FTX comedy and might be another exchange that bites the dust?

[bbc.reporter]

I was very bullish on FTX and Sam Bankman-Fried and have also predicted that it might kill Binance and become the king of centralized exchanges. However, it appears I have another prediction wrong hehehe. This review by Coindesk on a private document says that much of FTX's equity is on their exchange token FTT and much of Alameda Research's equity is on illiquid tokens that they created and issued in Solana. The tokens are MAPS, OXY, SRM and FIDA.

They cannot sell them without dumping the market lower. Would it be correct for me to speculate that FTX might be insolvent or is this review on a private document which we are uncertain where it came from just another fud from Coindesk?



Billionaire Sam Bankman-Fried’s cryptocurrency empire is officially broken into two main parts: FTX (his exchange) and Alameda Research (his trading firm), both giants in their respective industries.

But even though they are two separate businesses, the division breaks down in a key place: on Alameda’s balance sheet, according to a private financial document reviewed by CoinDesk. (It is conceivable the document represents just part of Alameda.)

That balance sheet is full of FTX – specifically, the FTT token issued by the exchange that grants holders a discount on trading fees on its marketplace. While there is nothing per se untoward or wrong about that, it shows Bankman-Fried’s trading giant Alameda rests on a foundation largely made up of a coin that a sister company invented, not an independent asset like a fiat currency or another crypto. The situation adds to evidence that the ties between FTX and Alameda are unusually close.

Read in full https://www.coindesk.com/business/2022/11/02/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet/

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[NotATether]

I don't think FTX is going down any time soon but the same cannot be said for Alameda Research should FTX decide that dumping those illiquid tokens are necessary to protect themselves.

Of course all shots will be called by SBF, and he will obviously make maneuvers that best protect his financial interests.

[mk4]

Huge emphasis on the part that the document contains incomplete data about Alameda. We can't know for sure unless we know the entire story, but I doubt FTX/Alameda is in trouble. Very unlikely that those 4 tokens(probably along with SOL) make up a huge pie of Alameda/FTX's assets.

[stompix]

I was very bullish on FTX and Sam Bankman-Fried and have also predicted that it might kill Binance and become the king of centralized exchanges.

And I was telling you he is a wannabe JP Morgan and from the looks of it might end like JT Heath (the guy was lynched).

No wonder he has become so eager to see everything regulated and which that much emphasis in his speech on stablecoins and tokens, he knows that with one wrong step, and FTX token is in trouble, and if that happens the rest goes like a house of cards without a money printing machine, nobody with a brain isn't aware of that after the latest series of fiascos, and he, with his involvements in voyager and celsius knows very well what happens.

That being said, FTX the exchange won't go down, the thing is just way too profitable, but the empire that he wants to create for our sake might not see the end of this bear season.

[dkbit98]

They cannot sell them without dumping the market lower. Would it be correct for me to speculate that FTX might be insolvent or is this review on a private document which we are uncertain where it came from just another fud from Coindesk?

Sam invested and donated lot of money to politician so I don't think he and his exchange will be in trouble any time soon, but he is also a shitcoiner who only cares about profit.
That is why I was not really surprised when I heard he want's to have more centralization and more regulations in cryptocurrency space.
On positive side, I have to give him small credits for still keeping Bitcoin withdrawals totally free without any fees charged on FTX exchange.
On negative side.... better watch short video posted below, and don't keep any coins on FTX.

Why I Think Sam Bankman-Fried is a Fake:
https://www.youtube.com/watch?v=2D5PcagsgDQ

[NeuroticFish]

On positive side, I have to give him small credits for still keeping Bitcoin withdrawals totally free without any fees charged on FTX exchange.

This is just a business strategy to get a bigger number of customers. It can also be a strategy to gather as much KYC data as he can... and I don't want to think what he can use that for.

I agree he's fake. I agree that all he cares about is profit and jumping heavily into "crypto" may hurt his finances badly if bitcoin bull market doesn't come quick and save him.
I think that the only correct morale of the story is "never keep too much money and for too long in custodial accounts" (eg exchanges). Not only FTX.

