/biz/ - Business & Finance

incredible, this chink really wants binance to be the only exchange to exist... no morals...

>>52569798
it's because binance itself is close to failing
the only way he can buy time is by sinking other ships, so people withdraw money from them and inject it into binance

CCP trying to get the edge on the crypto market.

>>52569798
FTX INVESTIGATION

As of about three weeks ago, a plausible model of FTX Trading Ltd. and its affiliated trading firm Alameda Research would have been:

1. FTX and Alameda make a lot of money.
2. Is there something fishy about that?

The standard sorts of theories would be along the lines of “Alameda and FTX supposedly operated independently, but they seemed to all be friends and live together, so maybe Alameda had privileged access to FTX’s order flow and so could make unusually profitable trades,” something like that. In fact, though, the story seems to have been more like:

1. Alameda actually lost a ton of money.
2. Then it used FTX customer money to cover its losses.

If you believed that Alameda was suspiciously profitable, and you pursued that hunch, would that have led you to the truth, which is that Alameda was suspiciously unprofitable? Maybe? Some of your intuitions — “the boundaries between FTX and Alameda are more porous than they claim” — would have served you well in uncovering the truth. Others — “Alameda makes a lot of money trading” — would not have.

>>52569852
That literally makes no sense stupid fuck

CZ needs to quit while he's ahead. Greed is what caused SBF's downfall

>>52569897
Similarly, if you believed that FTX was violating the Bank Secrecy Act, would that have pointed you to the real problems? Apparently not:

>The US Attorney’s Office for the Southern District of New York, led by Damian Williams, spent several months working on a sweeping examination of crypto currency platforms with US and offshore arms and had started poking into FTX’s massive exchange operations, according to people familiar with the investigation.

>The focus was on compliance with the Bank Secrecy Act, the people said. Authorities have used the law, requiring financial institutions take steps to prevent money laundering and terrorism financing, to go after crypto platforms that allegedly falsely claimed that they don’t serve US customers. Bahamas-based FTX operated one of the world’s largest international crypto exchanges, as well as a separate and much more limited venue called FTX US that said it complies with the act.

>It’s unclear whether prosecutors in Manhattan reached any conclusion in their probe before FTX -- valued at nearly $32 billion in a January financing -- collapsed, sending the crypto market into a dive and raising questions about the accuracy of its pledges to safeguard customer assets. That put the federal investigation into a new trajectory, the people said.

>>52569904
Makes perfect sense, chinky.

>>52569798
I hate this dumb chink

NEVER forget when he wanted to rollback the Bitcoin blockchain in 2018 because his shitty exchange got hacked

>>52569911
Of all the illegal things an offshore crypto exchange could do, accepting deposits from US customers is the most obvious one to worry about. If you were an ambitious prosecutor and you called up FTX and said “we need you to prove that you don’t accept US customers,” would you have learned anything interesting about FTX’s other problems? One thing that we have all learned recently is that FTX’s record-keeping was a mess, in ways that might have caused or at least encouraged the misuse of customer funds. If you called up FTX and said “prove that you don’t accept US customers” and FTX said to you “hmm, interesting, you want a list of our customers? Not sure we have that anywhere,” that might have raised additional, non-Bank-Secrecy-Act-related red flags. “Wait now that I have you here, prove that you actually have your customers’ money,” would have been a reasonable follow-up question, when you saw the disarray of FTX’s records.

On the other hand, if you are a New York federal prosecutor, and you can’t find a Bank Secrecy Act violation, maybe you don’t care about the rest? If FTX wasn’t handling money for US customers then why should a US prosecutor care if it was also misusing the money? I am pretty sure we’ll get answers to those questions soon enough.

>>52569924
BAIN

Speaking of investigations that failed to find problems at FTX:

>Bain & Co. was among consulting firms that helped conduct due diligence for Tiger Global Management’s investment in now-defunct crypto exchange FTX, according to people familiar with the matter.

>Tiger Global, which pays Bain more than $100 million a year to research private companies, has now written down its $38 million FTX stake to zero, the people said. Sam Bankman-Fried’s oversight of a vast web of FTX-linked entities was one of the risks highlighted during the due-diligence process, but the money manager still believed it was a sound investment at the time, one of the people said. …

>Tiger Global’s FTX investment was a tiny portion of its $12.7 billion Private Investment Partners 15 fund. The firm first backed FTX in October 2021, when the crypto exchange was valued at $25 billion, and again in January at a $32.5 billion valuation, according to PitchBook data.

>The FTX bet was one of 358 venture capital investments Tiger Global made last year, and one of 290 so far in 2022, according to PitchBook.

I was OK with him trying to end FTX because they tried to fuck with him on Binance and they were a menace to the whole crypto market anyway. But now he's acting like a real slimey chink.

>>52569906
It was fraud, it was never a legitimate exchange.

