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Binance to acquire FTX

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Re: Binance to acquire FTX

#421

Post by colinmhayes »

danrocks wrote: post #419
kuratkull wrote: post #119

Binance was threatening to dump a huge amount of FTT tokens on the market. FTX has a big+vulnerable position in FTT. FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Binance declined - this was yesterday/today. Of course the price of FTT crashed today. And now Binance buys FTX to help them out... smells like Binance played 4D chess all along. https://decrypt.co/1136…

> FTX asked Binance to sell them the tokens for a fixed price, so as not to crash the FTT token price. Why would Binance decline this opportunity? If FTX, Binance, and the market knew FTT would just crash, it sounds like a given that Binance should take advantage of the fixed price instead of losing hundreds of millions of dollars "letting the market decide".

Because they wanted to create a liquidity crisis in FTX that would force FTX to sell itself for a discount?

Re: Binance to acquire FTX

#422

Post by lmm »

yucky wrote: post #183
shapefrog wrote: post #26

Earlier quoted context omitted.

12:38 PM · Nov 7, 2022 2) FTX has enough to cover all client holdings. [0] 4:03 PM · Nov 8, 2022 2) Our teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. [1] has enough to cover all client holdings ---> not enough to cover all client holding in 24 hours. Either they los…

If everybody walked into their bank right now to withdrawal, they couldn't cover either. Right?

They'd cover it. They might need to call up the fed, but they'd cover it.

Re: Binance to acquire FTX

#423

Post by appleflaxen »

TravelTechGuy wrote: post #201

Some more background: the companies were engaged in fighting over regulations, and on a personal basis between the 2 CEOs. It went down to really childish levels at some point. But one thing is undeniable: SBF (FTX CEO) was trying to weaponize US regulation against his biggest rival CZ (Binance CEO). CZ retaliated by selling the FTT token, exposed the fact FTX was over-leveraged, and took over. This is, as the kids o…

And over-leveraged, for a brokerage, is a major problem. A brokerage is not a bank, and account-holders are not earning interest. Therefore if you are taking their funds and doing something else with them (a pre-requisite for insolvency, unless you are hacked) is a major red flag for illegality.

Re: Binance to acquire FTX

#424

Post by lmm »

JumpCrisscross wrote: post #158
ucha wrote: post #139

Earlier quoted context omitted.

How can you say it's clear it wasn't cash? What's the source? Also, FTX minted FTT out of nothing - effective cost zero - so no matter what they received in exchange, even if they had received nothing that is not an investment unless they received Alameda equity. I agree that lending is a form of investment but nothing says that they received a loan in exchange. You could still be right, but it's all speculation :)

> How can you say it's clear it wasn't cash? FTT spiraled and FTX went insolvent.

Doesn't mean they never received any cash. Maybe the CEO spent it all on crack and hookers.

Re: Binance to acquire FTX

#425

Post by pitt1980 »

bombcar wrote: post #343
sneak wrote: post #282

Earlier quoted context omitted.

It’s common in many internet circles to refer to prominent people by their initials. Hackerdom has a long tradition of this: rms gls esr jwz et al. It also tends to happen in US federal politics for some reason (jfk rfk gwb fdr et al) but not to everyone.

At least the political ones (some) came about for clarification (JFK and RFK are both Kennedies, GWB is to distinguish from "Bush"). Others come from their names being long or hard to remember/pronounce/spell (I suspect this is what happened with AOC).

The Robert Caro books about Lyndon B Johnson detail his effort to force meme “LBJ” as a reference to him.

(Mostly in terms of insisting various communications employees use it in press releases and what not).

It seems he liked the iconography of it, especially in putting himself in similar company to FDR.