[dkbit98]

This is just a business strategy to get a bigger number of customers. It can also be a strategy to gather as much KYC data as he can...

Maybe, but you can still use FTX exchange without passing any KYC verification (.com version), you will be very limited for withdrawal amount per day, but it will still be usable.
Now, that doesn't meant thex can't ask you for verification at any time, just like any other centralized exchange can do, so I am not really recommending them

[AB de Royse777]

Maybe this is off-topic, I don't know. I heard from a friend that Huobi was scamming their users by giving misleading information. Now they are denying their wrong part. It happened sometimes in the last 24 hours. It has something to do with "Gala" (token or something).

[buwaytress]

This is just a business strategy to get a bigger number of customers. It can also be a strategy to gather as much KYC data as he can...

Maybe, but you can still use FTX exchange without passing any KYC verification (.com version), you will be very limited for withdrawal amount per day, but it will still be usable.

Try signing up with a throwaway account. I guarantee in the future you'll suddenly be getting invites and spam from new crypto opportunities or ventures down the road from questionable startups. Shady begets shady. All exchanges do that, I feel, judging from how bloated my throwaways have become, and when the breadcrumbs lead to them, it's a simple: damn our data storage guys were compromised.

[o_e_l_e_o]

While there is nothing per se untoward or wrong about that, it shows Bankman-Fried’s trading giant Alameda rests on a foundation largely made up of a coin that a sister company invented, not an independent asset like a fiat currency or another crypto.

Their users won't care. Look at Bitfinex. They do exactly the same thing and worse with Tether. They even printed $800 billion USDT out of thin air and then loaned it to themselves to prevent Bitfinex from going bankrupt, and yet somehow both Bitfinex and Tether continue to grow and be ever more widely used. You can do pretty much any shady stuff you like in crypto and still attract morons to give you their money.

After seeing the incredibly shady stuff platforms like Celsius and Voyager were doing, then I have no doubt whatsoever that FTX are also doing similar things behind the scenes. This revelation is probably the least of it.

All exchanges do that, I feel, judging from how bloated my throwaways have become, and when the breadcrumbs lead to them, it's a simple: damn our data storage guys were compromised.

You should work on the assumption that any and all data you give to a centralized exchange, from an email address to a scan of your passport, will eventually be sold, shared, or leaked to a variety of third parties.

[dkbit98]

Maybe this is off-topic, I don't know. I heard from a friend that Huobi was scamming their users by giving misleading information. Now they are denying their wrong part. It happened sometimes in the last 24 hours. It has something to do with "Gala" (token or something).

I don't think they scamming but I heard they are delisting their own ''stable coin'' HUSD that crashed hard and it's now way below 1$ peg, so it could be something related with that.

Try signing up with a throwaway account. I guarantee in the future you'll suddenly be getting invites and spam from new crypto opportunities or ventures down the road from questionable startups. Shady begets shady. All exchanges do that, I feel, judging from how bloated my throwaways have become, and when the breadcrumbs lead to them, it's a simple: damn our data storage guys were compromised.

I am always using junk addresses for cases like this, and so far I didn't receive any spam emails from FTX exchange.
That means for each exchange I use dedicated email address that is (usually) not connected with any other service, so I am sure about source if something spam-like comes.
This is never connected with my real identity and I never send them any documents, this is just for testing purposes

You should work on the assumption that any and all data you give to a centralized exchange, from an email address to a scan of your passport, will eventually be sold, shared, or leaked to a variety of third parties.

Yeah, and that can happen to anything you register online, it doesn't have to be crypto related stuff.

[stompix]

You can do pretty much any shady stuff you like in crypto and still attract morons to give you their money.

And not only that, it's actually worse.
The same morons will defend this fiat coin to the death, arguing that money printing is not bad because is backed by the same printer, that the coins are secure because that's what some random guy on Twitter said, and most important, it can't fail because he has some, and this will lead to more and more falling for this "stable coin".

