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"FTX’s lending product was (theoretically) peer-to-peer" that's the point of theoretically? Their spot lending system didn't come out until well after they ha
by vgatherps 4y ago
"FTX’s lending product was (theoretically) peer-to-peer"
that's the point of theoretically?
Their spot lending system didn't come out until well after they had cemented their spot as a top exchange, and if you look at the rates anytime in the last year they were well under market rate - like ~1-2% rates for most major products.
It might have been part of the scam, but this looks much more like pretty bog standard "let's go trade our users funds away".
- kikokikokiko 4y agoTheir little friend BlockFi was offering 8% at the end of 2021 if I'm not mistaken. That was the moment I got out of the crypto space for good, the ponzi mask was all but gone at that point. The fact that FTX bought BlockFi just cemented their ponzi friendly, to say the least, business model.
- vgatherps 4y agoAh yeah, I was thinking about the ftx on-exchange spot margin system. You're definitely right that the retail lending aspects were generally somewhat scammy. I suspect those rates made more sense pre-2021 when it was very expensive and hard for crypto firms to borrow capital, but offering 8% fixed on dollars in any recent time was a loss leader at best. It's sadly looking more like sbf was buying up these firms to do exactly as you said and grab capital to fill the whole, and hide their own liabilities to said firms.