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FTX balance sheet, revealed

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261–270 of 309 posts

Re: FTX balance sheet, revealed

#261
post #216

Earlier quoted context omitted.

I believe there isn't a lot of historical evidence that state-backed currencies emerged to deal with undesirable aspects of barter. That's pretty much just a myth people decided made sense, rather than something that happened in history. We mostly don't know why money/currency came into existence, it happened so long ago. There is some evidence that at least in some places it was to fund armies or generally provide m…

There may not be historical evidence, but first principles tell me that most people prefer cash to trading pelts for groceries every week.

> There may not be historical evidence, but first principles tell me that most people prefer cash to trading pelts for groceries every week.

That might be true, but your prior comment says

> State-backed central currencies emerged because people in informal economies were bartering to exchange goods and services, which is less efficient than having a standardized medium of exchange, so central authorities issued currency in order to increase the efficiency of the economy.

Which is a much stronger claim and doesn't necessarily follow from the fact that "people prefer cash to trading pelts for groceries".

If you check the wikipedia article on the history of money[1], the first forms of currency wasn't issued by the state. They were informal credit systems, or standardized unit of account (eg. grain, or receipt for grain stored at a granary and later precious metals). State backed versions of the latter came later. Even in the US, prior to the federal reserve, "currency" was IOUs for gold issued by various private banks.

[1] https://en.wikipedia.org/wiki/History_of_money

Re: FTX balance sheet, revealed

#262

Earlier quoted context omitted.

No, they're not. The definition of "Ponzi scheme" is not "something financial I think is a scam" as most people use it. It's a very specific type of financial fraud. "Everything is a Ponzi" is a lazy analysis only made possible by having a lazy definition of what a Ponzi scheme is

Here's the definition: https://www.investopedia.com/terms/p/ponzischeme.asp I think the point is that there are more structures out there like this than we think. Social Security for example. Just do a web search and you'll see it's a rather mainstream question. Also there are so many unfunded public pensions that could meet the definition. Perhaps the difference is transparency. We know these public programs are cur…

Social Security isn't a Ponzi scheme. It's not hiding how it's funded, has accurate transparent accounting, and isn't misleading anyone about it. It's more like insurance.

Pay as you go isn't a Ponzi scheme.

Re: FTX balance sheet, revealed

#263
There should be a newcomer financial book titled "How to get rich quick if you don't mind being a crook".

The very first book to read before any other on finance and investment.

It would be the like of telling your kid "Beware of the wolf before sending her through the wood to pay a visit to Granny"...

Re: FTX balance sheet, revealed

#264

The only lesson I learend from this whole debacle is never trust people and organisations you know from the Internet no matter how famous or humble or good they are. Trust the tech. But never the people. Especially for financial advices. Be it Sequoia. Or Yc. PG, Chamath, Mark Cuban ,Balaji or the Collision brothers. Tom Brady or SBF or CZ. Never fucking trust people or organisations. They are all here for their fina…

What I learned from this mess: nothing new. If anything this just reinforces what should already be painfully obvious: invest in real world value that you understand. I have not seen the real world value of crypto or understand how that makes makes outside of itself. Even before crypto currency markets were a thing and were like setting money on fire. I apply that reasoning to all investments. Sure, I miss out on all…

the Warren Buffet mantra to investing. Been working now for 70+ years.

Re: FTX balance sheet, revealed

#265

What the fresh hell? This isn't even an actual accounting balance sheet. He was trying to convince investors to put billions of dollars of actual money into FTX, and the best he could do is the sketchiest one-page Excel ever, complete with comments like "Hidden, poorly internally labled fiat@ account" (sic) worth 8 billion and warnings about typos ! No wonder CZ got cold feet.

Hey man, move fast and break things. Professional accounting practices are nothing but “gatekeeping”. Hack the fucking plaaaanet.

they try to bring that silly mindset to healthcare too. And they are surprised that doctors are refusing to embrace it, and they are facing roadblocks at every step. move fast, break things work if you are building photo-sharing networks, or messaging platforms, or optimizing ad-delivery. It doesn't work for healthcare or finance or even hardcore engineering. Rules and regs in those areas are written in blood or recessions.

Re: FTX balance sheet, revealed

#266
Perhaps crypto-exchange could be transparent to third-parties through blockchain(s)? It should not be hard to declare all account numbers, so whole crypto-balance could be online validated.

Re: FTX balance sheet, revealed

#267
post #17

The "before this week" column seems to be attempting to draw sympathy by saying "but everything was fine before, seriously!" when in reality it just proved that, even in the best of worlds, they had an extremely optimistic view of the entire crypto ecosystem, including its liquidity. I can't believe they seriously held that much of their total value in their own issued token. That's just preposterous. Imagine if JP M…

I mean they do that. Companies issue, hold, and buy back stock all the time. The difference is that JPM stock is a thing that people want and has intrinsic value as it confers ownership over the company.

Re: FTX balance sheet, revealed

#268

Earlier quoted context omitted.

And a week ago you would have included FTX in that KYC "western" list esp since they had so many big "western" investors and Washington's ears including the SEC. Not to mention Bitcoin and crypto were created out of the failures of the trusted KYC "western" banking standards of 2008. You are literally repeating blind trust mantra based on region bias that has just failed again this week. Crypto is about avoiding the…

FTX pretended to be that but they were based in the Bahamas. Also Kraken has verifiable proof of reserves. Kraken and FTX/Binance are essentially not even in the same business (Binance is almost certainly quasi criminal or dodgy if not worse).

FTX.US is based in the US and that didn't solve the fundamental issue of manhandling funds.

KYC didn't stop anything, the fraud was internal.

If proof of reserves was enough for you then Binance is on the same level as Kraken. It does sound a little hypocritical if you hold them to different standards if that was your issue.

From my understanding Binance took a more DeFi route while FTX/Coinbase were pushing for CeFi.

CZ doesn't inspire trust, but I don't think he is seeking it either. Unlike say SBF who had contracts where people HAD to praise him(YouTubers) and cultivated a persona of "honesty" - while ruthless destroying other projects, you are seeing just how many now and time will only reveal more.

If I wanted crypto to act like a bank, I'll just open another bank account.

I rather they build products that make life easier for others, than all the traditional derivative junk or yield scams that happened in recent years.

There is too much filth in the current system that exploited a good idea, let the tide recede and expose those who were swimming without pants.

Re: FTX balance sheet, revealed

#270

Earlier quoted context omitted.

Exactly. People that say that the value of fiat money is fake, never think about taxes. You want to own a house? The government mandates that you acquire and give them a certain amount of US dollars. Even if you did every single transaction in your life with other assets, paying for stuff with gold and chickens, at the end of the day, the tax man will come for you, and the tax man only takes dollars.

> You want to own a house? The government mandates that you acquire and give them a certain amount of US dollars. I have gone through many county clerk & recorder documents. I regularly see 6 and 7 figure houses change hands via recorded quit claim that says things like: 'love and other valuable consideration' or the frequent 'ten dollars'. And I have read a lot of State law. While there is shady stuff in law such as…

I realize that at the state level in the US things vary by jurisdiction, but in Canada at least you’d be hard pressed to buy property somewhere that doesn’t require annual property tax payments paid in CAD.
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