Both his daughters have the LBJ initials, his wife is mostly known as Lady Bird Johnson (a nickname that predates their relationship, but is not her given name)

Re: Binance to acquire FTX

#426

Post by RC_ITR »

jonas21 wrote: post #275
TravelTechGuy wrote: post #201

Some more background: the companies were engaged in fighting over regulations, and on a personal basis between the 2 CEOs. It went down to really childish levels at some point. But one thing is undeniable: SBF (FTX CEO) was trying to weaponize US regulation against his biggest rival CZ (Binance CEO). CZ retaliated by selling the FTT token, exposed the fact FTX was over-leveraged, and took over. This is, as the kids o…

For those not up to date on crypto people, SBF is Sam Bankman-Fried [1] and CZ is Changpeng Zhao [2]. I don't know why they insist on being called by their initials like they're some sort of ticker symbol. [1] https://en.wikipedia.org/wiki/Sam_Bankman-Fried [2] https://en.wikipedia.org/wiki/Changpeng_Zhao

You see the same thing with Middle East Leaders - MBS, MBZ, etc.

When the names are even semi-complex and the reach is global, people default to acronyms.

Re: Binance to acquire FTX

#427

Post by CamelCaseName »

jonas21 wrote: post #275
TravelTechGuy wrote: post #201

Some more background: the companies were engaged in fighting over regulations, and on a personal basis between the 2 CEOs. It went down to really childish levels at some point. But one thing is undeniable: SBF (FTX CEO) was trying to weaponize US regulation against his biggest rival CZ (Binance CEO). CZ retaliated by selling the FTT token, exposed the fact FTX was over-leveraged, and took over. This is, as the kids o…

For those not up to date on crypto people, SBF is Sam Bankman-Fried [1] and CZ is Changpeng Zhao [2]. I don't know why they insist on being called by their initials like they're some sort of ticker symbol. [1] https://en.wikipedia.org/wiki/Sam_Bankman-Fried [2] https://en.wikipedia.org/wiki/Changpeng_Zhao

They go by acronyms on social media, namely twitter, the main place people interact with them

https://twitter.com/cz_binance

https://twitter.com/SBF_FTX

Re: Binance to acquire FTX

#428

Post by webXL »

jrumbut wrote: post #393
ballofrubber wrote: post #354

Earlier quoted context omitted.

Arguably a lot of discussion is open to anyone (Bitcoin mailing list, Core github repo), where anyone is free to post their opinion on topics themselves. It is not democratic as in "you have a vote to force others to comply to the majority", but more a democratic in "you can try to convince enough people that the major chain becomes how you like it, while the others run a minority fork". People think "where the money…

This is a terrifying definition of democracy, "you don't get a vote but there is an informal and non-binding channel to lodge complaints." That's not democratic at all!

> "you have a vote to force others to comply to the majority"

is less terrifying to you?

Re: Binance to acquire FTX

#429

Post by Taek »

sneak wrote: post #282
jonas21 wrote: post #275

Earlier quoted context omitted.

For those not up to date on crypto people, SBF is Sam Bankman-Fried [1] and CZ is Changpeng Zhao [2]. I don't know why they insist on being called by their initials like they're some sort of ticker symbol. [1] https://en.wikipedia.org/wiki/Sam_Bankman-Fried [2] https://en.wikipedia.org/wiki/Changpeng_Zhao

It’s common in many internet circles to refer to prominent people by their initials. Hackerdom has a long tradition of this: rms gls esr jwz et al. It also tends to happen in US federal politics for some reason (jfk rfk gwb fdr et al) but not to everyone.

Can't forget pg and sama

Re: Binance to acquire FTX

#430

Post by googlryas »

3001 wrote: post #403
billjings wrote: post #381

Earlier quoted context omitted.

I went to Georgia Tech with Dare. It's a great school, but it's not exactly the kind of place you send your scions of privilege.

Thats funny, sure going to Gtech for an American as an undergrad doesn't scream privilege but seeing that today the total cost of going to such school will run you around 400k as an international student, while millions of people graduate high school in Nigeria and have to go through the hunger games of Jamb for extremely limited spots due to the lack of investment in education lead by his dad and cohorts tells a dif…

Are you just assuming his dad paid for his school? Do you know if he received any scholarships? Do you know the finances of his mother/mother's side of the family?
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