I am sure that despite the whole luna/terra fiasco, despite the fact that everyone is saying look what happened, you need to be careful, despite all the sob stories on Twitter from the victims, the same "investors" who put their money in just to keep them safe will again fall for the next scam or failure. And when that happens I'm willing to bet that at least a big portion of the ones screaming how they lost everything with tether are the ones that screamed they have lost everything with ust.

And it will keep on going like this forever, no coin can fix human nature, but human nature can destroy any coin.

[o_e_l_e_o]

The same morons will defend this fiat coin to the death, arguing that money printing is not bad because is backed by the same printer, that the coins are secure because that's what some random guy on Twitter said, and most important, it can't fail because he has some, and this will lead to more and more falling for this "stable coin".

USDT is the prime example of this. I cannot fathom why anyone stills trusts this absolute junk. First they said it was backed up 1-to-1 with USD. Then they said it was backed up 1-to-1 with USD and other assets. Then they dropped the 1-to-1 claim altogether, with court documents showing as little as 14% of USDT was actually backed up. Those same documents showed that Bitfinex transferred hundreds of millions of dollars to Tether on the day of their independent audits, and then transferred it all back out again the next day.

It later emerged that these "other assets" they claimed included uncollateralized loan repayments, including loan repayments to themselves from the $800 billion USDT they printed out of thin air and gave to themselves. They also included bitcoin they had purchased with the USDT they first printed. Print USDT out of thin air -> buy bitcoin with it -> claim USDT is now backed up with bitcoin. Unbelievable. And since all these revelations that USDT is an insolvent fractional reserve scam, its market cap has grown to $70 billion. The day it finally collapses a lot of people will lose a lot of money, but they can't say they weren't warned. The writing is on the wall.

And then look at centralized lending/staking platforms. Even after Celsius and Voyager collapse, people are still using such platforms. Even after BlockFi revealed they needed a bail out to the tune of $250 million, people are still depositing their coins there.

And throughout all these scams, Ponzis, insolvencies, bankruptcies, and more, I'm just sitting over here quietly using bitcoin peer to peer, as was intended in the first place, having never lost a single satoshi.

[stompix]

They also included bitcoin they had purchased with the USDT they first printed. Print USDT out of thin air -> buy bitcoin with it -> claim USDT is now backed up with bitcoin. Unbelievable.

That's what happens when you adopt a legit way of getting a loan to a money printing scheme, in a normal business procedure if a company would be offering you a special loan in which you would have to use a part of the funds for assets that can be collateralized and be part of your manufacturing or whatever your business type is, it would be legit, just as a stretch from issuing shares for expansion would come close to this.

What they are doing is just on a different level, I'm still surprised why the US is still letting them roam fee, but I'm pretty sure if one government agency will ask them to provide the proofs they are not operating like either a fractional reserve or a Ponzi scheme there will be thousands who is defended tether and blame everything on the evil gubbermint.

And then look at centralized lending/staking platforms. Even after Celsius and Voyager collapse, people are still using such platforms. Even after BlockFi revealed they needed a bail out to the tune of $250 million, people are still depositing their coins there.

Remember what I was telling you about how some defend Tether or at least are gullible enough to repeat what others tell them till it ends all over the internet?

The Tether Business Model – How Does Tether Make Money

Loans
Tether, furthermore, makes money from issuing loans to other businesses and institutions that then pay interest on those loans. 
In October 2021, for instance, Tether loaned $1 billion to Celsius Network, which is a cryptocurrency lender.

I'm just sitting over here quietly using bitcoin peer to peer, as was intended in the first place, having never lost a single satoshi.

But, but, you're losing the opportunity to lose all your money 

[o_e_l_e_o]

What they are doing is just on a different level, I'm still surprised why the US is still letting them roam fee, but I'm pretty sure if one government agency will ask them to provide the proofs they are not operating like either a fractional reserve or a Ponzi scheme there will be thousands who is defended tether and blame everything on the evil gubbermint.

