Cryptocurrency

[Ames]

But didn't FTX release their own token in the form of FTT that they used to leverage those investments?

They did. This really comes down to a run on the bank. FTX should have had customer funds available to cover a run. They were investing and using customer funds to prop up Alameda poor investments. FTT was just the mechanism to transfer the funds. And crypto is very good at doing that.

 

[brianhos]

I think @BryceC said he would pick some up for 10k at some point. That still your target bro?

Way way below that, bitcoin will eventually get to $0 once governments get sick of all the scams.

 

[Ames]

Way way below that, bitcoin will eventually get to $0 once governments get sick of all the scams.

Are they going to get rid of the internet and email because of all the scams? What about gift cards? Gift cards are a favorite of scammers these days.

What about landlines? Are they even used for anything other than scams?

 

[Cyclonepride]

Way way below that, bitcoin will eventually get to $0 once governments get sick of all the scams.

They don't like competition in that regard

 

[CyCrazy]

Are they going to get rid of the internet and email because of all the scams? What about gift cards? Gift cards are a favorite of scammers these days.

What about landlines? Are they even used for anything other than scams?

Lol this is so absurd, its comical.

 

[clonehome]

They did. This really comes down to a run on the bank. FTX should have had customer funds available to cover a run. They were investing and using customer funds to prop up Alameda poor investments. FTT was just the mechanism to transfer the funds. And crypto is very good at doing that.

This speaks to a fundamental problem with crypto. Although somewhat controversial, fractional reserve lending has existed in traditional banking since the origin of the Federal Reserve in the early 1900s. But I don’t expect my crypto exchange to do it. Traditional banking has regulations around reserve requirements, leverage ratios, collateral, disclosure, reporting, not to mention FDIC backing up to $250 grand per account. Crypto has none of that. When I hear that “a run on the bank” sunk FTX I think how the **** is that possible? Every client should have expected to be able to withdraw every token at any time.

 

[Ames]

This speaks to a fundamental problem with crypto. Although somewhat controversial, fractional reserve lending has existed in traditional banking since the origin of the Federal Reserve in the early 1900s. But I don’t expect my crypto exchange to do it. Traditional banking has regulations around reserve requirements, leverage ratios, collateral, disclosure, reporting, not to mention FDIC backing up to $250 grand per account. Crypto has none of that. When I hear that “a run on the bank” sunk FTX I think how the **** is that possible? Every client should have expected to be able to withdraw every token at any time.

I mean if you want an exchange that's safer use one that's US based, audited, and holds fund 1:1. Like Coinbase for example.

I can buy foreign stocks OTC also. No idea about their financials. To me FTX is a similar risk.

To be fair FTX never said it was a bank. Celsius did try to make banking claims. To me Celsius should have been made to follow banking regs.

 

[JustAnotherTimeline]

This speaks to a fundamental problem with crypto. Although somewhat controversial, fractional reserve lending has existed in traditional banking since the origin of the Federal Reserve in the early 1900s. But I don’t expect my crypto exchange to do it. Traditional banking has regulations around reserve requirements, leverage ratios, collateral, disclosure, reporting, not to mention FDIC backing up to $250 grand per account. Crypto has none of that. When I hear that “a run on the bank” sunk FTX I think how the **** is that possible? Every client should have expected to be able to withdraw every token at any time.

It's not a fundamental problem. It's only a problem when people try to make crypto into something that it isn't. In fact, the FTX happenings are quite the opposite from traditional defi where loans are only available on an overcollateralized basis via smart contracts and liquidations are automatic.

 

[frackincygy]

Tumblr Blog Linked to Ex-Alameda CEO Explored Race Science, ‘Imperial Chinese Harem’ Polyamory - Decrypt

Posts from a blog linked to Caroline Ellison, Alameda Research’s former CEO, reveal the FTX-affiliated executive’s controversial views.

decrypt.co

Cannot wait for the Netflix mini-series on this whole charade... FTX (SBF) reportedly funneled $10B (in client funds) to Alameda (who's CEO was part of the SBF 'circle' and who dated him on/off) with up to $1B still 'missing'. What a time to be alive!

 

[BryceC]

It doesn't have to be difficult. Europe seems to be making headway. Pro-crypto folks are largely in favor of this regulation.

European Council Approves Crypto Regulation Bill

The European Council has passed the Markets in Crypto-Assets (MiCA) regulatory bill; final voting will be held on October 10.

www.investopedia.com

I don't think this nearly addresses the level of regulation required, so that's why I'm still bearish. I could be completely wrong and that's fine.

 

[clonehome]

This is a recent event in my industry (capital markets technology) that doesn’t bode well for the viable side of crypto — practical uses for the underlying blockchain tech. It’s long been suggested that blockchain could become the new method for securities clearing and settlement but this is the largest initiative I’m aware of and after 7 years and $170mm they scrapped it. It’s not to say that another exchange can’t make it work but this will make people gun shy.

Never mind crypto as a currency, I think it’s pretty clear that is a fool’s errand.

