We will not pursue the potential acquisition of FTX

Post by JumpCrisscross » Wed, Nov 09, 2022, 10:23 PM UTC

mrtksn wrote: post #92

TheAlchemist wrote: post #53

What's even more funny is that Binance make it look like they are a stable financial institution, and it's thanks to their high standards that they won't acquire FTX. Binance is most probably much more of a fraud than FTX. Binance doesn't even have physical headquarters in any country in this world - and the reason is that they are being actively investigated or banned almost everywhere.

I don't know about it, Binance has become a gold standard in crypto exchange business. Here on HN it was always about Coinbase likely because its an American company but for the rest of the world, it's all about Binance and the rest of the world is huge. How huge? About an order of magnitude to Coinbase. If Binance goes, crypto isn't coming back.

Post by jdasdf » Wed, Nov 09, 2022, 10:23 PM UTC

thr0wawayf00 wrote: post #40

Mistletoe wrote: post #20

Earlier quoted context omitted.

What backs this? https://fred.stlouisfed.org/series/M2SL Might of USA and all that? Yes I’ve heard all that before. Rome, France, England… https://en.wikipedia.org/wiki/Debasement https://en.wikipedia.org/wiki/Assignat https://en.wikipedia.org/wiki/The_Great_Debasement History is more on the side of it happening than not. “The root problem with conventional currency is all the trust that's required to make it work. T…

> History is more on the side of it happening than not. Is this true? Of all the years that various countries have used traditional fiat currency, has debasement happened more years than it hasn't? I don't think so but I'm not certain. Obviously, nobody can predict the future here, and history tells us that all empires come to an end at some point. But we're watching crypto speed-run through all of the issues that th…

Post by CyanBird » Wed, Nov 09, 2022, 10:24 PM UTC

matai_kolila wrote: post #80

sytelus wrote: post #68

Earlier quoted context omitted.

That's exactly how it works. When you issue IOU, you issue your own currency. When a company issues stock, they are in fact issuing their own currency. All contracts are in fact a currency that can be sold, bought, invested and transacted. World debt is far far larger than actually currency in circulation. How does that happen? Because we make up "currency" all the time.

No, that's not the same thing at all. For every other example of currency besides the government's currency, there's a tangible thing backing that unit. Crypto still doesn't have that, and that matters. To what degree is up for debate, but it does matter. Only governments apparently can get away with the unbacked currency, because they otherwise back it with enforced societal rules (a.k.a. laws).

Post by lizknope » Wed, Nov 09, 2022, 10:25 PM UTC

mumbisChungo wrote: post #89

oldgradstudent wrote: post #76

Earlier quoted context omitted.

Very different. LTCM was making massive, very risky bets while pretending they were safe. They were making insanely leveraged bets on real assets. FTX seems to me to much closer to Madoff. They were printing their own Monopoly money and pretending it was worth billions.

The core of the issue here was not ponzinomics, it was the exchange gambling directly with user funds, by way of unsecured loans to a hedge fund controlled by the founders. Fraud? Yes. But users weren’t buying into a ponzi, they were using a centralized exchange product with the understanding that reserves were whole, when in reality they were secretly fractional reserves.

Post by googlryas » Wed, Nov 09, 2022, 10:26 PM UTC