Stablecoin regulation is not far off, particularly because they directly compete with the CBDCs that most governments want to implement in the near future. And once Tether start getting audited properly, you better make sure you are not holding too much USDT (or any other stablecoin for that matter). And lets not even mention that just like CBDCs they are completely centralized and even coins in your own wallets can be remotely frozen or seized against your will.

This FTX nonsense is just the same. Shady stuff going on behind the scenes, entire ecosystem built on top of a token they can print out of thin air at will and then lend/give to themselves, questionable loans and acquisitions, and users with absolutely no idea what happens to any coins they deposit to the site. As with any other exchange or any other centralized shitcoin, the advice remains the same - get bitcoin, and get it in to your own wallet.

But, but, you're losing the opportunity to lose all your money  

And yet, I'm the toxic bitcoin maxi because I advise people not to lose their money on scams and shitcoins.

[buwaytress]

All exchanges do that, I feel, judging from how bloated my throwaways have become, and when the breadcrumbs lead to them, it's a simple: damn our data storage guys were compromised.

You should work on the assumption that any and all data you give to a centralized exchange, from an email address to a scan of your passport, will eventually be sold, shared, or leaked to a variety of third parties.

I do. I've also now added to my assumptions that the right to be forgotten (GDPR) will not be respected. And with financial institutions (exchanges fall under this category in the EU I believe), they actually have the right to retain information even should you request this because of AML laws which warrant them keeping it (I believe, for 7 years).

There needs to be a service that propagates misidentification to confuse all these bloody resellers. I'd pay to have a wrong profile of me stored and uploaded everywhere.

And yet, I'm the toxic bitcoin maxi because I advise people not to lose their money on scams and shitcoins.

Unsung heroes actually are sung about a lot, with shitty lyrics

[Lucius]

As soon as I see that some crypto exchange is launching its token, it is clear to me what their priority is. There is not much difference between all those CEOs who are at least hypocritical bastards who say one thing and do something completely different - and when someone attacks Bitcoin, then they offer help in the form of some shitcoins platforms or turn their heads the other way.

Unfortunately for the minority that tries to protect their privacy and promote decentralization, the majority is so blinded by these people as some kind of crypto leaders who do good for the community, and they will stab us in the back whenever they get the chance.

#More DEX less CEX

[Rikafip]

Earlier today I stumbled upon Twitter thread that speculated Binance moved 23 million FTT tokens worth $530 million to their exchange with the obvious intention to sell it all, and just now I saw CZ tweet in which he confirms that indeed they decided to get rid off all FTT. Could it be that rats are already leaving the ship?


https://twitter.com/cz_binance/status/1589283421704290306?s=20&t=aaBCRda_K6sA-0n5k2Dfbg

[Pmalek]

Maybe, but you can still use FTX exchange without passing any KYC verification (.com version), you will be very limited for withdrawal amount per day, but it will still be usable.

Are you sure that is still the case? I heard they introduced KYC a few months ago. This article from their help center confirms that. If you are unverified, it says all you can do is browse around and explore the site. To get a $2.000 per day withdrawal limit equivalent in crypto, you need to pass level 1 KYC. But they don't require the submission of scanned copies of identity documents. 

[dkbit98]

Earlier today I stumbled upon Twitter thread that speculated Binance moved 23 million FTT tokens worth $530 million to their exchange with the obvious intention to sell it all, and just now I saw CZ tweet in which he confirms that indeed they decided to get rid off all FTT. Could it be that rats are already leaving the ship?

Who knows what CZ is doing, and I never trust anything he is saying, but it's possible they are going to make some planned collapse soon.

Are you sure that is still the case? I heard they introduced KYC a few months ago. This article from their help center confirms that. If you are unverified, it says all you can do is browse around and explore the site. To get a $2.000 per day withdrawal limit equivalent in crypto, you need to pass level 1 KYC. But they don't require the submission of scanned copies of identity documents.  

I am sure, but you don't have to believe me.
Tier 1 is not really a kyc verification, and you can write there anything you want, but there is always a risk they can later ask you to send them documents, like any other centralized exchange.
I spoke about it before, I have the account and I know what I am saying, I am not talking in relative terms, in metaphors and in theories.


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