FTX, Alameda proposes liquidity plan for Voyager customers

[Wapfika]

FTX Proposes Joint Plan to Offer Early Liquidity to Voyager Digital's Customers in Bankruptcy Proceeding.

• Customers Would Receive Immediate Liquidity and the Option to Signup with FTX
• Voyager Debtors Can Continue to Pursue Three Arrows Capital for Additional Recoveries

This is a well played move for FTX because they will forced this customers to use there exchange and have profit on it from trading fees. I was skeptical before on why Sam interested on helping Voyager before but now I know why he is interested on this dying company. It's sad to hear that investors will received only part of there money but still it's already good than nothing.

Source:https://www.coindesk.com/business/2022/07/22/ftx-to-offer-early-liquidity-to-customers-of-bankrupt-crypto-lender-voyager/

[jackg]

Do we know how much of a proportion they're expecting to be paid or is that figure being kept secret/finalised.

It's probably an advertising ploy of more of a "putting our name in the media", they'll probably have got the people they bailed out investing in them without putting an ad on the liquidity redemption page though too (and extra customers).

[DaveF]

It's actually why a lot of companies buy others that are in distress.

If they know the general cost of acquiring a customer within a few percentage points and they know how many customers the place they want to buy has it's just math at that point.

You have to figure in 'loss' which would include duplicate customers, those who don't want to use your company for whatever reason, those who will no longer consider using your or any other similar service and so on. But, it's not a bad idea in general.

The question is can they make it work if they do acquire Voyager or will that drag down FTX.

-Dave

[OcTradism]

This is a well played move for FTX because they will forced this customers to use there exchange and have profit on it from trading fees. I was skeptical before on why Sam interested on helping Voyager before but now I know why he is interested on this dying company. It's sad to hear that investors will received only part of there money but still it's already good than nothing.

It is good for FTX with their reputation to rescue projects that have huge communities behind. In future, FTX will have deals to buy those platforms at very good discounts.

For investors who have money stucked at Voyager will have better support to get compensation. Long waiting time to receive gradual compensation is still better than nothing. In their eyes, FTX and Alameda are like heroes. In future, if FTX and Alameda take over those companies, they will receive very strong support from Voyager users.

In addition, those users will have more reasons to use FTX exchange like loyal fans.

[Wind_FURY]

Do we know how much of a proportion they're expecting to be paid or is that figure being kept secret/finalised.

It's probably an advertising ploy of more of a "putting our name in the media", they'll probably have got the people they bailed out investing in them without putting an ad on the liquidity redemption page though too (and extra customers).

Plus the money must come from somewhere. FTX doesn't have the privilege nor the power to print money like the Federal Reserve can to issue bail outs. FTX is playing the role of the Keynesians, but they should be careful. Because not having enough conviction to pump money in the hole will have atrocious consequences.

[teosanru]

FTX Proposes Joint Plan to Offer Early Liquidity to Voyager Digital's Customers in Bankruptcy Proceeding.

• Customers Would Receive Immediate Liquidity and the Option to Signup with FTX
• Voyager Debtors Can Continue to Pursue Three Arrows Capital for Additional Recoveries

This is a well played move for FTX because they will forced this customers to use there exchange and have profit on it from trading fees. I was skeptical before on why Sam interested on helping Voyager before but now I know why he is interested on this dying company. It's sad to hear that investors will received only part of there money but still it's already good than nothing.

Source:https://www.coindesk.com/business/2022/07/22/ftx-to-offer-early-liquidity-to-customers-of-bankrupt-crypto-lender-voyager/

This just proves how smart Sam is to first do sort of an hostile takeover of the Voyager whose bankruptcy obviously could have been pretty bad for FTX and then very intelligently gave them the funds in his own exchange which will bring in some new customers in the exchange for zero cost and there are fancy chances that these people have would stay with this exchange only and only won't switch their money to any other place.

[jackg]

The exact percentage is still undetermined since this just a proposal plan and they are not willing to disclosed anything to the public but I’m pretty sure it’s below 50% considering how bad the current market right now.

I've seen people say in a lot of places that many bankruptcy proceedings are lucky to get 1% but I imagine ftx will be able to bail out/and hopefully try to give a higher percentage.

The supposed to be rescue of FTX is just a drama to get profit from distress investors that will surely liquidate there crypto in fiat directly on FTX.

Let's hope this is all it is. I'm having visions of ftx trying to sell a new stablecoin like bitfinex did after some investors lost funds (and this could be a way to return funds back to the users in full - over time - but would be very costly for ftx, perhaps too costly unless there's something valuable they're hoping to acquire from voyager).

Plus the money must come from somewhere. FTX doesn't have the privilege nor the power to print money like the Federal Reserve can to issue bail outs. FTX is playing the role of the Keynesians, but they should be careful. Because not having enough conviction to pump money in the hole will have atrocious consequences.

I doubt they'd get much negative press for pulling out though. It's not their company that went bankrupt, it's another they're trying to patch up.