>>52569941
Tiger Global called Bain and was like “hey guys, drop everything, we are thinking of investing 0.3% of our fund in a giant crypto exchange that makes a billion dollars a year and has Tom Brady as a spokesman, do you think that’s a good idea,” and Bain dropped everything to investigate FTX, and then 20 minutes later Tiger Global called back and was like “hey guys, drop everything, we are thinking of investing 0.4% of our fund in a pre-revenue dog treat delivery service,” and Bain was like “eh I’m sure FTX is fine, you said dog treat delivery?” Tiger Global closed one investment a day last year! They famously bought absolutely everything! This one made money and had Tom Brady! It probably was not a due diligence priority.

>>52569798
coinbase/grayscale/genesis need to to out of business
>market manipulators / scammers

>>52569941
In general I am pretty sympathetic to the venture capitalists who invested in FTX. I wrote last week:

>I suppose FTX is a failure of venture capitalist due diligence, but it’s an odd kind. The usual VC due diligence failure is, like, you back an entrepreneur who promises a futuristic product, and the product doesn’t work. FTX worked fine: People liked its technology, and it seems to have made money. The problem was in its balance sheet, which was full of snakes, and its governance, which put all the snakes there. Ideally the venture capitalists would have spotted that in due diligence, but the typical VC company has a very simple balance sheet and terrible governance, so it is sort of understandable that they sailed right by those problems.

But Tiger Global’s whole thing was that they moved faster, did less due diligence and were more founder-friendly than anyone else. The good news is that they were also more diversified than everyone else, more of an index fund of private tech companies than a handful of concentrated bets that they really believed in. They got this one wrong, but so did a lot of people who probably put more time into it.

>>52569798
Sam was trying to protect us from this guy. When Jews lose we all lose.

>>52569975
PEOPLE ARE WORRIED ABOUT CRYPTO MARKET LIQUIDITY

Oh man:

>The wipeout of Sam Bankman-Fried’s crypto empire, including its crown jewel FTX exchange and sister trading desk Alameda Research, is helping to reduce liquidity across the crypto market.

>The decline has been dubbed the “Alameda Gap” by blockchain-data firm Kaiko, named for the trading group at the center of the storm which is closing its books. Plunges in liquidity usually come during periods of volatility as trading shops pull bids and asks from their order books to better regulate risks, Kaiko noted in a Nov. 17 newsletter.

>“The Alameda Gap in liquidity could be here to stay, at least in the short term,” wrote the analysts.

>These market makers fulfill an especially valuable role in the liquidity-sensitive crypto space by buying and selling coins. But as they turn more conservative in times of crisis, that results in thinner liquidity where users have greater difficulty buying or selling an asset, which in turn makes the market more volatile, said Hank Huang, chief technology officer at Kronos Research.

>“Market makers are shutting off or getting funds into a safe place first,” added Tiantian Kullander, co-founder of Singapore-based crypto trading platform Amber Group, adding that they’re “awaiting the storm to pass.”

>>52570004
One simple model of market making is that you buy a bunch of a thing as the price goes down and sell it as the price goes up; if the price is volatile but more or less mean-reverting then you make a lot of money buying low and selling high. If you buy a bunch as it goes down and then it goes down more and you buy more and it goes down more and you buy more and it goes down more and you buy more and it goes to zero and you have all of it, then that’s bad, for you. But you have provided a valuable service, to your customers.

>>52569906
Quit what? he has the funds, he has the assets, hes not doing shady shit.

Its thanks to binance that BTC and ETH reached 70k and 5k.

>>52570034
One simple (but speculative) model of how Alameda blew up is that it might have provided that valuable service during the blowup of the (rhymes with tuna) token. [2] If you are a market maker in crypto in November 2022, you might look at that example and say, you know what, I’m going to take the rest of the year off, spend some quality time with my family, try not to catch any falling knives for a bit.

>>52569798
Shit. Grayscale will fucking rek us so hard. BTC $500.00 soon

Kek, one Chinese alone is destroying the entire American crypto sector. Imagine what 1.4 billion Chinese will be able to do in the future.

>>52570048
ELSEWHERE IN KNIFE CATCHING

Who should be the lender of last resort in crypto? If some crypto project runs into liquidity trouble, who should bail it out? I think the obvious answer (besides “no one”!) is something along the lines of “a consortium of people who have made a lot of money in crypto”: Bailing out troubled crypto projects is good for the value of crypto, and people who have a lot of crypto — and who make money from crypto enthusiasm — have the most incentive to keep up the value of crypto. So for a while this summer, the lender of last resort in crypto was effectively Sam Bankman-Fried, who was a billionaire operator of a crypto exchange and trading firm. This made sense: Propping up other crypto firms was good for him, in expectation, though as it turns out it probably cost him too much money. So he is no longer available to serve as the lender of last resort, and now Changpeng “CZ” Zhao, who runs Binance, the biggest crypto exchange, wants to set up an “industry recovery fund” to take over the role. Fine.

