It feels like it was just yesterday when the CEO declared on Twitter that all the problems are localized at international FTX.com and that funds at FTX.us are 100% safe! Oh wait, it was yesterday.
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FTX to file for U.S. bankruptcy, CEO resigns
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Re: FTX to file for U.S. bankruptcy, CEO resigns
#412Earlier quoted context omitted.
Here's another guy that was vouching for SBF to get in on the Twitter deal for $5b. Michael Grimes [IBanker at Morgan Stanley]: Do you have 5 minutes to connect on possible meeting tomorrow I believe you will want to take? Elon: Will call in about half an hour Michael: Sam Bankman Fried is why I'm calling https://twitter.com/sbf_ftx/status/1514588820641128452 https://www.vox.com/platform/amp/recode/2021/3/20/22335209…
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Re: FTX to file for U.S. bankruptcy, CEO resigns
#413I've seen some comments saying that this is all delayed fallout from the Luna/Terra collapse last spring, it's just that FTX had the means (its own token that it could pump and move around its own entities) to paper over the hole in its balance sheet until now. Can anyone more familiar with the situation elaborate? How much further will the contagion spread?
Until the tether fraud collapses the market hasn't corrected.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#414Earlier quoted context omitted.
> Caroline, Alameda's CEO, also said "My advice for college is that class don't matter that much and friends and networking are really important. Probably the most valuable thing you can do in college is find the coolest people you can and spend lots of time hanging out with them". This is mainstream advice if you're at an Ivy, Stanford, etc. You're learning the same material as the people who go to a state universit…
> You're learning the same material as the people who go to a state university. The advantage is the proximity to power, the people you rub elbows with who can help your career down the line. I got my MS CS from Stanford and this is completely false. I did my BS CS at Georgetown, and even between the two there was a huge difference being at Stanford. The course material pushed me way harder, there were more resources…
The original comment applies more to humanities and business school than to hard sciences. But it's still relevant in STEM.
> I got my MS CS from Stanford and this is completely false. I did my BS CS at Georgetown, and even between the two there was a huge difference being at Stanford.
Stanford is probably the best-known school in the world for Computer Science. Georgetown (while a great school) is known for its international relations. So I'm not surprised that Stanford had more CS electives, resources, etc.
But the fair comparison here is a school like UC Berkeley, University of Illinois, or [insert flagship state university here]. Is the quality of education really that different vs. Stanford? Or is the Stanford name brand on the resume the differentiator?
Also, a masters program should be harder and more competitive than an undergrad program!
> and more consistently brilliant peers
Exactly. At Stanford, your "consistently more brilliant peers" will be in positions of power down the road. They'll be hiring managers at Google and Apple in <5 years.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#415The CEO of Alameda said "we tend not to have stop losses... I'm trying to think of a good example of a trade where I've lost a ton of money... I probably don't want to go into specifics with that" https://twitter.com/ApeDurden/status/1590912098871435265 Now how did this place end up managing billions of dollars and SBF the darling of politicians? The picture is starting to come into focus. SBF used customer funds to…
This stuff just worries me so much. These people are looked up to as some gods of business, insight, or whatever. Even I have been guilty of getting caught up and being jealous of these younger people with so much apparent success. But then you find out, in gory detail, about just how much bullshit it all is, and that these people are just from elite circles who got handed keys to the Lamborghini after just playing with a Tonka truck. I mean, just hearing these people speak is cringe. They don’t understand how anything actual works. I can’t believe that something that literally stops your losses is not an effective risk management tool.
This is what you find with kids from the elite class. They can take on mind blowing risk because they can fall back on their parents when it fails. People from lower socioeconomic levels cannot do that. Our government sets back and let criminal actions go unpunished, letting people truly treat life as a Monopoly game.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#416This whole thing is just the .com crash all over again. Super Bowl ad’s the same year of the crash even. I happened to be at a hotel earlier this year that was hosting a crypto conference and the attendees looked like the kinds of people a multi-level marketing scheme attracts. Very different from a few years ago.
You must not have been following cryptocurrency for that long. This sort of thing happens every 2-3 years. This isn't a wild, unforseen crazy market calamity, this is your run of the mill downturn, this ones mild so far actually. You're only hearing more "bloodbath" talk because the news covers it nowadays, and the news loves to exaggerate bad things and make them sound worse because that's how they keep the lights o…
It seems like a fundamental flaw in their business model rather than a market downturn.
This seems like a bigger deal to me because FTX is part of then new wave of crypto companies that were supposed to be legitimising crypto. And even they can't stay afloat. It's just a matter of time before the next crypto giant falls.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#417Earlier quoted context omitted.
He already lost his whole net worth overnight ($16B) and will live in hiding with serious death threats for the rest of his life. This is no ordinary CEO switcheroo where the he walks away with a slap on the wrist and a golden handshake.
Lol give me a break. He will be fine and rich forever, just maybe not a billionaire. There are no real consequences when you are that wealthy.
No death threats because he had money? Have you perhaps seen the extensive list of Russian billionaires who "committed suicide" during like the past five years?
Re: FTX to file for U.S. bankruptcy, CEO resigns
#418Does this bankruptcy include FTX US? A bunch of people in yesterday’s thread were saying that FTX US is safe, which seemed strange.
If withdrawals are open, then it seems FTX.us still has all its customers assets and can return them, but will not be able to pay its own bills for hosting, staffing, etc. in the very near term. So yesterdays statement that it wasn't affected by the loss of funds implosion would be accurate, but if the business was reliant on funding from other operations to survive, it can still go bankrupt.
People get all antsy in their pantsy and can't read nuance.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#419He should have just stuck to running an exchange and trying to innovate that game (note - earlier in the year lots of talk around their automated margin plan for wider industry beyond crypto). Theres a decent business there.
> He should have just stuck to running an exchange
I'm a bit of a Luddite when it comes to crypto, can you please help me undersatnd what did SBF actually do that has caused all this trouble?
Aside from running an exchange I mean.
I'm just trying to understand the context of all these headlines.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#420Earlier quoted context omitted.
Coinbase appears now to be relatively boring, highly regulated, and compliant with US laws. I think they'll be fine.
They will be fine _modulo people's interest in crypto_. The way I think about it is that their business model is taking fees off of every transactions, so as the interest tapers off so will their earnings and valuation.
On the path to bankruptcy the boring way, not being able to turn a profit