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Binance to acquire FTX

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Re: Binance to acquire FTX

#731

Post by headsoup »

microtherion wrote: post #497
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…

> 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…

I think maybe FTX just doesn't have the money and their bluff was called

Re: Binance to acquire FTX

#732

Post by HolyLampshade »

vishnugupta wrote: post #677
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.

You are referring to liquidity providers and market maker; they provide the liquidity (in the form of loans for margin trading, among other things), take risk in exchange for market making fee. An exchange on the other hand is facilitating trades by matching buyers with sellers. At least that's how it works in stock markets. Even if NASDAQ were to become a market maker they would have to spin a separate entity, bring…

> Even then I don’t know if it’s allowed by regulation

It isn’t, precisely for this reason. The US Equity and Equity Derivative markets have tried a few times to get approval for initiatives using their already existing BDs (to facilitate inter-market order routing), and in every case it’s been blocked by the regulators as too risky to the underlying business.

The issue here has more to do with the lack of a centralized C&S clearing house in crypto, and is one of the reasons counterparty risk remains such a massive issue there. Having to maintain an account at each exchange, much like you would a BD, and praying things don’t suddenly go pear shaped, strikes me as insane (and is one of the primary reasons I’ve avoided getting involved in the crypto space)

Re: Binance to acquire FTX

#734

Post by trevorkoob »

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…

Distributed ledgers are not a scam, and our true best hope for anti-corruption.

I would like every elected official to have all their income and spending listed on a public ledger.

True accountability of representatives to those they purport to represent will solve so many problems, both in terms of the types of people incentivized to become public servants, and also in terms of public understanding of spending and waste.

All this "crypto" is intellectual warm-up for what is to come, I'd highly suggest looking at rollups (what I would describe as ledgers within ledgers) which are delving into the true possibilities of next-to-zero cost of immutable transaction records.

Re: Binance to acquire FTX

#735

Post by actionablefiber »

anonu wrote: post #36
alphabetting wrote: post #11

September's cover of Fortune was quite the jinx https://content.fortune.com/wp-content/uploads/2022/07/COV.W...

I think SBF realized marketing is everything. Being the face of crypto, sponsoring sports stadiums, being on the cover of a widely distributed magazine, all part of the same playbook.

But it turns out that wasn't true. It turns out "being able to cover customer withdrawals" is everything.

Re: Binance to acquire FTX

#736

Post by snapcaster »

epa wrote: post #535
snapcaster wrote: post #328

Earlier quoted context omitted.

Please don't tell me you own GME stock and blame Ken Griffin for everything bad that has ever happened. Can't you people just stay in your subreddits?

Hello, your comment does not follow guidline "Comments should get more thoughtful and substantive, not less, as a topic gets more divisive." per https://news.ycombinator.com/newsguidelines.html . Please be more constructive.

I understand that. I think you are likely missing some context and what is motivating comments like the one I responded to. Long story short a cult developed around gamestock bag holders that didn't manage to sell the top and now they're shitting up every discussion on the internet related to finance or investing. It's starting to really annoy me now that it's escaped reddit

Re: Binance to acquire FTX

#737

Post by automatic6131 »

trevorkoob wrote: post #734
chx wrote: post #327

Earlier quoted context omitted.

> 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…

Distributed ledgers are not a scam, and our true best hope for anti-corruption. I would like every elected official to have all their income and spending listed on a public ledger. True accountability of representatives to those they purport to represent will solve so many problems, both in terms of the types of people incentivized to become public servants, and also in terms of public understanding of spending and w…

>Distributed ledgers are not a scam, and our true best hope for anti-corruption.

They are not a scam, but they are almost completely useless

>I would like every elected official to have all their income and spending listed on a public ledger.

A public ledger is not necessarily a decentralised ledger. This could be accomplished by any bank account controlled by a US politician to send the payments made to a US goverment controlled webapp that's then publicly accessible (by FOI request, if necessary). No blockchain, no decentralised woo needed. What you have stated is a POLTICIAL problem, and those require POLITICAL solutions. No new or speculative technology, of any sort, is needed to accomplish the problem statement.

Re: Binance to acquire FTX

#738

Post by psychlops »

matheusmoreira wrote: post #641
psychlops wrote: post #457

Earlier quoted context omitted.

The coins have failed because the exchanges failed and people use them incorrectly. Got it.

The coins failed because exchanges shouldn't even have been created in the first place. Bitcoin should have been as easy to use and ubiquitous as the US dollar. As we all know, cryptocurrency turned into stocks instead.

If not exchanges, what entity would you suggest as a way to change crypto into fiat?

Using the most successful fiat currency the world has ever known as a goal seems a bit lofty. In your view, how much time should it have taken to surpass the dollar?

Re: Binance to acquire FTX

#739

Post by Frisiavones »

thepasswordis wrote: post #58

I am extremely bullish on crypto, and have been for the last decade. That said: the sooner we can get rid of these weird centralized exchanges and weird messiah figures the better. The next thing I thing will explode is Cardano, which appears to function approximately like a cult, with no actual product (as far as I can tell). Ethereum, LINK, and Bitcoin. Everything else is a distraction.

Monero, the only actual cryptocurrency, is all that matters. BTC will go down, as well as ETH, and all their copies.

Re: Binance to acquire FTX

#740

Post by kasey_junk »

MrPatan wrote: post #713
vishnugupta wrote: post #676

Earlier quoted context omitted.

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…

Do you have a source for the Biden funding remark? Open secrets suggests about 11M in donations came from SBF controlled entities but that’s pretty far down the list. The top contributions were from Bloomberg at 93M.

Those are for company controlled pacs as well, so not just SBF.

For individuals the best info I could find doesn’t list SBF as a major donor.

https://www.opensecrets.org/2020-presidential-race/joe-biden...

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