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FTX to file for U.S. bankruptcy, CEO resigns

reuters.com

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Re: FTX to file for U.S. bankruptcy, CEO resigns

#561

Post by twblalock »

Julesman wrote: post #463

I'm not a luddite (on hacker news lol) and I can clearly see the revolutionary potential of blockchain. But, for the love of God, can we STOP the blind short-term speculation on the promise of extreme wealth. Moderate investment can support development without the kind of hype that ruins lives and sullies public perception of the technology.

> But, for the love of God, can we STOP the blind short-term speculation on the promise of extreme wealth.

Not without changing human nature. If there is a get-rich-quick scheme available, there will always be takers.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#562

Post by JSavageOne »

bananapub wrote: post #532
kasey_junk wrote: post #516

Earlier quoted context omitted.

A “universal” api for moving money between financial institutions that don’t have existing relationships would be extremely valuable and could unlock innovation in everything from payments to mortgages. But the blockchain space has an extreme bias against the existing finance world. Frequently products in the space want to tear it down as they view it as predatory. This leaves us with the current situation, the crypt…

I swear to god, half of the problem with cryptocurrency is Americans not understanding what a functional personal banking system looks like. The big American banks just never bothered to move beyond the 1970s, and so otherwise fairly well-informed Americans in tech assume you need some sort of completely mad system like "consume the power of Spain making a distributed merkel tree full of partial hash collisions" to m…

> In every other rich country

Let's not ignore the non-"rich" countries

Re: FTX to file for U.S. bankruptcy, CEO resigns

#563

Post by criddell »

paxys wrote: post #471
criddell wrote: post #47

Is this FTX US? Yesterday SBF said FTX US was not impacted by the shitshow: https://twitter.com/SBF_FTX/status/1590709195892195329

SBF has Tweeted a lot of things in the last few weeks that were provably false, sometimes just hours after he sent them. I was surprised that everyone here just took him at his word about FTX US.

I gave it some credence because in the US he has the SEC to think about.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#564

Post by halfmatthalfcat »

friend_and_foe wrote: post #556
nemo44x wrote: post #283

Earlier quoted context omitted.

I’ve held BTC since 2011 so I think I get it. My point is the industry around it collapsing. It’s not just crypto crashing but the industry built around it collapsing at scale. This isn’t Mt.Geox level - this is .com level.

But it's not collapsing at scale... not yet anyway. It's just one exchange, a big one but just one going under. It's scams and rug pulls predictably going under, same story as the last cycle. The only difference is that the news is covering it, it makes it seem like a bigger deal than it is. And you want them to go under. When the scams stop going under is when you have a real problem, because that means the entire i…

The path toward Binance and Tether's ultimate collapse is not hard to see, which would almost guarantee the collapse of the whole system.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#565

Post by jefb »

JSavageOne wrote: post #541
thwayunion wrote: post #491

Earlier quoted context omitted.

> can we STOP the blind short-term speculation on the promise of extreme wealth I first played around with blockchain in 2011 or so and I still don't know what actual utility this technology is supposed to have. I have never -- never -- encountered a value-producing use case for cryptocurrency that can't be solved by either signed git commits or a SQL database. Around 2015 a lot of people I thought were smart enough…

Quoted post unavailable.

Cryptocurrency has many advantages to centralized fiat money.

Narrator: It doesn't.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#566

Post by aaronbrethorst »

tasubotadas wrote: post #555
twblalock wrote: post #528

This has been a wonderful social experiment, enabling people who didn’t live in the 19th century to see what happens when banking and investing is treated like the wild west. Maybe something could have been different this time? In the end it wasn’t, and it proves the necessity of regulation and institutions. There aren’t very many other aspects of our society where we get to have that kind of experiment and find out…

Why does this need to be regulated? We already have banks for that. And it's not like regulation saved them from being able to become insolvent.

I get whiplash wearing a seatbelt when my car gets into a crash. Why should I bother wearing that seatbelt? It didn’t save me from the whiplash!

Re: FTX to file for U.S. bankruptcy, CEO resigns

#567

Post by twblalock »

tasubotadas wrote: post #555
twblalock wrote: post #528

This has been a wonderful social experiment, enabling people who didn’t live in the 19th century to see what happens when banking and investing is treated like the wild west. Maybe something could have been different this time? In the end it wasn’t, and it proves the necessity of regulation and institutions. There aren’t very many other aspects of our society where we get to have that kind of experiment and find out…

Why does this need to be regulated? We already have banks for that. And it's not like regulation saved them from being able to become insolvent.

Even in 2008, no depositors in FDIC-insured banks lost their money. Some banks died (Washington Mutual comes to mind), but it's not like FTX where the depositors are left with nothing.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#568

Post by krrrh »

nannal wrote: post #513
thwayunion wrote: post #491

Earlier quoted context omitted.

> can we STOP the blind short-term speculation on the promise of extreme wealth I first played around with blockchain in 2011 or so and I still don't know what actual utility this technology is supposed to have. I have never -- never -- encountered a value-producing use case for cryptocurrency that can't be solved by either signed git commits or a SQL database. Around 2015 a lot of people I thought were smart enough…

I don't trust you, you don't trust me, neither of us trust the guy who owns the git server but I need to give you something without anyone being able to stop us.

You really shouldn't be doing a significant amount of your business with people who don't trust you and who you don't trust. Blockchain advocates really underestimate how much of functioning economies simply work because of trust (with lawyers and courts as a backup), and how small the potential "I don't trust you" market is.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#569

Post by SV_BubbleTime »

vgatherps wrote: post #220
AustinDev wrote: post #156

Earlier quoted context omitted.

Wow... I thought this was satire. (when talking about trading) 'We don't tend to have stop losses, we don't see those as very good risk management tools' No wonder they're bankrupt... SBF loaned her company 10 billion to trade without basic risk management for trading.

She’s not wrong, stop losses are pretty pointless if you’re running a high volume market maker that is in theory constantly doing tons of volume and reacting to updates. They’re also super dangerous if you have gigantic positions Anyways they wouldn’t save you from collateralizing your loans with shitcoins, taking leveraged bets with money that isn’t yours, having super high exposure to UST and/or Luna, exposed to ha…

>The real red flags are claiming she doesn’t use math and that she’s never lost a lot of money on a trade despite doing largely human informed trading for size…

For the peak crypto years it was almost impossible to lose money AS AN EXCHANGE. These clowns really thought they were on fire, and not just in position that random moves could be winning strategies.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#570

Post by miracle2k »

thwayunion wrote: post #491
Julesman wrote: post #463

I'm not a luddite (on hacker news lol) and I can clearly see the revolutionary potential of blockchain. But, for the love of God, can we STOP the blind short-term speculation on the promise of extreme wealth. Moderate investment can support development without the kind of hype that ruins lives and sullies public perception of the technology.

> can we STOP the blind short-term speculation on the promise of extreme wealth I first played around with blockchain in 2011 or so and I still don't know what actual utility this technology is supposed to have. I have never -- never -- encountered a value-producing use case for cryptocurrency that can't be solved by either signed git commits or a SQL database. Around 2015 a lot of people I thought were smart enough…

> I have never -- never -- encountered a value-producing use case for cryptocurrency that can't be solved by either signed git commits or a SQL database.

The value is in a permissionless and censorship resistant financial network. You may not find that valuable, but that's ok.

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