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Binance to acquire FTX

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Re: Binance to acquire FTX

#711

Post by [deleted] »

eru wrote: post #693
stale2002 wrote: post #664

Earlier quoted context omitted.

> As long as noone is being lied to That is exactly what is happening. There is lots of lies being told, with no transparency, and then people's money disappears. Instead of that, if people money disappears, we should arrest the people who made it disappear.

No argument from me there. I was just narrowly addressing the point in stale2002's comment. Though to be honest, it is well known that the long term fate of any crypto exchange is to go bust. So no one could really claim that they didn't know it was coming. Crypto is glorified gambling. (At least so far. In principle, crypto can mature over time into something more serious.)

[deleted]

Re: Binance to acquire FTX

#712

Post by helsinkiandrew »

sytelus wrote: post #514
kuratkull wrote: post #119

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…

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

They're more a brokerage than an exchange - you can buy Bitcoin and Eth leaveraged at 20-1 through their perpetual futures. Whilst these are presumably hedged - FTX are still taking on risk.

https://ftx.com/markets/futures

https://help.ftx.com/hc/en-us/articles/360024780511-Futures-...

Re: Binance to acquire FTX

#713

Post by MrPatan »

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…

> How long before SEC/regulators wake up and regulate these shadow-banks disguised as exchanges as other exchanges?

Very long in this case, as SBF was the biggest donor to the Biden campaign.

Last few weeks he was even trying to involve himself in writing the regulations he wanted, trying to kill DeFi and make it comfy for himself against other CEXes, no doubt.

Some people say that's what triggered CZ to act.

And now the whole of FTX and $8 buys you a mosquito net, what a world.

Re: Binance to acquire FTX

#714

Post by mamonster »

boppo1 wrote: post #437
mamonster wrote: post #49

Earlier quoted context omitted.

BNPL has already exploded though, but good call. Klarna is down about 90% in the private markets, Affirm about the same from all time high. Another good candidate is "AI-powered" insurance i.e Lemonade.

How do you keep track of private markets? Are you involved in the business?

Well the place where I work at has a PE/VC arm that unfortunately decided to invest in Klarna sometime in 2021(not my call and not my loss), so naturally this year when it took a huge markdown, I became aware of it.

To track private markets you either need to basically know someone in VC/PE and just ask for a specific company you are interested in, or use something like Pitchbook. The first option is much better, as you can get an estimate of prices even when deals aren't getting done(i.e a VC/PE person can tell you how much they would pay for X company even when X company isn't raising).

Re: Binance to acquire FTX

#715

Post by 55555 »

chaosbolt wrote: post #620
Aaronstotle wrote: post #162

Earlier quoted context omitted.

I don't understand how his middle name relates to anything about this situation.

It's an obvious joke a 3 year old kid would understand, if that kid didn't value signal by implying someone was an antisemite because of an unrelated joke that is.

For sure. I don't even think Bankman is jewish -- that's the Fried half.

Re: Binance to acquire FTX

#716

Post by oldgradstudent »

MrMan wrote: post #547
microtherion wrote: post #497

Earlier 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…

FTX was not actually willing to buy, they are suffering from reduced capital position so they were bluffing

> reduced capital position

Sounds like a euphemism to me.

Re: Binance to acquire FTX

#717

Post by wslh »

boeingUH60 wrote: post #54

"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.

"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.". I would add: "and tweeting all day".

Re: Binance to acquire FTX

#718

Post by oldgradstudent »

kgwgk wrote: post #701
oldgradstudent wrote: post #466

Earlier quoted context omitted.

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.

Illiquid means you can't sell your position without lowering the price significantly.

It could be that you need time to sell, or it could be that no one is stupid enough to buy it.

The former can be fixed with a temporary loan, the latter in bankruptcy court.

Re: Binance to acquire FTX

#719

Post by WheelNoHamster »

ww520 wrote: post #303
ww520 wrote: 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…

> Of the $14.6 billion assets Alameda manages, almost $6 billion is FTT based.

When that info was seemingly accidentally revealed, the spicy little nugget in there that made people sit up & notice was that the entire market cap of FTT tokens was well below the reported asset value of the tokens on the balance sheet.

Re: Binance to acquire FTX

#720

Post by HelloNurse »

eru wrote: post #688
stripedfish7 wrote: post #663

Earlier quoted context omitted.

Except none of these 4 cases happened with FTX. SBF claimed that assets WERE backed, while it appears that they were not.

That would be case D, wouldn't it be?

Assets backed with lies and cryptobullshit. At least someone has had a learning opportunity.
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