They'll get investors angry with them for not offering something high enough or competitive enough which might be something they'd listen to and try to improve their image by fixing the issue but I don't think it's their burden they're taking on here.

[mk4]

I was skeptical before on why Sam interested on helping Voyager before but now I know why he is interested on this dying company.

I mean, SBF is a businessman and is running companies; he wouldn't just randomly "help" Voyager — a competitor, just because he want to (even if SBF does a lot of charities). Of course he'll need to get something in return.

[worle1bm]

I was skeptical before on why Sam interested on helping Voyager before but now I know why he is interested on this dying company.

I mean, SBF is a businessman and is running companies; he wouldn't just randomly "help" Voyager — a competitor, just because he want to (even if SBF does a lot of charities). Of course he'll need to get something in return.

Right he see opportunity to attract new customers to FTX as option is with signup on the exchange and will earn from them so he is smart businessman which is why we always see SBF coming up with these liquidity options and debt pay off for the bankrupt capital funds these days as they have personal motive hidden in these helps.

[Husires]

I do not think that the trading fees are the only reason for this transaction because it does not represent a lot of money, but rather the acquisition of the clients of Voyager and thus increase their data base in any future negotiation.
I think that FTX will be the biggest winner if the rest of the platforms face any economic problems as they know what they are doing, and it is also good to improve Voyager's reputation, which people will trust if it is under the management of a reliable body.

[Wind_FURY]

Plus the money must come from somewhere. FTX doesn't have the privilege nor the power to print money like the Federal Reserve can to issue bail outs. FTX is playing the role of the Keynesians, but they should be careful. Because not having enough conviction to pump money in the hole will have atrocious consequences.

I doubt they'd get much negative press for pulling out though. It's not their company that went bankrupt, it's another they're trying to patch up.

They'll definitely get a "good image" for issuing bail outs, but that's not the point. The point is no entity should issue a bail out if the entity doesn't have enough money, or enough conviction to ensure that the bail out actually works. FTX will only be throwing good money after bad if still Voyager still fails after the "effort" of a failed bail out.

[crwth]

I think their decision of Sam is a big baller move because he is not just thinking about himself. Still, he is thinking about the entire cryptocurrency economy because if one big company known for cryptocurrencies went bankrupt. Nothing was done; how would it look to the public that this happened? Imagine letting them be bankrupt, and Sam just thought of himself? The cryptocurrency market would suffer nonetheless, so his move is excellent.

[OcTradism]

I think their decision of Sam is a big baller move because he is not just thinking about himself. Still, he is thinking about the entire cryptocurrency economy because if one big company known for cryptocurrencies went bankrupt. Nothing was done; how would it look to the public that this happened? Imagine letting them be bankrupt, and Sam just thought of himself? The cryptocurrency market would suffer nonetheless, so his move is excellent.

Sam actually does a big good thing for community and it is meaningful for FTX and Alameda Research too.

We can not know the intention behind this but we can see this rescue effort will be win-win-win for all: in-troubled companies/ ventures; crypto community; and FTX + Alameda Research.

I don't think Sam will do it if FTX and Alameda Research won't get any benefit after all. He generously does it for the community but it is definitely related to long term future of FTX and Alameda Research too.

They will gain their reputation in this chaos and in future, they will become bigger.

[crwth]

Sam actually does a big good thing for community and it is meaningful for FTX and Alameda Research too.

I think it's the entirety, not just FTX itself. He is not that selfish though, knowing his decision-making. That's just my view on it though.

We can not know the intention behind this but we can see this rescue effort will be win-win-win for all: in-troubled companies/ ventures; crypto community; and FTX + Alameda Research.

It's for the totality of the viewing of crypto of the general people. And since they are doing this, they really deserve the future to become bigger overall. That's why I see them being greater in the future compared to others.

[cryptoaddictchie]

The exact percentage is still undetermined since this just a proposal plan and they are not willing to disclosed anything to the public but I’m pretty sure it’s below 50% considering how bad the current market right now.

Any money that will be paid off is better than receive nothings at all. Sam is a good man, I doubt that he has hidden agenda here except to help the fallen users and also it could help the crypto community somehow regain trust. With the likes of FTX, Binance, somehow we can survive this instances. Like the massive tragedy on luna and other companies that fall down.

Voyager should accept this deal or have shame to their investors for their wrong calculations of the market movement.

[wiss19]

It's sad to hear that investors will received only part of there money but still it's already good than nothing.

What is sadder there is the fact that they will also be charged by some fees for using the crypto exchange. The money that they will be getting can even get lesser but like you said, this is better than not getting anything at all. They can still roll out this money and if they get lucky, they can be able to recover the full amount that they have lost before and then maybe earn some extra dollars.

I think that it was also the ftx exchange last time who got involved on some crypto partnerships. This crypto exchange is really trying hard only to stay relevant on the game because they also know that they have lots of big competitors out there.