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Pure speculation - but I am going to go ahead and speculate that they lost most of the money when everything collapsed a few months ago in the defi blow up. Th

Pure speculation - but I am going to go ahead and speculate that they lost most of the money when everything collapsed a few months ago in the defi blow up. They doubled down and bought up distressed assets for cents on the dollar, hoping to make it back. A few months on, these bets are worth $0 and there is a $5bn hold in the balance sheet. If binance havent been f'ing around on the side gambling on the price, and just collect their brokerage on their exchange they will have plenty of cash to make FTX customers whole, restore some faith in the system and dominate the market place.

fdgsdfogijq 4y ago
Yup, I think this is what happened. And they claimed "it was for the good of the crypto ecosystem", which in part is true. But the reality if SBF aquired because he had to.
- xur17 4y ago
  Taking that a step further, is Binance doing the same thing?
  - shapefrog 4y ago
    Without wanting to overdo the "speedrunning 100 years of trad finance" crypto has just replayed 2008. FTX is playin the role of Bear Sterns and Binance playing JP Morgan. Defi are subbing in for Mortgage bonds, CDOs and synthetic CDOs squared. Margott Robbie can play herself again the the explanation https://www.youtube.com/watch?v=wlHrSZ7BVFI https://www.youtube.com/watch?v=wlHrSZ7BVFI As with 2008, it is entirely possible that an exchange does what it is meant to do and just happily generates piles of profit for zero risk - taking a percentage of every transaction a bit like ebay. Is that Banance? Or maybe Gemini of Winklevoss fame? No idea, CZ of binance tweets like he gets this, but who know. SBF tweeted saying they had everyones money but i guess the character limit means he couldnt say the whole statement which really was "we have everyones money ... except for 5-6billion of it"
    - xur17 4y ago
      > No idea, CZ of binance tweets like he gets this, but who know. Agreed. CZ has also posted that he intends to start publishing merkle-tree proof-of-reserves [0] for Binance. Definitely could be posturing, but if he follows through it would definitely raise the confidence in Binance. [0] https://twitter.com/cz_binance/status/1590055819416330240 https://twitter.com/cz_binance/status/1590055819416330240

fdgsdfogijq 4y ago

Yup, I think this is what happened. And they claimed "it was for the good of the crypto ecosystem", which in part is true. But the reality if SBF aquired because he had to.

xur17 4y ago
Taking that a step further, is Binance doing the same thing?
- shapefrog 4y ago
  Without wanting to overdo the "speedrunning 100 years of trad finance" crypto has just replayed 2008. FTX is playin the role of Bear Sterns and Binance playing JP Morgan. Defi are subbing in for Mortgage bonds, CDOs and synthetic CDOs squared. Margott Robbie can play herself again the the explanation https://www.youtube.com/watch?v=wlHrSZ7BVFI https://www.youtube.com/watch?v=wlHrSZ7BVFI As with 2008, it is entirely possible that an exchange does what it is meant to do and just happily generates piles of profit for zero risk - taking a percentage of every transaction a bit like ebay. Is that Banance? Or maybe Gemini of Winklevoss fame? No idea, CZ of binance tweets like he gets this, but who know. SBF tweeted saying they had everyones money but i guess the character limit means he couldnt say the whole statement which really was "we have everyones money ... except for 5-6billion of it"
  - xur17 4y ago
    > No idea, CZ of binance tweets like he gets this, but who know. Agreed. CZ has also posted that he intends to start publishing merkle-tree proof-of-reserves [0] for Binance. Definitely could be posturing, but if he follows through it would definitely raise the confidence in Binance. [0] https://twitter.com/cz_binance/status/1590055819416330240 https://twitter.com/cz_binance/status/1590055819416330240