto.

I was having this exact conversation with my friends y'day. An exchange marketplace shouldn't be in this position unless they are also participating in the market directly or indirectly through funds, their own and the customers' funds. Customers' assets (either crypto or fiat/USD) should be backed 1:1. The only reason for FTX to pause withdrawals and then assure investors that their money is safe is a sign that they…

Sounds like a crypto ponzi scheme

Re: Binance to acquire FTX

#703

Post by qeternity »

dibt wrote: post #694
firekvz wrote: post #665

What really amazes me about the whole thing is that after celcius and now ftx, tether manages to have peoples' trust and manages to have a bunch of apologists, to the point that in this whole threat there is 0 mention about usdt or tether, while it should at least be mentioned or discussed in here, even tho it has no direct relation, they are the org with most obscure and shady things about them, even the whole busin…

>...What really amazes me about the whole thing is that after celcius and now ftx, tether manages to have peoples' trust... I've never held/used Tether, and that won't change. There's no reason to use it. However, it's worth pointing out that Tether DID go through what FTX is going through right now. They handled it surprisingly well. This article says they had $10 billion redemptions in May: https://www.cnbc.com/202…

> This article says they had $10 billion redemptions in May

This is only impressive if they actually had $10B of cash and equivalents to return/liquidate in that period.

Of course the accusation is that Tether is largely unbacked, and so redeeming $10B of nothing is a lot less impressive.

Re: Binance to acquire FTX

#704

Post by ackbar03 »

pjc50 wrote: post #243
FormerBandmate wrote: post #70

Earlier quoted context omitted.

Binance has serious legal issues (governmental investigations) and isn't based out of any jurisdiction. A Binance failure would have consequences that are very hard to predict

Unless Mr CZ is on the moon, he very much is based out of some jurisdiction. It just might not be extraditable to the US.

Maybe that's why he's been so supportive of musk in his Twitter buyout

Re: Binance to acquire FTX

#705

Post by wklm »

ww520 wrote: post #696
ww520 wrote: post #598

Earlier quoted context omitted.

They are an exchange that allows future trading and margin trading which require borrowing money/assets/coins. The FTT tokens were probably put up as collateral for loans. The drop of the FTT value probably triggers calls on those loans. Thus the liquidity crisis.

Ok. To settle once for all whether FTX is an exchange or not. Below are the services they offer. Futures: ... with margins of up to 101x. Leveraged Tokens: ... up to three times the leverage. ... the leveraged coins offered by FTX don’t require any margin . Options: (standardish). MOVE: ... wager on the price movement ... a play on volatility. Spot Markets: ... more than 100 different spot trading pairs.

It's fine for a trading venue to list all these derivatives, the problem in this case is that the venue and issuer are the same entity. In the trad finance world this is strictly separated.

Re: Binance to acquire FTX

#706

Post by qeternity »

dibt wrote: post #14

https://twitter.com/SBF_FTX/status/1590012133307478016 >Note that http://FTX.us and http://Binance.us – two separate companies–are not currently impacted by this. http://FTX.us withdrawals are and have been live, is fully backed 1:1, and operating normally. I wonder if this means SBF will continue operating FTX.us as a competitor to other US-based exchanges.

Asset custodians operate on trust. FTX has torched its trust. I don’t believe the US entity will be viable going forward.

Re: Binance to acquire FTX

#707

Post by ohgodplsno »

lern_too_spel wrote: post #690
rightbyte wrote: post #499

Earlier quoted context omitted.

I guess people think Mad Max rather than "everything is run by tiny councils" when they think about anarchists.

Anarchy is defined as absence of government and authority, with unlimited personal freedom as a consequence. This is fine if you're living alone, but in groups, you have unbounded externalities. Tiny councils are tiny governments.

If you let your own ignorance define anarchy, sure.

Anarchists simply want every single thing to be voted on by the people, whether through referendum or randomly picked representatives. Anarchists agree that there should be governing bodies (merely that they shouldn't be the ones we have right now, and that they should be more representative and prevent the formation of a political class) and that authority should also be granted by these governing bodies _and_ revokable by the same. Hence, there is nothing an anarchist loves more than voting. It does not prevent living in groups, just that there are no leaders in that group.

By saying it is defined as an absence of government and authority, you're either thinking of ancaps (which are a bad right wing joke made up of said Ayn Rand readers), or dogshit propaganda fed to you. Read a bit.

Re: Binance to acquire FTX

#708

Post by LudwigNagasena »

chx wrote: post #327
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…

> 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 betwe…

Ok, why is this statement not true then:

> There's an awful lot of fancy piled on the simple fact that all "currencies" are negative sum games.

?

Re: Binance to acquire FTX

#709

Post by shapefrog »

xur17 wrote: post #647
fdgsdfogijq wrote: post #500

Earlier quoted context omitted.

Yup, I think this is what happened. And they claimed "it was for the good of the crypto ecosystem", which in part is true. But the reality if SBF aquired because he had to.

Taking that a step further, is Binance doing the same thing?

Without wanting to overdo the "speedrunning 100 years of trad finance" crypto has just replayed 2008.

FTX is playin the role of Bear Sterns and Binance playing JP Morgan. Defi are subbing in for Mortgage bonds, CDOs and synthetic CDOs squared. Margott Robbie can play herself again the the explanation https://www.youtube.com/watch?v=wlHrSZ7BVFI

As with 2008, it is entirely possible that an exchange does what it is meant to do and just happily generates piles of profit for zero risk - taking a percentage of every transaction a bit like ebay. Is that Banance? Or maybe Gemini of Winklevoss fame?

No idea, CZ of binance tweets like he gets this, but who know. SBF tweeted saying they had everyones money but i guess the character limit means he couldnt say the whole statement which really was "we have everyones money ... except for 5-6billion of it"

Re: Binance to acquire FTX

#710

Post by billjings »

3001 wrote: post #403
billjings wrote: post #381

Earlier quoted context omitted.

I went to Georgia Tech with Dare. It's a great school, but it's not exactly the kind of place you send your scions of privilege.

Thats funny, sure going to Gtech for an American as an undergrad doesn't scream privilege but seeing that today the total cost of going to such school will run you around 400k as an international student, while millions of people graduate high school in Nigeria and have to go through the hunger games of Jamb for extremely limited spots due to the lack of investment in education lead by his dad and cohorts tells a dif…

It's not because of the price point that you wouldn't send your overpriveleged kid there. It's because they'd run a decent chance of flunking out.
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