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I'm just a fly on the wall with all the crypto drama but i thought Binance bailing out FTX was mainly to protect Binance and not just good will. I guess Binance

I'm just a fly on the wall with all the crypto drama but i thought Binance bailing out FTX was mainly to protect Binance and not just good will. I guess Binance figures they can survive without them.

adastra22 4y ago
I thought it was just so they could get due diligence info on their chief competitor and then back out.
- cuteboy19 4y ago
  The exposed their main competitors lies about solvency without spending anything. I fully expect CZ to say that the hole was too big and that customers are now suffering due to FTXs recklessness
- make3 4y ago
  yeah didn't they precipitate the crash by posting that they were doing thing similar to Luna, and then once the thing is crashing they say they'll buy it, and now they might not even buy it, I'm sure there's a lot of shit going on lol
  - viscanti 4y ago
    More than that. Their first move was cutting trading fees, which made FTT worthless (it was useful before for traders to use to reduce their trading fees but with free trading on Binance that became worthless). After Binance made FTT worthless, they then started to sell theirs off (knowing that it's worthless because it's a race to low/free fees). A bank run would have been inevitable anyway as large traders would rationally sell their FTT and move over to Binance for free trading (they pay zero fees and can pocket the money they can get from their FTT). CZ's tweet just accelerated things.
    - shawabawa3 4y ago
      Cutting trading fees did not make FTT worthless It might have won over some volume but it's not like FTXs volume dropped to zero overnight because of it
soperj 4y ago
or they can't survive with them...
- ackbar03 4y ago
  I think cz basically has sbf trapped. I don't even think anyone else can come and save them even if they wanted to cause binance has so much ftt. The moment whoever leaked to coindesk that Alameda was propped up entirely by ftt they were screwed
noelsusman 4y ago
As far as I know, Binance is doing just fine (for now). The bailout was an attempt to take over a large competitor for pennies on the dollar.
- paulusthe 4y ago
  Binance is almost certainly facing the same situation as FTX, just without the bank run. They're leveraged to the teeth with tether, which they similarly treat as a crypto leverage flywheel. Binance just has first mover advantage; as a result of inventing this "my coin can just be printed forever" crypto exchange model, they have more use and $$ which gives them a better cushion. But it's still only a cushion.
- partiallypro 4y ago
  As far as everyone knew FTX was doing fine until a few days ago. Binance is inevitably going to follow a similar path. If you're using a currency/holding as leverage that can go to $0 overnight, you're far from in a good position.
LegitShady 4y ago
how does assuming billions in your insolvent competitor's liability protect you? what's the upside?

I'm just a fly on the wall with all the crypto drama but i thought Binance bailing out FTX was mainly to protect Binance and not just good will. I guess Binance figures they can survive without them.

adastra22 4y ago

I thought it was just so they could get due diligence info on their chief competitor and then back out.

cuteboy19 4y ago
The exposed their main competitors lies about solvency without spending anything. I fully expect CZ to say that the hole was too big and that customers are now suffering due to FTXs recklessness
make3 4y ago
yeah didn't they precipitate the crash by posting that they were doing thing similar to Luna, and then once the thing is crashing they say they'll buy it, and now they might not even buy it, I'm sure there's a lot of shit going on lol
- viscanti 4y ago
  More than that. Their first move was cutting trading fees, which made FTT worthless (it was useful before for traders to use to reduce their trading fees but with free trading on Binance that became worthless). After Binance made FTT worthless, they then started to sell theirs off (knowing that it's worthless because it's a race to low/free fees). A bank run would have been inevitable anyway as large traders would rationally sell their FTT and move over to Binance for free trading (they pay zero fees and can pocket the money they can get from their FTT). CZ's tweet just accelerated things.
  - shawabawa3 4y ago
    Cutting trading fees did not make FTT worthless It might have won over some volume but it's not like FTXs volume dropped to zero overnight because of it

soperj 4y ago

or they can't survive with them...

ackbar03 4y ago
I think cz basically has sbf trapped. I don't even think anyone else can come and save them even if they wanted to cause binance has so much ftt. The moment whoever leaked to coindesk that Alameda was propped up entirely by ftt they were screwed

noelsusman 4y ago

As far as I know, Binance is doing just fine (for now). The bailout was an attempt to take over a large competitor for pennies on the dollar.

paulusthe 4y ago
Binance is almost certainly facing the same situation as FTX, just without the bank run. They're leveraged to the teeth with tether, which they similarly treat as a crypto leverage flywheel. Binance just has first mover advantage; as a result of inventing this "my coin can just be printed forever" crypto exchange model, they have more use and $$ which gives them a better cushion. But it's still only a cushion.
partiallypro 4y ago
As far as everyone knew FTX was doing fine until a few days ago. Binance is inevitably going to follow a similar path. If you're using a currency/holding as leverage that can go to $0 overnight, you're far from in a good position.

LegitShady 4y ago

how does assuming billions in your insolvent competitor's liability protect you? what's the upside?