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If everybody walked into their bank right now to withdrawal, they couldn't cover either. Right?

by yucky 4y ago

pcai 4y ago
But their point was: FTX doesn't purport to be a bank
- kikokikokiko 4y ago
  It doesn't purport to be a HUGE PONZI either, but... Just another normal day in crypto land.
  - astrange 4y ago
    I mean, the CEO does literally tell people he's running a Ponzi. https://www.bloomberg.com/news/articles/2022-04-25/sam-bankman-fried-described-yield-farming-and-left-matt-levine-stunned https://www.bloomberg.com/news/articles/2022-04-25/sam-bankm...
- kasey_junk 4y ago
  https://www.fdic.gov/news/press-releases/2022/ftx-harrison-letter.pdf https://www.fdic.gov/news/press-releases/2022/ftx-harrison-l... Well…
rhaway84773 4y ago
And that’s why banks are heavily regulated and get protections. If FTX wanted protections against a bank run they could also choose to be regulated as a bank. Cryptocons want us to both treat crypto scams as banks and not banks depending on what suits them in the moment, just like they want us to treat cryptocurrencies as assets or currencies based on what suits their argument in the moment. All to hide the fact that it’s a mediocre technology which has been surpassed by many other technologies for most of its possible uses and is nothing more than a Ponzi scheme designed to enrich its original backers.
rchaud 4y ago
You may as well say "if everybody jumped off a bridge at the same time...." How many bank runs have there been in 2022 in the developed world? The reason people don't try to pull their money out all at once is because their deposits are insured, because their bank pays into an insurance pool.
- yucky 4y ago
  The reason people don't try to pull their money out all at once is because their deposits are insured, because their bank pays into an insurance pool. Only up to $250k.
  - smcl 4y ago
    https://fortune.com/2022/05/23/record-number-american-households-400-dollar-emergency-savings/ https://fortune.com/2022/05/23/record-number-american-househ... That wouldn't be a problem for the majority of Americans
    - astrange 4y ago
      If you go over $250k, you can just open accounts at other banks to keep being insured. Or get your own insurance I suppose.
      - smcl 4y ago
        My point was that if many would struggle to put together $400 in cash, they’re likely unaffected by a $250k upper limit on insured deposits
  - xmprt 4y ago
    How many people do you think have more than $250k in the bank? How many people do you think have more than $250k in FTX? It sounds like you're saying it's not good enough because 0.1% of people won't get the full benefit.
lmm 4y ago
They'd cover it. They might need to call up the fed, but they'd cover it.

If everybody walked into their bank right now to withdrawal, they couldn't cover either. Right?

by yucky 4y ago

If everybody walked into their bank right now to withdrawal, they couldn't cover either. Right?

pcai 4y ago

But their point was: FTX doesn't purport to be a bank

kikokikokiko 4y ago
It doesn't purport to be a HUGE PONZI either, but... Just another normal day in crypto land.
- astrange 4y ago
  I mean, the CEO does literally tell people he's running a Ponzi. https://www.bloomberg.com/news/articles/2022-04-25/sam-bankman-fried-described-yield-farming-and-left-matt-levine-stunned https://www.bloomberg.com/news/articles/2022-04-25/sam-bankm...
kasey_junk 4y ago
https://www.fdic.gov/news/press-releases/2022/ftx-harrison-letter.pdf https://www.fdic.gov/news/press-releases/2022/ftx-harrison-l... Well…

rhaway84773 4y ago

And that’s why banks are heavily regulated and get protections. If FTX wanted protections against a bank run they could also choose to be regulated as a bank. Cryptocons want us to both treat crypto scams as banks and not banks depending on what suits them in the moment, just like they want us to treat cryptocurrencies as assets or currencies based on what suits their argument in the moment. All to hide the fact that it’s a mediocre technology which has been surpassed by many other technologies for most of its possible uses and is nothing more than a Ponzi scheme designed to enrich its original backers.

rchaud 4y ago

You may as well say "if everybody jumped off a bridge at the same time...." How many bank runs have there been in 2022 in the developed world? The reason people don't try to pull their money out all at once is because their deposits are insured, because their bank pays into an insurance pool.

yucky 4y ago
The reason people don't try to pull their money out all at once is because their deposits are insured, because their bank pays into an insurance pool. Only up to $250k.
- smcl 4y ago
  https://fortune.com/2022/05/23/record-number-american-households-400-dollar-emergency-savings/ https://fortune.com/2022/05/23/record-number-american-househ... That wouldn't be a problem for the majority of Americans
  - astrange 4y ago
    If you go over $250k, you can just open accounts at other banks to keep being insured. Or get your own insurance I suppose.
    - smcl 4y ago
      My point was that if many would struggle to put together $400 in cash, they’re likely unaffected by a $250k upper limit on insured deposits
- xmprt 4y ago
  How many people do you think have more than $250k in the bank? How many people do you think have more than $250k in FTX? It sounds like you're saying it's not good enough because 0.1% of people won't get the full benefit.

lmm 4y ago

They'd cover it. They might need to call up the fed, but they'd cover it.