Ftx.com Has Probably Collapsed • Hacker News Board

Re: Ftx.com Has Probably Collapsed

#51

Post by gonzo41 » Thu, Nov 10, 2022, 4:55 AM UTC

RC_ITR wrote: post #33

sillysaurusx wrote: post #23

Does anyone know how Coinbase avoided this fate? I really thought it would be them to fall, but they proved everyone wrong. There’s some key difference between Coinbase and an exchange like FTX. Is it because FTX had a token, and then leveraged themselves using their own token? Binance has a token too. Are they in similar danger? It would be an interesting contrast to know why one exchange is safe vs another. Here’s…

Coinbase makes money on fees and doesn’t lend out deposits. Seriously look at their balance sheet! They have zero risk of this kind of insolvency, their only risk is people stop using them to trade. Say what you will about that being a weird/dumb model but here we are.

They are facing a systemic risk of crypto having such bad PR that no one will be willing to go near them.

Re: Ftx.com Has Probably Collapsed

#52

Post by [deleted] » Thu, Nov 10, 2022, 4:55 AM UTC

sillysaurusx wrote: post #23

Does anyone know how Coinbase avoided this fate? I really thought it would be them to fall, but they proved everyone wrong. There’s some key difference between Coinbase and an exchange like FTX. Is it because FTX had a token, and then leveraged themselves using their own token? Binance has a token too. Are they in similar danger? It would be an interesting contrast to know why one exchange is safe vs another. Here’s…

[deleted]

Re: Ftx.com Has Probably Collapsed

#53

Post by TedDoesntTalk » Thu, Nov 10, 2022, 4:56 AM UTC

hailwren wrote: post #41

sillysaurusx wrote: post #23

Does anyone know how Coinbase avoided this fate? I really thought it would be them to fall, but they proved everyone wrong. There’s some key difference between Coinbase and an exchange like FTX. Is it because FTX had a token, and then leveraged themselves using their own token? Binance has a token too. Are they in similar danger? It would be an interesting contrast to know why one exchange is safe vs another. Here’s…

Coinbase avoided this fate by being a us regulated company. FTX.us is still above water. It’s the Bahamas based company that was able to cook the books and is now defunct. As for Binance, they have the SAFU ( https://academy.binance.com/en/glossary/secure-asset-fund-fo... ) which they just topped up to $1B at current market prices (today). You can verify the balances on chain, but there aren’t any statements about ou…

Coinbase is listed on NASDAQ and has significant reporting requirements because of that. Civil and maybe criminal penalties for the board if they lie on SEC filings.

Re: Ftx.com Has Probably Collapsed

#54

Post by RC_ITR » Thu, Nov 10, 2022, 4:57 AM UTC

gonzo41 wrote: post #51

RC_ITR wrote: post #33

Earlier quoted context omitted.

Coinbase makes money on fees and doesn’t lend out deposits. Seriously look at their balance sheet! They have zero risk of this kind of insolvency, their only risk is people stop using them to trade. Say what you will about that being a weird/dumb model but here we are.

They are facing a systemic risk of crypto having such bad PR that no one will be willing to go near them.

>their only risk is people stop using them to trade.

Re: Ftx.com Has Probably Collapsed

#55

Post by dullcrisp » Thu, Nov 10, 2022, 4:57 AM UTC

woodruffw wrote: post #36

This is maybe tangential of me to say, but since this post is coming from an EA forum: I think the cozy relationship between EA and FTX has done immense damage to the public image and standing of the EA movement. I've never been an EA person (much less a utilitarian) but I can appreciate the meat and potatoes of applied ethics, especially when those ethics are applied consistently . The infusion of cryptocurrency fun…

IIRC lots of people had issues with EA even before they went all in on MTX.

Re: Ftx.com Has Probably Collapsed

#56

Post by LudwigNagasena » Thu, Nov 10, 2022, 4:57 AM UTC

woodruffw wrote: post #36

This is maybe tangential of me to say, but since this post is coming from an EA forum: I think the cozy relationship between EA and FTX has done immense damage to the public image and standing of the EA movement. I've never been an EA person (much less a utilitarian) but I can appreciate the meat and potatoes of applied ethics, especially when those ethics are applied consistently . The infusion of cryptocurrency fun…

AGI nonsense was always at the forefront of the EA movement. You can thank Eliezer Yudkowsky for that.

Re: Ftx.com Has Probably Collapsed

#57

Post by archon1410 » Thu, Nov 10, 2022, 4:58 AM UTC

woodruffw wrote: post #36

This is maybe tangential of me to say, but since this post is coming from an EA forum: I think the cozy relationship between EA and FTX has done immense damage to the public image and standing of the EA movement. I've never been an EA person (much less a utilitarian) but I can appreciate the meat and potatoes of applied ethics, especially when those ethics are applied consistently . The infusion of cryptocurrency fun…

>much of EA now seems focused on speculative concerns (AGI) rather than real ones (world hunger or civic integrity)

this has been the case since perhaps the very start of EA. many prominent EA/utilitarian faces and perhaps all "long-termists" have been involved in highly speculative stuff like that. it's a meme at this point, as they say.

Re: Ftx.com Has Probably Collapsed

#58

Post by Nursie » Thu, Nov 10, 2022, 4:58 AM UTC

TedDoesntTalk wrote: post #37

arkis22 wrote: post #13

Earlier quoted context omitted.

I've been waiting for this for years.

You’ve been waiting years for people to suffer? Lookup “ schadenfreude”.

Been waiting for years for the obvious ecosystem of fraud and hot air to implode and take with it the unbearable hype that has infected the tech space.

And yes, I believe a little schadenfreude is appropriate, given the circumstances and all the "Have fun staying poor" crap.

Re: Ftx.com Has Probably Collapsed

#59

Post by hanniabu » Thu, Nov 10, 2022, 4:58 AM UTC

TedDoesntTalk wrote: post #30

dylan604 wrote: post #19

Earlier quoted context omitted.

I keep seeing these headlines, and I keep really trying to feel sorry for these people that are potentially loosing their arses. However, I just can't get there. NFTs are the ones I'm really LOLing about vs the currency plays, but since the currencies are failing too, it just kind reveals the house of straw the whole thing truly is.

Empathy for people worse off than you, even for people who you think make bad decisions, is not hard. Think of someone you care for unconditionally, maybe your child, and imagine that person suffering through this because of poor decision. Would you castigate him or try to soothe him?

I would say that sucks but you were warned multiple times and still did it anyways so now you must deal with the repercussions

Re: Ftx.com Has Probably Collapsed

#60

Post by elevaet » Thu, Nov 10, 2022, 4:58 AM UTC

TedDoesntTalk wrote: post #30

dylan604 wrote: post #19

Earlier quoted context omitted.

I keep seeing these headlines, and I keep really trying to feel sorry for these people that are potentially loosing their arses. However, I just can't get there. NFTs are the ones I'm really LOLing about vs the currency plays, but since the currencies are failing too, it just kind reveals the house of straw the whole thing truly is.

Empathy for people worse off than you, even for people who you think make bad decisions, is not hard. Think of someone you care for unconditionally, maybe your child, and imagine that person suffering through this because of poor decision. Would you castigate him or try to soothe him?

If it was my kid, both. Only soothing or only castigating would miss the opportunity to teach and learn. With a balance you can move forward and grow.