There is a problem with this, though, which is that if crypto crashes hard enough, the people in crypto probably can’t bail it out. Loosely speaking bailing out crypto projects requires a lot of dollars, and if you have billions of dollars’ worth of crypto and crypto crashes hard enough, you won't have enough dollars to do much good. What you really want is some external source of funds to backstop crypto, so that if everyone tries to take money out of crypto someone else is putting money back in. Ideally you find some government actor and say “you can make crypto safer, more useful and more regulated; by the way part of making it safer is backstopping the price.”

we're at peak fear, people think everything is collapsing
I can say right now is a good time to buy and people ITT will call me an idiot

>>52570068
Here’s this:

>Binance Chief Executive Officer Changpeng “CZ” Zhao and several deputies met with investors in Abu Dhabi last week in an effort to raise cash for a crypto industry recovery fund, according to people familiar with the matter.

>Zhao and his team held meetings with potential backers last week, including with entities affiliated with United Arab Emirates National Security Adviser Sheikh Tahnoon Bin Zayed, who oversees a large financial empire, said the people, who spoke on the condition of anonymity because the talks were private. …

>Zhao, who moved to Dubai last year and has built close ties with the UAE leadership, is casting himself as the crypto world’s rescuer-in-chief after the spectacular downfall of Sam Bankman-Fried. After FTX’s bankruptcy, Zhao tweeted that Binance would form a recovery fund “to help projects who are otherwise strong, but in a liquidity crisis.”

>“There are still players with very strong financials and we should band together to try to help the projects in need, especially if it’s only financial need,” he said on the sidelines of Abu Dhabi Finance Week last Wednesday.

>The Binance CEO, who also spoke at the Milken Institute’s Abu Dhabi conference, had said there was significant investor interest in the industry recovery fund and that he expects to finalize commitments in the coming weeks. His conversations in the region also included proposals to engage with Middle Eastern regulators and boost crypto adoption, the people said.

>>52569798
In't for sh1tcoin in't for p00coin. Give me nuther Gregg's chicken bake...

>>52570106
Sure you can SAY that, people say stupid misguided shit on /biz/ on a minute-to-minute basis.

>>52569798
It's not FUD if it turns out to be the truth.

You can't hide a corpse forever and expect nobody will smell it.

>>52569852
>so people withdraw money from them and inject it into binance
I've actually withdrawn 2/3rds and split it across two other exchanges just incase anyone starts trying to seek 'reh'wheng'way' against binance. I.e. sbf trying to have it declared a national security issue via his dad.

>>52570064
>Kek, one Chinese alone is destroying the entire American crypto sector.
Chinese blowing up an economy? Isn't that their signature move at this point, whether it be their own or another nations?

>>52569798
Binance is afraid its going to be killed off due to regulation so they have to throw shade and kill everyone else. Otherwise if they become just another exchange, theyll be the first brought up on charges. They want to be too big to fail.

>>52570226
>fear, uncertainty, doubt
Actually it is

>>52569798
He knows that Binance is next

>>52570126
HOW'S GAMESTOP DOING?

You can just do this now; this is allowed again:

>Billionaire investor Carl Icahn began shorting GameStop Corp. during the height of the meme-stock frenzy around January 2021 and still holds a large position in the video-game retailer, according to people familiar with the matter.

>Icahn started building the short when GameStop was trading near its peak of $483 per share and still holds a large bet against the retailer’s shares, said the people, asking not to be identified because the matter is private. The investor, who has added to his position from time to time, is betting that GameStop’s stock isn’t trading on its fundamentals and will continue to fall, the people said. …

>The early response to Icahn’s short on social media was relatively measured. News of the wager was shared on Reddit in at least two threads, including in the popular WallStreetBets forum, garnering more than 250 comments as of 9:54 a.m. in Singapore. That pales in comparison to the thousands of responses to GameStop posts during the height of meme mania.

>The stock wasn’t trending on social media platforms as it did in early September, when news emerged of its partnership with Sam Bankman-Fried’s now bankrupt FTX US cryptocurrency exchange.

It was up about 3% at noon today. For a while, “billionaire investment manager has short position in popular Reddit stock” was a way to make sure that the stock went up, and no stock was more short-squeeze-y than GameStop. To the point that we once discussed a trade where (1) you buy a meme-able stock, (2) you put out a research note on the stock that implies you are short, (3) you watch Reddit push the stock up and (4) profit. You could almost imagine Icahn doing this — short 10,000 shares, go long 1 million on swap, leak the short — except, not anymore. Now the excitement is gone, and no one is going to send GameStop to the moon just because a rich guy is short.

>>52570273
November 29.

We'll see if the chink was telling the truth.

