4 ms·

How can DD find a hole within a day of announcing? It seems too fast. To me, I assume it's CZ getting FTX to explode and then be the firm everyone comes to with

by eddsh1994 4y ago

How can DD find a hole within a day of announcing? It seems too fast. To me, I assume it's CZ getting FTX to explode and then be the firm everyone comes to without having to acquire them. Edit: Fair enough, thanks for the input repliers! I thought DD was a much slower event to prepare this information and get legal stuff set up with NDAs etc..

quickthrowman 4y ago
> How can DD find a hole within a day of announcing? It seems too fast. CZ: “Can I see your balance sheet? Oh, it says here you have $10B in assets and $16B in liabilities. Welp, good luck finding a buyer, I withdraw my LOI to purchase FTX”
sottol 4y ago
We'll see, but I think you can ask for some topline numbers and evaluate if it's even worth digging deeper. I'm sure this is not about accounting for a million, or two, or even a hundred.
jerf 4y ago
"So, step one, let's see your top-level balance sheet, you know, assets and liabilities." "Sure, we have a notional $1 billion in a combination of junk bonds that have already crashed to a market value of $25 million and other cryptocurrencies worth another nominally $15 million as long as we never try to actually sell them, and we have $1.4 billion in concrete dollar liabilities." Numbers completely made up, just to be clear. You can investigate that until you're blue in your face and apply all the nuance in the world to it, that's never going to make any sense. Also, I'd say Binance is well aware of the message the speed is sending. I don't think that's a mistake. This sort of signalling in "the metadata" of a message happens all the time. You can decide whether or not you believe it.
ceejayoz 4y ago
"How much do you have, and how much do you owe? Oh, really? Oooof. See ya."
moralestapia 4y ago
A billion dollar assets/liabilities mismatch? I'd bet that's quite easy to find. Honestly, with all the market info. that Binance has on their hands, I'm sure they already knew where to look at, LOL. They were just having fun with SBF.
- onlyrealcuzzo 4y ago
  Yes, I'm sure they're having fun seeing 30% of their Crypto assets disappear as confidence in the entire sector fades.
  - moralestapia 4y ago
    Maybe that was Option A, while Option B was "spend a couple billion dollars fixing the mess these kids made while still seeing 30% of our Crypto assets disappear ...". They chose A. They're also now the only big player standing in the game, they're having fun already.
    - deleted 4y ago
      [deleted]
shapefrog 4y ago
These guys are not actually rocket scientists, what they are doing is not complicated. It would take minutes to hours to figure out the state of things at FTX.

quickthrowman 4y ago

> How can DD find a hole within a day of announcing? It seems too fast. CZ: “Can I see your balance sheet? Oh, it says here you have $10B in assets and $16B in liabilities. Welp, good luck finding a buyer, I withdraw my LOI to purchase FTX”

sottol 4y ago

We'll see, but I think you can ask for some topline numbers and evaluate if it's even worth digging deeper. I'm sure this is not about accounting for a million, or two, or even a hundred.

jerf 4y ago

"So, step one, let's see your top-level balance sheet, you know, assets and liabilities." "Sure, we have a notional $1 billion in a combination of junk bonds that have already crashed to a market value of $25 million and other cryptocurrencies worth another nominally $15 million as long as we never try to actually sell them, and we have $1.4 billion in concrete dollar liabilities." Numbers completely made up, just to be clear. You can investigate that until you're blue in your face and apply all the nuance in the world to it, that's never going to make any sense. Also, I'd say Binance is well aware of the message the speed is sending. I don't think that's a mistake. This sort of signalling in "the metadata" of a message happens all the time. You can decide whether or not you believe it.

ceejayoz 4y ago

"How much do you have, and how much do you owe? Oh, really? Oooof. See ya."

moralestapia 4y ago

A billion dollar assets/liabilities mismatch? I'd bet that's quite easy to find. Honestly, with all the market info. that Binance has on their hands, I'm sure they already knew where to look at, LOL. They were just having fun with SBF.

onlyrealcuzzo 4y ago
Yes, I'm sure they're having fun seeing 30% of their Crypto assets disappear as confidence in the entire sector fades.
- moralestapia 4y ago
  Maybe that was Option A, while Option B was "spend a couple billion dollars fixing the mess these kids made while still seeing 30% of our Crypto assets disappear ...". They chose A. They're also now the only big player standing in the game, they're having fun already.
  - deleted 4y ago
    [deleted]

shapefrog 4y ago

These guys are not actually rocket scientists, what they are doing is not complicated. It would take minutes to hours to figure out the state of things at FTX.