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>The silly thing is that FTX was a money printing machine. There was no reason to start gambling with user funds, aside from greed, hubris, and stupidity. Wher
by PaulWaldman 4y ago
>The silly thing is that FTX was a money printing machine. There was no reason to start gambling with user funds, aside from greed, hubris, and stupidity.
Where were their profits derived? Was it from taking their slice of every transaction? Or selling their freshly minted coins? If it was the latter, that only works for so long, just ask the Fed.
- saberdancer 4y agoWhat always surprises me why does anyone feel the need to steal from users when you are literally "the house" - you are taking a fee on every transaction. Just like in poker - if you are the house, you don't need to take risk by playing at the tables. FTX was probably hugely profitable before they started stealing.
- oldgradstudent 4y ago> Where were their profits derived? Is there any reason to believe there were any profits ever?
- mumbisChungo 4y agoOf course. They were one of the highest volume exchanges, taking a % of every transaction. Unfortunately, they got greedy and started lending money (to themselves in Alameda, where it was gambled away)
- xwolfi 4y agoThey started AS Alameda and THEN made an exchange to facilitate their trades. They did not exist for any other purpose than doing the good old Tether + Bitfinex = iFinex.
- mumbisChungo 4y agoTrading fees on billions of dollars of volume.
- nfw2 4y agoIn this case, where do the liabilities come from? Edit: nvm I guess this thread is about FTX's original business model