>>52569798
>>52569972
Binance is literally Third World Rage: The Exhange

>>52569904
binance deposits shot up massively after FTX collapsed

>>52570303
EVERYTHING IS SECURITIES FRAUD

Now that Elon Musk has invited Donald Trump back on Twitter, is it securities fraud for Trump to tweet? Possibly? But also it might be securities fraud if he didn’t tweet, and then started tweeting later? The problem is that Trump is committed to Truth Social, the social media ghost town of Trump Media & Technology Group, which has a long-delayed deal to go public by merging with Digital World Acquisition Corp. Semafor reports:

>Trump has repeatedly said he's happy with his own Truth Social site and won’t return, but given his relationship to both Twitter and the truth it's done little to dampen speculation that he’d resume his dominant place on the central platform. ...

>Since Trump is a core part of Truth Social’s value, rejoining Twitter could create some potential legal complications, according to Eric Talley, a professor at Columbia Law School who specializes in corporate law.

>In particular, if Trump repeatedly signals in public before a merger that he’s never joining Twitter, then closes a SPAC deal and reneges, some shareholders could decide they were misled.

>“If it’s going to look, later on, that he never had that intention” of remaining off Twitter “but he just wanted to convince people that they should go ahead and close [the SPAC deal] that’s kind of a textbook securities fraud lawsuit,” Talley said.

>If Trump does decide to rejoin Twitter without incident, his deal could affect how he uses the service. An SEC filing by TMTG notes that the former president “is generally obligated to make any social media post on TruthSocial and may not make the same post on another social media site for 6 hours” through at least June 22, 2023. That date is notably the exact same point in the 2016 cycle when Trump declared his presidential run.

>>52570344
My guess is that the Truth Social/DWAC deal is never going to close so all of this is moot. (Not investing advice! Or legal advice!) But if the deal does close, will Donald Trump somehow get sued for securities fraud for tweeting? I mean, absolutely.

NOTES:
[1] Sometimes it works that way — a “bought deal,” where the bank buys securities at a price and takes the market risk itself — but that’s not how run-of-the-mill convertible pitches work.

[2] We talked about this theory last week; I summarized it by saying “Customers could make levered bets on cryptocurrencies on FTX and be automatically liquidated if the bets moved against them, and this liquidation seems to have consisted largely of Alameda buying their positions. This was a good experience for customers — it made betting on FTX more predictable and less risky — and possibly good for Alameda, if it bought stuff that went down and then the stuff went up again. But when the token collapsed earlier this year, Alameda would (on this theory) have been buying tons of (rhymes with Tuna) all the way down, leaving it with a huge stash of worthless (rhymes with Tuna) and a big loss.” This Twitter thread fleshes out that speculation a bit.

>>52569798
THERE CAN BE ONLY ONE!

/MUSIC
it's a kind of mad chink
mad chink
MAD CHINK

If you want to read more on Matt Levine's take on Crypto, Twitter, Truth Social, Commodities and Equities and general financial shenanigans, look for his Bloomberg newsletter on Newsletterhunt.com., or you can subscribe to his newsletter directly.

He's not offering legal or investing advice, isn't selling anything, but he's widely followed in the markets community for his smart and funny insights on financial matters.
Happy Thanksgiving

>>52570433
If he's going to take over FTX's role in catching falling knives, he better hope he's immortal.

>>52570036
>Its thanks to binance that BTC and ETH reached 70k and 5k.

>>52569852
you kikes have zero proof that binance is insolvent

>>52569798
did he delete the tweet?

>>52570543
reverse ferret
https://twitter.com/cz_binance/status/1595126765143617536

>>52570543
he's such a faggot

>>52570495
At this point, I think it's on Binance and the others to prove they ARE solvent. Don't you?

Wasn't crypto intended to be transparent? Wasn't that one of the main advantages/selling points? Now it's all "trust me, kekekeke, all is well in my vaults".

>>52570495
>One thing that I say a lot around here is that crypto is engaged in re-learning the lessons of traditional finance. The last few weeks have been very educational! There have been some good lessons about the value of things like lenders of last resort and public disclosure and regulation. But I want to say here that one lesson crypto is relearning is about the value of having a good accounting system for keeping track of where the money is. Naively you might have expected crypto to already know that! [3] Naively you might have expected crypto to be better at that than traditional banking; naively you might have expected that to be a particular strength of crypto. But, nope.

>>52570495
>>52570636
>One thing that I will say is that, while crypto in theory is supposed to avoid the need to trust centralized intermediaries, in practice there is a huge market for trusted central intermediaries in crypto. It is just sort of a diverse market; there are many flavors of trust, with different people looking trustworthy in different ways to different audiences. Alex Mashinsky, who ran Celsius, appealed to people who do not trust traditional finance: “Either the bank is lying or Celsius is lying,” he told them about his promised above-market interest rates, possibly with a straight face. Sam Bankman-Fried, who ran FTX, appealed to people who like traditional finance (he came from Jane Street and pushed for more regulation) but also want to shake it up a bit (he wears shorts and played video games during pitch meetings).