Australia’s Biggest Stock Exchange Shelves Blockchain Project, Writes Off $170M - Decrypt

Seven years into development, the blockchain system failed to meet requirements for Australia’s biggest stock exchange ASX.

decrypt.co

 

[Mr.G.Spot]

They did. This really comes down to a run on the bank. FTX should have had customer funds available to cover a run. They were investing and using customer funds to prop up Alameda poor investments. FTT was just the mechanism to transfer the funds. And crypto is very good at doing that.

To cover a run: invest in safe assets and have real capital on a GAAP basis. FTX had neither.

 

[Mr.G.Spot]

This speaks to a fundamental problem with crypto. Although somewhat controversial, fractional reserve lending has existed in traditional banking since the origin of the Federal Reserve in the early 1900s. But I don’t expect my crypto exchange to do it. Traditional banking has regulations around reserve requirements, leverage ratios, collateral, disclosure, reporting, not to mention FDIC backing up to $250 grand per account. Crypto has none of that. When I hear that “a run on the bank” sunk FTX I think how the **** is that possible? Every client should have expected to be able to withdraw every token at any time.

Banking has all of these rules to cover fraud and poor management. Crypto for some reason thinks these don't exist. Fantasy land.

 

[Mr.G.Spot]

This is a recent event in my industry (capital markets technology) that doesn’t bode well for the viable side of crypto — practical uses for the underlying blockchain tech. It’s long been suggested that blockchain could become the new method for securities clearing and settlement but this is the largest initiative I’m aware of and after 7 years and $170mm they scrapped it. It’s not to say that another exchange can’t make it work but this will make people gun shy.

Never mind crypto as a currency, I think it’s pretty clear that is a fool’s errand.

Australia’s Biggest Stock Exchange Shelves Blockchain Project, Writes Off $170M - Decrypt

Seven years into development, the blockchain system failed to meet requirements for Australia’s biggest stock exchange ASX.

decrypt.co

Blockchain, in theory, should be able to have forensic abilities to analyze every transaction from their inception. What are these chances with fraud, lack of knowledge, no accounting system, hubris and lack of experience?

 

[Ames]

This is a recent event in my industry (capital markets technology) that doesn’t bode well for the viable side of crypto — practical uses for the underlying blockchain tech. It’s long been suggested that blockchain could become the new method for securities clearing and settlement but this is the largest initiative I’m aware of and after 7 years and $170mm they scrapped it. It’s not to say that another exchange can’t make it work but this will make people gun shy.

Never mind crypto as a currency, I think it’s pretty clear that is a fool’s errand.

Australia’s Biggest Stock Exchange Shelves Blockchain Project, Writes Off $170M - Decrypt

Seven years into development, the blockchain system failed to meet requirements for Australia’s biggest stock exchange ASX.

decrypt.co

Nah. They were too early. If they had issues with security or anything important it would be bad. They had issues with speed. All of those are being addressed right now. ETH with layer 2's doing roll ups or them just using a chain that's been optimized are all starting to happen. They were just too early with the project. Really everything is early right now. So many people seem to think crypto is done and fully featured. It's early.

 

[Mr.G.Spot]

Nah. They were too early. If they had issues with security or anything important it would be bad. They had issues with speed. All of those are being addressed right now. ETH with layer 2's doing roll ups or them just using a chain that's been optimized are all starting to happen. They were just too early with the project. Really everything is early right now. So many people seem to think crypto is done and fully featured. It's early.

Study the banking system. It took 70-80 years to start creating standards, rules, capital ratios, lending standards, etc. Time frame from 1850's to post depression. They continue to evolve for money center banks and small banks. In today's dollars, billions were lost.

Crypto is still in its infancy which will result in more FTX's. Rules will evolve. This will be a big test for Blockchain as the forensic work starts.

 

[iowastatefan1929]

Programable money is coming, and who will be writing the program? The government. You think you are buying bitcoin with the next stimmy check, think again. You are buying solar panels and you have 30 days to do it. So go hide your bitcoin under your bed, we will see how that works for market liquidity.

 

[dafarmer]

Iowa State grad. 2003. 36 reading comprehension act. I think faster than I type. Anyhow, I'm literally telling you guys the future. The choice is nuclear war, or a new global neutral reserve currency. FTX is a small piece of the puzzle, but an important one. The banks are involved too. You still need a bank to wash the funds and get them from the exchange into the banking system. Start with silvergate.

Also, you're just being disingenuous about the bombs falling on Poland. People are trying to invoke article 4 of NATO. Attack on one is an attack on all. We haven't been this close since Cuban missle crisis. The e4-b (Nightwatch, aka doomsday plane) has been flying overseas with the Biden admin ever since the queen's death, so we can take your word for it, or watch what the military is actually doing.

So please, I can't wait for you to comment on stuff you know absolutely nothing about.

Don’t seem like it bothers you.

 

[dafarmer]

Way way below that, bitcoin will eventually get to $0 once governments get sick of all the scams.

I might buy 100 at .02. As good of odds as a power ball ticket of getting rich.

 

[Mr.G.Spot]

Yep your nuts.

You are nuts......not "your nuts"