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Why would they even consider taking them over? They killed a competitor by declaring them as insolvent. The damage has been done. The user funds SBF siphoned ou

Why would they even consider taking them over? They killed a competitor by declaring them as insolvent. The damage has been done. The user funds SBF siphoned out of FTX aren't coming back and doubt CZ is going to refund them out of pocket IF they take them over. The tech behind FTX is probably the same or worse than what Binance has. Customer acquisition happens anyway as the people still wanting to stay active in crypto will probably go to Binance.

johnvanommen 4y ago
I was thinking the same thing. This reminds me of 2008, when companies were trying to get "rescued", such as Lehman, but Lehman couldn't make a compelling argument why they were worth acquiring, once the accounting books were opened.
- deleted 4y ago
  [deleted]
- new2this 4y ago
  "Fools Gold" does a great job of documenting this contagion effect (among other things) during the 2008 crash. Highly recommend
  - johnvanommen 4y ago
    Thanks! I'll check it out.
firekvz 4y ago
PR They are the biggest exchange now, they gotta look like they care and tried to help so they can attract all the ones who need a new home You still dont get crypto dinamics, is not about the tech, is about how much money you can extract from people trusting you
- ddorian43 4y ago
  Pretty expensive PR. Just run some superbowl ads and name some stadiums.
  - chucksmash 4y ago
    Note parent said "look like they care." It's only expensive if they go through with the purchase. So far it has cost them a couple of tweets.
  - firekvz 4y ago
    Is not expensive, it was actually really cheap, the tokens Binance has are from ICO stages, OTC deals, trades for other tokens, etc. Binance or CZ paid never paid face cash value for any those tokens, simple as that. And most important, he hasn't purchase FTX. So it was just tweets and have your PR team contact major crypto news sites
colinmhayes 4y ago
"Even the largest crypto exchanges are scams" is bad for the crypto space as a whole.
mamonster 4y ago
Prevent contagion in crypto most likely. If FTX is forced to go into liquidation, it's hard to estimate the systemic effect in crypto. When you are the biggest shop at the fair you wanna keep the festival going as well.
- rdtwo 4y ago
  Yeah but how do you liquidate it would take years
- seydor 4y ago
  If they buy them isn't that a bigger risk of contagion? Current Binance customers would be concerned
nprateem 4y ago
Nice way to look at a competitor's books.
ahtihn 4y ago
> They killed a competitor by declaring them as insolvent. Worded like that you make it sound like that's a lie. CZ didn't declare them insolvent. He just made the fact public.
- WeylandYutani 4y ago
  https://en.m.wikipedia.org/wiki/The_Emperor%27s_New_Clothes https://en.m.wikipedia.org/wiki/The_Emperor%27s_New_Clothes Binance was the little boy.
- 314 4y ago
  Until the box was opened the cat was neither alive nor dead.
miohtama 4y ago
As Matt Levine put it in his newsletter regarding 2008: ”The survival is not a zero sum games. For banks to survive it is beneficial to other banks to survive as well.”
unicornmama 4y ago
Speculation, but consider that plausible scenario that SBF went nuclear and then CZ retaliated in what will turn into crypto mutually assured destruction.

johnvanommen 4y ago

I was thinking the same thing. This reminds me of 2008, when companies were trying to get "rescued", such as Lehman, but Lehman couldn't make a compelling argument why they were worth acquiring, once the accounting books were opened.

deleted 4y ago
[deleted]
new2this 4y ago
"Fools Gold" does a great job of documenting this contagion effect (among other things) during the 2008 crash. Highly recommend
- johnvanommen 4y ago
  Thanks! I'll check it out.

firekvz 4y ago

PR They are the biggest exchange now, they gotta look like they care and tried to help so they can attract all the ones who need a new home You still dont get crypto dinamics, is not about the tech, is about how much money you can extract from people trusting you

ddorian43 4y ago
Pretty expensive PR. Just run some superbowl ads and name some stadiums.
- chucksmash 4y ago
  Note parent said "look like they care." It's only expensive if they go through with the purchase. So far it has cost them a couple of tweets.
- firekvz 4y ago
  Is not expensive, it was actually really cheap, the tokens Binance has are from ICO stages, OTC deals, trades for other tokens, etc. Binance or CZ paid never paid face cash value for any those tokens, simple as that. And most important, he hasn't purchase FTX. So it was just tweets and have your PR team contact major crypto news sites

colinmhayes 4y ago

"Even the largest crypto exchanges are scams" is bad for the crypto space as a whole.

mamonster 4y ago

Prevent contagion in crypto most likely. If FTX is forced to go into liquidation, it's hard to estimate the systemic effect in crypto. When you are the biggest shop at the fair you wanna keep the festival going as well.

rdtwo 4y ago
Yeah but how do you liquidate it would take years
seydor 4y ago
If they buy them isn't that a bigger risk of contagion? Current Binance customers would be concerned

nprateem 4y ago

Nice way to look at a competitor's books.

ahtihn 4y ago

> They killed a competitor by declaring them as insolvent. Worded like that you make it sound like that's a lie. CZ didn't declare them insolvent. He just made the fact public.

WeylandYutani 4y ago
https://en.m.wikipedia.org/wiki/The_Emperor%27s_New_Clothes https://en.m.wikipedia.org/wiki/The_Emperor%27s_New_Clothes Binance was the little boy.
314 4y ago
Until the box was opened the cat was neither alive nor dead.

miohtama 4y ago

As Matt Levine put it in his newsletter regarding 2008: ”The survival is not a zero sum games. For banks to survive it is beneficial to other banks to survive as well.”

unicornmama 4y ago

Speculation, but consider that plausible scenario that SBF went nuclear and then CZ retaliated in what will turn into crypto mutually assured destruction.