Grayscale and Coinbase, meanwhile, appeal to people who trust SEC filings, people who trust regulation and audits and the legal system and the traditional social systems of trust. There are people in the world, and I guess I am one of them, who think things like “ah, right, an audited balance sheet filed with the SEC under penalty of fraud charges, that's probably pretty reliable.” That is sort of the main way that trust works in the traditional financial system. In crypto there are alternatives, and there are trends in trust. Sometimes everyone trusts everything. Other times, nobody trusts anything.

He is just smart. He knows he has enough on chain assets to cover PUBLIC liabilities. And everyone that doesnt gets rekt because it's in his best interest. So now the game is who can prove they have enough assets faster and who can hide their private liabilities better. For now it's only happening to crypto but I feel this is the tipping point. Eventually CZ will call out actual banks on this. That's when it's gonna get interesting. Binance is consolidating the market.

>>52570489
>>Its thanks to binance that BTC and ETH reached 70k and 5k.

>>52570696
He can "call out" traditional banks all he wants; post 2008 they are so firmly regulated and capitalized that it totally pisses them off.

In the mean-time, the collapse of his rivals undermines faith in Crypto broadly, and Crypto needed institutional acceptance and trust to make it to the next stage. Banks already have that trust, and more importantly Central Bank and government backup.

If Coinbase turns out to be another "oopsie, where is monies", who bails that out?

>>52569798
based CZ about to claim another head
Taking down competitor exchanges left and right

>>52570783
You know this is the opposite of smart, right? In 2008 the banks weren't talking shit about one another, because destroying confidence in rivals is contagious, soon everyone is questioning YOUR operation, and you risk a run on your operation.

It is in Coinbase's best interest to be the biggest dog in a field that investors have confidence in, not to try and be the last standing among the ashes, particularly in a commodity that has faith and speculation as it's very life's blood.

>>52570783
Or as Matt put it a couple weeks ago: "If you are a financial institution and you have to make public statements that you ARE credit-worthy, you aren't credit-worthy."

>>52569924
>Of all the illegal things an offshore crypto exchange could do, accepting deposits from US customers is the most obvious one to worry about.
The US government legally controls how its slaves spend their money even when they're out of US jurisdiction. lol this place is a prison.

>>52570893
>their money
it belongs to the federal reserve

>>52570893
Move to Dubai like CZ and you can send your investment monies to the Nigerian Prince or Sketchy Chink of your choice Anon.

You are free to pack up anytime.

>>52569836
Yellow and brown flush it down

>>52570752
It's a generational thing . People shouldn't trust banks because the underlying framework that sustains them isn't real . Period. But since they keep things obscure on purpose most people don't care UNTIL a big bank goes bust and then they start asking wtf happened?
Now we are reaching the point where crypto exchanges can actually prove that they actually own what they say they own 24/7. Soon millennials will become adults and will start bitching so their banks also have proof of reserves because the technology is already here. It's not a matter of IF it's only a matter of when.

>>52570828
CZ understands this and wouldn't FUD Coinbase if he didn't know he would come out on top from this carnage.
Google pyrrhic victory.

>>52569798
He is trying to get coinbase business.
It's great for him if it collapses as it just makes his money printer bigger. It's incredible how SBF managed to lose money when exchanges are basically money printers

>>52570922
>People shouldn't trust banks because the underlying framework that sustains them isn't real . Period.
This is rich coming from a Crypto guy. The banks have to file shitloads of disclosures to the SEC, and are burdened with a library of regulations.
>But since they keep things obscure on purpose
The banks got into deep shit because they were repackaging risky debt into obscure "safe investment vehicles", in ways that the SEC, Funds and even some of the Bank presidents didn't fully grasp. They got excessively cute and got burnt on it.

Operations like FTX are just mixing sheer incompetent record-keeping, illegal shenanigans, and opaque financials to destroy billions of dollars in investor money.

>>52570828
This is how regular bankers think because they know they are all the same shit. Your customers cannot make you suffer a run if you ACTUALLY own what you say you own. Period. That's what banks are afraid of. If the emperor has no clothes and you are also butt naked it's on your best interest to avoid raising suspicion to save your own naked ass. But my guess is binance is fully kitted in Gucci and everyone else is wearing rags at best and butt naked at worst. Why wouldn't you want them to go bust if you are certain you will be the last man standing?

>>52570930
>>52570954
He's just trying to survive at this point. Small-time retail investors can't keep Coinbase alive; if he's going to have future growth, financial institutions, governments and free markets are going to need to have faith in Crypto. Right now that faith is badly, badly shaken, as it becomes apparent that a large % of crypto institutions are just shenanigans by amateurs convinced they are geniuses.

>>52570064
There will be no dogs or sea creatures left

You're all retarded histrionic faggots

>>52570036
>hes not doing shady shit
You niggers really believe this? This CCP backed faggot came from nowhere, we know less about CZ and binances assets than anyone's. Fuck u sir.

