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We will not pursue the potential acquisition of FTX

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Re: We will not pursue the potential acquisition of FTX

#281

Post by ausudhz »

bitxbitxbitcoin wrote: post #249
mrtksn wrote: post #92

Earlier quoted context omitted.

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.

If Binance goes, cryptocurrency is certainly coming back. Also, cryptography isn’t going anywhere.

cryptography was not invented for cryptocurrency, I don't understand why it should go anywhere lol

It has many applications far beyond cryptos lol

Re: We will not pursue the potential acquisition of FTX

#282

Post by FormerBandmate »

chii wrote: post #254
panarky wrote: post #237

Earlier quoted context omitted.

Gambling with customers' funds works great for you when you win, and bad for your customers when you lose.

and this is why banks are not allowed to use customer deposits for such activities. And if they do, they must have equity value to back it up - aka, the bank's share holders lose value _first_ when shit hits the fan, before customer deposits. Then lastly, the gov't has put up guarantees on the deposits in case bank equity cannot cover customer deposits when shit hits the fan. Crypto has none of the above - so basical…

Banks inherently gamble with customers deposits, every loan is a gamble. They also can invest in certain types of debt securities, there’s security regulations but that isn’t bad on its own.

What FTX did is much worse. They spent their customer’s money on stupid shit like the Miami Heat stadium, political donations, and charity work (which was legitimately really good but not their choice to make), and then replenished their own coffers by making their own crypto out of nothing and assigning it to themselves. They essentially stole their customer’s money.

Re: We will not pursue the potential acquisition of FTX

#283

Post by jallen_dot_dev »

Animatronio wrote: post #79
eddsh1994 wrote: post #69

Earlier quoted context omitted.

Basically any r/cc user who was in FTX and wants to invest part of their next paycheck?

As the saying goes "Fool me once ..."

There are plenty of users who get fooled again and again on shitcoin rug-pulls so I'm sure they will try again on Binance.

Re: We will not pursue the potential acquisition of FTX

#284

Post by vgatherps »

chollida1 wrote: post #278
vgatherps wrote: post #242

Sbf could have printed money if he didn’t get so greedy. Maybe ftx would have been a top 10 exchange, instead of the third largest. Maybe alameda would have been a standard successful prop shop (though they were really struggling as trading got more competitive). He would have just been worth a few billion. But here we are now. I have a lot of friends on the inside and nobody knew at all. These friends knowingly kept…

How are you aware of how profitable alemedas trading was? I haven’t seen any data on it

I worked at a crypto trading firm ~two years ago and became good friends with some people at both alameda and ftx during that time.

I obviously don’t get to look at balance sheets or daily pnl or anything though so it’s all second hand and lagged.

Re: We will not pursue the potential acquisition of FTX

#285

Post by netheril96 »

ignoramous wrote: post #28
wellthatsawrap1 wrote: post #4

Earlier quoted context omitted.

Hopefully with jail time

If and after cryptocurrency becomes deeply intertwined with the economy (like Banks), I wonder bailouts would be the norm besides relatively inconsequential jail times? I wonder what's going on / will happen in countries where governments (or citizens en masse) have endorsed / adopted cryptocurrencies?

I personally hope that there will never be bailouts for crypto. Satoshi created Bitcoin out of the hate on Fed bailing out irresponsible banks and financial institutions. I don’t want the irony.

Re: We will not pursue the potential acquisition of FTX

#286

Post by dorkwood »

woeirua wrote: post #95

Honestly, I think this is a really dumb move by Binance. They have taken a look under the hood, determined that FTX is bankrupt and then told everyone that is the case. Now there's going to be a widespread crypto panic that is going to cause other exchanges to collapse, and ultimately I expect Binance too will go down.

Binance is in a good position since they now know who to short.

Re: We will not pursue the potential acquisition of FTX

#287

Post by FormerBandmate »

JumpCrisscross wrote: post #101
mrtksn wrote: post #92

Earlier quoted context omitted.

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.

> Binance has become a gold standard in crypto exchange business This was FTX and Alameda like a week ago.

FTX was actually based out of a headquarters and wasn’t on the run from governments.

Re: We will not pursue the potential acquisition of FTX

#288

Post by netheril96 »

sytelus wrote: post #44
scottiebarnes wrote: post #25

Earlier quoted context omitted.

The Bitcoin protocol and network continues to operate exactly as expected. Here, people trusted a "bank" (an exchange acting like a bank), and got burned when the bank gambled and lost.

Without exchanges like FTX or Coinbase, how should general public acquire crypto?

In a practical note, you can just use FTX and Binance to convert between USD and BTC. Withdraw them as soon as possible so your funds safe (as long as the BTC network)

Re: We will not pursue the potential acquisition of FTX

#289

Post by FormerBandmate »

ipv6ipv4 wrote: post #262
twblalock wrote: post #183

It's amazing how all of this was based on personal credibility, and a single Tweet caused the death spiral to start. Wells Fargo isn't going to go out of business if the CEO of Bank of America insults it on Twitter. But even if it did , there is FDIC insurance for deposits, and nobody whose balances were under the insurance limits will lose a penny. FTX succeeded solely based on the reputation and personal credibilit…

Read the comments here. They are a lot like the LiveStreamFail subreddit - minor celebrity gossip. In that context, it’s not so surprising that a tweet had the effect it had.

People don’t have their life savings wrapped up in Twitch streamers

Re: We will not pursue the potential acquisition of FTX

#290

Post by Mistletoe »

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…

A chart showing the lifecycle of world reserve currencies:

https://pbs.twimg.com/media/EkUHjO9XkAgKB57.jpg

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