Bitcoin / Bitcoins / Crypto Currency

Speculation of upcoming contagion
https://twitter.com/hodlKRYPTONITE/status/1590032122647306240

I may be missing something but looks a bit like binance were involved in starting the run before then buying them out
https://twitter.com/cz_binance/status/1589283421704290306

This is a good summary
https://twitter.com/ShaanVP/status/1590029012000440320

https://twitter.com/wassielawyer/status/1590025892994371584

I think that's true, but if FTX had been operating as they claimed, then Binance's holdings of FTT should have been fully backed and there would have been no ability for such an action to trigger FTX's collapse.

Just another crypto castle built on crypto sand. There will be hundreds more. The big reckoning will be if/when Binance collapse.

CZ just put out a statement on it all

https://twitter.com/cz_binance/status/1590351182513729544

Just another crypto castle built on crypto sand.

Not sure that's quite true, it wasn't a crypto issue that was the downfall but appears to be a greed issue, they weren't happy turnover large volume but felt the need to leverage customers deposits as well. Between Almeda and FTX they shouldn't of been able to fuck up being filthy rich but somehow it wasn't enough

For me, a failure of a crypto company to operate responsibly is a crypto issue.

In the same way that if a bank was caught in the same situation, it would be a banking issue.

Between Almeda and FTX they shouldn't of been able to fuck up being filthy rich but somehow it wasn't enough

The thing is, FTX were never supposed to be about being filthy rich.

FTX was founded for the purpose of generating as much wealth as possible, to be used for charitable causes following the "earning to give" principle of effective altruism.

The whole shooting match stinks.

Sounds like a regulatory issue....FTX.us is unaffected

For me, a failure of a crypto company to operate responsibly is a crypto issue. In the same way that if a bank was caught in the same situation, it would be a banking issue.

We would blame the bank / bankers / bank regulators but we wouldn't blame USD or any other fiat currency specifically. These "crypto" crises are really just banking crises - if you got rid of bank regulation the fiat banking system would be vulnerable to exactly the same issues.

Yeah crypto is still the wild west and too many folk are taking major advantage of that. There will be money backdooring these failed things right left and centre and really there is no major issues for the ones doing it sadly.

‘A hedge fund’s solvency should not depend on a carnival ticket that was invented to facilitate, & which derives all its value from, trade on an exchange that is owned by the same person as the hedge fund. This is circular & creepy & probably not sustainable’

FT summary of the situation

The traders I work with are talking about rumours that Binance are about to pull out of the FTX deal.

Isn't there a more fundamental point, which is that the safety of customer funds should depend on the solvency of a hedge fund?

Yeh, thats fair

Isn't there a more fundamental point, which is that the safety of customer funds should depend on the solvency of a hedge fund?

Thats kind of why I see this as a crypto problem. These projects want to be seen as safe as a bank. Binance claims to want to be safer than a bank.

Isn't this similar to what Barclays did with Qatar in the GFC? Rogue operators gonna rogue operate

The point is fair though, a lot of cryptotwitter peeps saying they have been caught out by being complacent and trusting FTX as somewhere safe to leave money parked

Isn't this similar to what Barclays did with Qatar in the GFC? Rogue operators gonna rogue operate

I'm not sure it's a great comparison. Barclays desperately needed capital (not liquidity) and was willing to pay up in order to get it. The more salacious claim - that Barclays loaned the Qataris the money which was then injected back into Barclays as equity - was dismissed.

The more salacious claim - that Barclays loaned the Qataris the money which was then injected back into Barclays as equity - was dismissed.

Ah OK, I thought the FCA were still pursuing it

And Binance walks away

https://twitter.com/binance/status/1590449161069268992?s=20&t=40LDAaYE8a618i_C9-glbQ

Looks like CZ can't help as its a capital problem not liquidity problem, so it saying the deal is off

Apparently Sam filed for bankruptcy!
https://twitter.com/CryptoCrib/status/1590444120308592640

People estimating $6-10bn missing in funds,mind boggling, guess he'll be off on holiday with Do Kwon

it's all fucked. not before time IMHO

And surprise surprise bit boy crypto has said it was gonna go to the moon. How the fuck does that guy have a platform, he's a shiller and a fake.