3 ms·

Centralized financial exchange markets are at least somewhat regulated and notably FTX.US is supposedly A-OK. Just because some stuff in crypto doesn't have reg

by saurik 4y ago

Centralized financial exchange markets are at least somewhat regulated and notably FTX.US is supposedly A-OK. Just because some stuff in crypto doesn't have regulations doesn't mean it is a free-for-all.

zen21 4y ago
What does A-OK mean? No exposure at all?
- idkyall 4y ago
  As I understand it, FTX outside the US offered many exotic financial products: e.g. 24/7 traded Tesla stock tokens[1], leverage, etc., which I don't believe US based crypto exchanges are allowed to offer(Coinbase stopped offering leverage in 2020, for example). The acquisition offer yesterday did not include FTX.us[2] This may mean that the US part of the exchange and the associated customer funds were not lent out, but we shall find out. [1]https://coinmarketcap.com/currencies/tesla-tokenized-stock-ftx/ https://coinmarketcap.com/currencies/tesla-tokenized-stock-f... [2]https://www.cnbc.com/2022/11/08/binance-offers-to-buy-ftxs-non-us-operations-to-fix-liquidity-crunch.html https://www.cnbc.com/2022/11/08/binance-offers-to-buy-ftxs-n...
- zen21 4y ago
  I guess we now know that A-OK just means one day away from declaring bankruptcy.
LeafGuild 4y ago
>Just because some stuff in crypto doesn't have regulations doesn't mean it is a free-for-all. It pretty much does. The free-for-all disregarding of laws (including laws against fraud) is the stated purpose of crypto. They've been pitching this as Fight Club For Finance since the very beginning. The exchanges with a legitimate appearance are just fronts to get you to the back room with all the unregulated tokens offering insane interest rates. If you didn't come for a scam-or-be-scammed fight to the death, there isn't any reason to use crypto. The crypto bros just missed the part where Fight Club falls apart if you tell everyone about it. Or maybe they got too excited and forgot about that rule.
wombatpm 4y ago
In light of recent events this appears to be an inaccurate statement

by saurik 4y ago

zen21 4y ago

What does A-OK mean? No exposure at all?

idkyall 4y ago
As I understand it, FTX outside the US offered many exotic financial products: e.g. 24/7 traded Tesla stock tokens[1], leverage, etc., which I don't believe US based crypto exchanges are allowed to offer(Coinbase stopped offering leverage in 2020, for example). The acquisition offer yesterday did not include FTX.us[2] This may mean that the US part of the exchange and the associated customer funds were not lent out, but we shall find out. [1]https://coinmarketcap.com/currencies/tesla-tokenized-stock-ftx/ https://coinmarketcap.com/currencies/tesla-tokenized-stock-f... [2]https://www.cnbc.com/2022/11/08/binance-offers-to-buy-ftxs-non-us-operations-to-fix-liquidity-crunch.html https://www.cnbc.com/2022/11/08/binance-offers-to-buy-ftxs-n...
zen21 4y ago
I guess we now know that A-OK just means one day away from declaring bankruptcy.

LeafGuild 4y ago

>Just because some stuff in crypto doesn't have regulations doesn't mean it is a free-for-all. It pretty much does. The free-for-all disregarding of laws (including laws against fraud) is the stated purpose of crypto. They've been pitching this as Fight Club For Finance since the very beginning. The exchanges with a legitimate appearance are just fronts to get you to the back room with all the unregulated tokens offering insane interest rates. If you didn't come for a scam-or-be-scammed fight to the death, there isn't any reason to use crypto. The crypto bros just missed the part where Fight Club falls apart if you tell everyone about it. Or maybe they got too excited and forgot about that rule.

wombatpm 4y ago

In light of recent events this appears to be an inaccurate statement