>>52571000
>Your customers cannot make you suffer a run if you ACTUALLY own what you say you own. Period.
Banks make long-term investments for growth; they can have less invested in them because of new capital requirements, but they themselves don't have 100% of deposits on hand because of a run.
HOWEVER, a bank can show a big central bank it's long term investments, and the central bank will prop them up based on their solvency.

That doesn't exist for these Crypto characters.

>>52571077
Whereas FTX didn't even have good records of it's venture investments, OR who it owed money to.
And like >>52571054 says, no one knows what this Chink is really up to. And if he folds up and fails, no one will come to bail him out; the SEC will take zero interest in making anyone whole. They will just use it as Exhibit C for regulating the industry out of existence.

>>52569798
the manipulatoooor

>>52569897
The wsj is saying all the shit is gone. Like stolen gone, it’s not even a case of bad bets and covering them. The underlying assets are not there. Remember the anon saying that about greyscale yesterday, that it’s all gone, guess he maybe right.

>>52570981
>This is rich coming from a Crypto guy.
Do you get paid to tongue jew billionaire bankers' assholes or do you do it for free?

>>52571242
That can happen when your first business is using client money to prop up your second business, which is catching falling knives.

It's just like taking extreme short positions; if it goes to zero, you are done for.

Now apparently Zhao wants to get into the business that ruined FTX "but with better diligence". Yeah I'd be scared if he had my money out there in Dubai-land.

>>52571293
>He says, taking a break from tonguing the butthole of a Chinese off-shore grifter
It's funny that you douches got into crypto because you felt Teh Jew was shaving the edges off your gold coins, so now you gladly invest with dubious nobodies who abruptly steal ABSOLUTELY EVERYTHING

>>52570908
>You are free to pack up anytime.
>Renouncing US citizenship is free

>>52570981
I'm not a "crypto" guy. I have crypto, bank accounts, real state., Us bonds ,some stocks and invest my time in my family ,my friends and myself.
You are missing the point, in this case that banks need to do a lot of paperwork and fulfill a shitload of regulations to operate.
Assuming the best case scenario that a bank is legit and does everything all right,as a user you need to have faith in that they will be compliant with regulations, that the regulations themselves are sensible and in your best interests AND that the regulator body ( the SEC in this case) is working as intended. Assuming all those things, even a legit bank that goes under may screw you over because when they file for bankruptcy because the law in most countries will prioritize big investors and institutions before regular users.
And then you have the alternative of having your money in a smart contract that every hour checks if the reserve ratio is 1:1 and withdraws your crypto to a cold wallet you own when the ratio is not comfortable for you. It's the end of fractional reserve banking as we know it. And I say as we know it because I'm certain that we will still have fractional reserve custodial services, but the big difference is that we will choose what will the ratio be. I think CZ is trying to be the first doing that, if he succeeds, binance will become one of the biggest banks in the world. And a game changer for the rest of the banks. Of course they will resist him.

>>52570126
FYI
https://www.reuters.com/article/us-saudi-cenbank-currency/saudi-arabias-central-bank-signs-blockchain-deal-with-ripple-idUSKCN1FZ0LD
https://nypost.com/2021/11/02/saudis-uae-roll-out-red-carpet-for-crypto-as-us-gives-a-cold-shoulder/
https://ripple.com/insights/ripple-continues-to-build-momentum-in-mena-with-first-on-demand-liquidity-deployment-in-middle-east/

>>52571350
tl;dr
Tell me, how many US banks turned out to be insolvent frauds in the last 5 years?

And how many Crypto operations?

>>52570247
i wonder if they're going to use Tether as the spark to start the Evergrande crisis and crash the global economy

such a scenario might play out like this
>Tether unable to process customer redemptions
>attempts to cash in backing in Chinese commercial paper (Evergrande and even less reputable financial instruments/bonds)
>Chinese real estate market goes into tailspin
>western financial powers exposed to China (eg Deutsche, HSBC) start to collapse
>contagion spreads
>black swan flock spreads its wings and starts to honk

>>52570063
Idk I think this more exclusive to the exchanges. BTC maybe fine to a degree still. I think the exchanges forgot people like to steal. And zero proper protocols against this. I think these places got their shit stolen. Sort of like if you work at a gas station and ask your cousin to come rob you at 7 when the most money is there . WSJ just put an article about ftx up.

>>52571414
>Chinese real estate market goes into tailspin
>goes
You speak as if this hasn't already happened. It would have completely imploded by now except you can go to prison in China for shorting or withdrawing your investments.

>>52571343
>59 posts by this desperate kike
lol go invest your capital with Morgan Stanley. Why are you even here?

>>52571432
>Idk I think this more exclusive to the exchanges. BTC maybe fine to a degree still.
The exchanges were the thing that was supposed to transform BTC from "Bored Apes 1.0" to a viable financial system that attracted the rest of the world.

>>52571448
>"Look mommy, I am being a Hitler on 4chan again!"
Last response, turbo-moron.

