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FTX held less than $1B in liquid assets against $9B in liabilities

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Re: FTX held less than $1B in liquid assets against $9B in liabilities

#131

Post by rasz »

celestialcheese wrote: post #110

How the fuck did all these high-profile investors miss this. NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Ribbit Capital, Temasek Holdings, BlackRock and Thoma Bravo. These aren't schleps in this list. Blackrock, Sequoia, Tiger, Lightspeed, the fucking NEA. Jesus. Did no one…

>Jesus. Did no one do _any_ due diligence??

They did, saw mommy, daddy, family connections and went all in.

Edit: forgot about girlfriend "Gary Gensler's boss at MIT Glenn Ellison is the father of the Co-CEO Caroline Ellison"

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#132

Post by rasz »

JonathanBeuys wrote: post #15

There should be more discussion about how to store value without counterparty risk. Most people think it is as easy as ordering a hardware wallet, following the process the wallet software suggests and - hurray! - your keys, your coins! But it is not that easy. You also have to cut the wallet manufacturer and the software developer out of the loop. I have yet to see a description on how to safely create a wallet that…

>There should be more discussion about how to store value

What value? All crypto is people trading checksum numbers.

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#133

Post by teg4n_ »

celestialcheese wrote: post #110

How the fuck did all these high-profile investors miss this. NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Ribbit Capital, Temasek Holdings, BlackRock and Thoma Bravo. These aren't schleps in this list. Blackrock, Sequoia, Tiger, Lightspeed, the fucking NEA. Jesus. Did no one…

Why do due diligence when the CEO plays League of Legends during meetings and that is supposed to make him a super genius.

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#134

Post by airza »

celestialcheese wrote: post #110

How the fuck did all these high-profile investors miss this. NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Ribbit Capital, Temasek Holdings, BlackRock and Thoma Bravo. These aren't schleps in this list. Blackrock, Sequoia, Tiger, Lightspeed, the fucking NEA. Jesus. Did no one…

I feel like making money when you can borrow money at near zero interest rates is a pretty easy thing that more or less anyone can do.

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#135

Post by ilrwbwrkhv »

pigtailgirl wrote: post #123
Animats wrote: post #86

So now we see some numbers. Notes: Bankman-Fried personally seems to own, indirectly, about $472M (paid over $600M, so that was a loss) worth of Robinhood Financial.[1] Other documents provided to investors say that FTX US, Bankman-Fried’s onshore exchange, held $115mn of cash. Of that sum, $48mn was listed as corresponding to customer US dollar balances of $60mn. So there might be enough cash to pay off customer cas…

-- a 30 year old personally has $600MM to invest in a single company? - his startup was founded in 2019 - that was crazy comp structure he had? - he comes from money? - or..? --

It's all fugazie. Just ask andreessen horowitz.

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#136

Post by memish »

celestialcheese wrote: post #110

How the fuck did all these high-profile investors miss this. NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Ribbit Capital, Temasek Holdings, BlackRock and Thoma Bravo. These aren't schleps in this list. Blackrock, Sequoia, Tiger, Lightspeed, the fucking NEA. Jesus. Did no one…

Appeal to authority is a hell of a drug.

"I'm a big advocate for Sam because he has two parents that are compliance lawyers. If there's ever a place I can be where I'm not going to get in trouble, it's gonna be FTX" https://twitter.com/Guruleaks1/status/1591086077489844224

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#137

Post by [deleted] »

smt88 wrote: post #129
celestialcheese wrote: post #110

How the fuck did all these high-profile investors miss this. NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Ribbit Capital, Temasek Holdings, BlackRock and Thoma Bravo. These aren't schleps in this list. Blackrock, Sequoia, Tiger, Lightspeed, the fucking NEA. Jesus. Did no one…

We all asked the same quesrions after Theranos. Silicon Valley VC is a relationship business run by idiots who just follow the leader. They admitted they didn't do much diligence into Theranos, and they obviously didn't do it here either.

[deleted]

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#138

Post by ilrwbwrkhv »

celestialcheese wrote: post #110

How the fuck did all these high-profile investors miss this. NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Ribbit Capital, Temasek Holdings, BlackRock and Thoma Bravo. These aren't schleps in this list. Blackrock, Sequoia, Tiger, Lightspeed, the fucking NEA. Jesus. Did no one…

Because they are all dumb and dumbers. Having spoken to a lot of high profile vc firms you would be amazed how low IQ most of them are. They have this outward show which they cultivate while they spend old people's pension funds.

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#139

Post by factsarelolz »

celestialcheese wrote: post #110

How the fuck did all these high-profile investors miss this. NEA, IVP, Iconiq Capital, Third Point Ventures, Tiger Global, Altimeter Capital Management, Lux Capital, Mayfield, Insight Partners, Sequoia Capital, SoftBank, Lightspeed Venture Partners, Ribbit Capital, Temasek Holdings, BlackRock and Thoma Bravo. These aren't schleps in this list. Blackrock, Sequoia, Tiger, Lightspeed, the fucking NEA. Jesus. Did no one…

It's fun to gamble and light money on fire. Sometimes that gambling pays off and you get to light even more on fire. Retail traders will always gladly sweep up the ashes and hold on to them.

Re: FTX held less than $1B in liquid assets against $9B in liabilities

#140

Post by rvba »

oldgradstudent wrote: post #107
Geee wrote: post #73

Earlier quoted context omitted.

This seems to be the trick. I think this same thing also explains the high market cap of many altcoins, such as Solana. Instead of selling and crashing the price, these are held onto and used as a collateral to borrow against.

The two sentences > Instead of selling and crashing the price and > these are held onto and used as a collateral to borrow against. Are not compatible. If selling the assert crashes its price, it is a terrible collateral. I would like to see how lenders justified in writing accepting large quantities of FTT as collateral.

My understanding that it is an extension of the old joke about someone wanting to sell a dog for 1 million that was finally traded for 2 cats worth half a million each.

Basically extended comment of michaelbuckbee. You have your $mikecoins "worth" 1 million and someone else makes $annacoins worth 1 million and some other party makes $bobcoins worth 1 million - and you each "lend" them to each other to make a complicated net. Then Mike, Anna and Bob just wait for some people to invest real money - and cash out. People who bought those $mikecoins, $annacoins and $bobcoins think that they can "always sell them back at the market", but the market didnt really exist. From those 1 million coins minted, maybe 250 thousand were sold, rest are held by creators to sell them to bagholders.

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