>>52571350
desu it would be a net positive for the human race if this transition to a multipolar geopolitical system running on digital currencies ends up finishing off the fractional reserve system

>>52571484
>Last response
>post number 60 out of 88 in the whole thread
praise Jesus

>>52571303
I understand that but they are saying the doj are investing cybercrimes. Getting margin called or whatever is not a cybercrime. They are saying ftx is victim to getting cyberattacked I mean wtf does that mean ?

>>52571499
Almost all money is 1's and 0's now. This isn't a new development.
And it isn't going to transition into an energy-hungry system managed by outrageous grifters.

It has no reason to. Crypto has failed at the very virtues that were supposed to make it a superior alternative. And badly.

>>52571442
to me, this just suggests that China is biding its time for an opportune moment to crash the world economy, rather than saying that the real estate bubble went away entirely

their M.O for Covid was to crash their economy intentionally to hurt their enemies, and also recover quickest because they were prepared. i've seen people suggesting that the covid lockdowns of the last year were actually the chinese government transitioning to a wartime economy. to me, it looks like Russia and China have been preparing for a more open (but limited) conflict.

>>52571543
energy hungry system? actually there's a huge push towards carbon-neutral digital currencies and also the development of eco-credit systems like carbon credits
look up which cryptos are carbon-neutral and have connections to banks

>>52571386
I'm not talking about the US only. It's for the banking system as a systemic failure itself.
In 5 years idk how many went bust. Probably 0. But in 2008 some did and it was a disaster , way bigger than ftx stealing users funds or every shady shit that happened on crypto since it's inception. And the important part is that the underlying mechanism that allowed the 2008 crash to happen was left untouched. BTC was created in 2009 for a reason . Once proof of reserve goes viral banks things are going to change.

>>52571522
The SEC and DOJ simply hate Crypto, they have always seen it as a Ponzi scam, they just never clamped down on it because it transparently advertises itself as a Ponzi Scam, and they don't stop you from gambling all your money on the Houston Texans either.

Their interest only rose as regular financial institutions started poking around into this shit, (along with the money laundering of course, but they haven't shut down art auctions either).
They'll just wait for enough people to get burnt that they can Shut It All Down to resounding applause.

>>52571591
>And the important part is that the underlying mechanism that allowed the 2008 crash to happen was left untouched.
This is blatantly false; regulations for bank capitalization were put in place fast and have held fast.
>But in 2008 some did and it was a disaster , way bigger than ftx stealing users funds or every shady shit that happened on crypto since it's inception.
First, because of Central Bank and Fed support, there were really few casualties from this much larger event; I suspect a lot more Crypto operations will fall apart from this "comparatively minor" calamity.
Secondly, Crypto has been a non-stop shady shit/money stealing controversy since practically it's inception, and we both know it.

imagine when binance finally blows
and all the faggets who have their cryptos on there gets rekt.
popcorn ready because it was never fair for anyone in US. and they always have access to the earliest things -_-. get rekt.

>>52571685
>and all the faggets who have their cryptos on there gets rekt.
It will demolish the faith and value of cryptos as a whole, much as the smaller implosion of FTX has sent them down.

>>52571459
Well that it didn’t work out too hot. There is a reason banks do things a certain way. Just because something is a good idea doesn’t mean the execution of it will be easy. Crypto is more like cash to a degree. It’s like me putting 50 billion dollars of gold bars in a room, putting one guy as the security guard while I have orgies on addy with my polycule gf. I think hindsight is 20/20. And crypto is not meant to be on a exchange. The whole point is decentralized. I’m not a super computer person but how does one exactly store all this crypto. It’s all one big giant wallet ? With one way to access it? How many people knew how to get in, was that method hacked? Was it leaked ?

>>52571543
>Crypto has failed
No, centralization has failed. Would JP Morgan come forward saying that DEXes aren't to blame and release their own wallet if they thought crypto failed?

>>52571798
>And crypto is not meant to be on a exchange.
That would be swell if there was ONE crypto currency I guess?
But as crypto exists now it has to have exchanges, otherwise you are just burying gold in your yard, inconvenient as hell for a grocery store run.

>>52571809
Everyone rushing forward to (more or less) prove they aren't a Total Fraud is not exactly a good look for a financial asset.

>>52571671
Again, you are missing the point.
You are saying it's a good thing that people need to put their trust in paper promises that need to be enforced by institutions and that more paper promises make those users funds safer.
What i say is that with smart contracts the only thing you need to have faith on it's that the code is clean, that the network doesn't suffer a 51% attack and that you aren't using a single oracle to do whatever transaction you are doing.
Again, I'm not saying bank bad, just that they can be improved by technology and if some banks don't adopt it because reasons they will lose customers left and right when they see proof of reserve banks standing strong and the rest failing. It just takes time

>>52571671
>fast
>regulations
Yeah if you consider two years after everyone lost their homes as fast I guess.

>>52569945
/thread

He purposefully spreading FUD now. And he deleted the tweet op posted btw.

>>52571850
No, JP Morgan simply doesn't want their bags fudded by a bunch of slimy kikes at the SEC and their MSM lackeys.

>>52571862
"Everyone" didn't lose their homes in 2008; everyone on FTX absolutely lost everything they had there.
>>52571861
"the code is clean" doesn't mean anything, it's just buzzwords to build Faith (in something?).

>>52570752

Also, Banks have 0 reserve requirements and can loan each other assets made out of thin air.

>>52571861
>I'm not saying bank bad, just that they can be improved by technology
This is always the case with anything

>and if some banks don't adopt it because reasons they will lose customers left and right when they see proof of reserve banks standing strong and the rest failing. It just takes time
Yes, when Clean Fusion is invented, it will be a rough time for every other energy operation, however....

>>52571943
Banks absolutely have capitalization requirements, higher than they have ever been.
>assets made out of thin air.
It amazes me people can type this shit unironically on a Crypto board.

>>52571037
>>52570247
>it's the chey'nese g'wuys!
Standard (((deflection)))

>>52570324
he wants a bigger clientele, completely normal
if he is indeed insolvent, i think there's some saying about glass houses and rocks and niggers or something

>>52571907
I'm arguing in good faith, don't be disingenuous.
By clean code i mean simple stuff
Smart contract side A
1 BTC user address 1

Smart contract side B
1 BTC bank address

Trigger
Total BTC in bank Address is less than total BTC in user locked contracts.

If trigger then transfer B to A.

This allows the bank to trade or loan their users btc as they see fit without the user worrying if they are solvent or not. They don't need the SEC, the government, or anybody. How is that worse that we already have?

Ching Chong hahaha herrroooo sirrr

>>52572017
No, the standard is (((Teh Joos)))
The Chinese run an opaque economy that operates on "rules" subject to the whim of an autocrat-for-life. If he says "no one can sell stonks this year, only buy" it is so.

Fuck China.

>>52572028
1. Bitcoin itself is a wildly speculative investment that swings in value like mad
2. it's one of a ton of crypto currencies
3. this is basically how your debit card already works?
4. Fiat has a ton of oversight and regulation to prevent manipulation of said currency, see 1.

>>52570592
is him that's a fag or the one who wrote the article?

>>52569972
wtf based

>>52571979

It's not my fault you're too stupid to understand the banking system. Go do your homework and go to bed kid, you still have 1 day left of school.

>>52572069
>No, the standard is (((Teh Joos)))
It is, you're right

>>52572151
Man, I love being rebutted by someone stupid who thinks they are teh smartest.
Why did you waste your time typing that nothing?

>>52572111
Ok. I get it now. You are trolling. Sorry for being dumb . It was fun.
Then again why not? Why shouldn't i shitpost?
1. 1 BTC=1 BTC as a user the only thing the bank is obligated to is to have your asset. Whatever price it has at the moment is irrelevant. If you deposited 1 BTC @ 60k and withdraw now and receive 1 BTC worth 15k the bank did it's job perfectly.
2. Irrelevant. I'm using the bank as a custodian not as a judge of what i should invest in or not.
3.No..not in the slightest. The numbers in your bank account aren't (and can't be) audited whenever you see fit. If the bank somehowbgoes bust you depend on a central authority to salvage the remaining funds and THEN they will see if they can make you whole or not. it's not automated and depends on the good faith of the authorities in question .
4. At least on the US , the only deal breaker is that the Fed is the only one with the money printer. Banks aren't required to have collateral since 2020 by executive order so they are effectively printing money without actually increasing the official money count. It's even worse. And then there's the fact that q lot of governments outright lie or don't disclose publicly how much they print.
Again i know you are trolling but still

I really don’t understand the basis behind the basis of the exchanges. When you transfer it’s written to the blockchain. The point of blockchain is transparency. That the said transaction is on multiple different places and can be verified hence no funny business. You have your private key which allows you to transfer. So the exchange would have a database of private keys. Now how would it be possible to secure such a thing. If you had a breach all those keys would be worthless as they would transfer and create new private keys. Hell or just copy and delete the old database. I maybe completely off Just wondering. Not a crypto person.

Banks have a very easy to trace trail, and you have to use a bank account no matter what to use funds. If you are super fast maybe you could covert a little bit to cash but that’s about it.

>>52569798
He's under investigation for violating economic sanctions against Iran and possible terrorist financing. He's probably trying to pump as much filthy lucre as possible into Binance before he has to cash out and disappear.

>>52572339
>If you deposited 1 BTC @ 60k and withdraw now and receive 1 BTC worth 15k the bank did it's job perfectly.

>He thinks this is a plausible, working alternative to digital fiat

And for the record, your posts were always kinda shitposty. Or you've delusionally bought into "the future is crypto".