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crypto dot com CEO Kris Marszalek has posted earlier today that his exchange has regularly sent twenty million dollars or more to other exchanges to hedge expos
by anonymoushn 4y ago
crypto dot com CEO Kris Marszalek has posted earlier today that his exchange has regularly sent twenty million dollars or more to other exchanges to hedge exposure gained by trading against its customers. crypto dot com CEO Kris Marszalek does not seem to understand that he has confessed to several crimes and that customers who deposit dollars at an exchange expect that they have claims against a boring business that custodies funds and collects fees, not claims against an exciting business that regularly assumes twenty million dollars of directional risk by selling customers tokens they do not physically have and then buying them somewhere else later. Here is crypto dot com CEO Kris Marszalek's confession: https://twitter.com/kris/status/1591928306097868800 https://twitter.com/kris/status/1591928306097868800
crypto dot com CEO Kris Marszalek also does not seem to understand that this is a particularly bad time to tell his customers that he is an incompetent criminal who is constantly trading against them with funds he does not have and misappropriating their deposits because less than a week ago customers of a different exchange lost 10 billion dollars in a similar situation.
- artdigital 4y ago> to hedge exposure gained by trading against its customers This is not how hedging works and he also explains this in a subsequent tweet: https://twitter.com/kris/status/1591928970693726211 https://twitter.com/kris/status/1591928970693726211 It's not "trading against it's customers" and very common practice with basically all exchanges to make sure liquidity is always there
- anonymoushn 4y agoIf the exchange is not trading against its customers, and it is only custodying customer funds and collecting fees, how does it regularly acquire 20 million dollars of shitcoin exposure? Here's one way a crypto exchange could work: - many users deposit coins and fiat - some of those users are market makers - the users trade with each other - the exchange just custodies the coins and fiat and collects fees - the exchange does not need to send customer funds to another exchange because it is not assuming twenty million dollars of directional risk Can you explain your understanding of how it should work instead? Can you explain why people with these roles work at an exchange, an entity that does not engage in systematic trading or take on any nonzero amount of directional risk ever? https://www.linkedin.com/in/chen-x-74a83322/ https://www.linkedin.com/in/chen-x-74a83322/ https://www.linkedin.com/in/wanghan https://www.linkedin.com/in/wanghan https://www.linkedin.com/in/nicolasbourdrez/ https://www.linkedin.com/in/nicolasbourdrez/ https://www.linkedin.com/in/ronaldyiap/ https://www.linkedin.com/in/ronaldyiap/ https://www.linkedin.com/in/ernest-lim-88529b135/ https://www.linkedin.com/in/ernest-lim-88529b135/ https://www.linkedin.com/in/pravin-pathmanathan/ https://www.linkedin.com/in/pravin-pathmanathan/ https://www.linkedin.com/in/jin-marcus-wang/ https://www.linkedin.com/in/jin-marcus-wang/ https://www.linkedin.com/in/calen-zeng-b3324a196/ https://www.linkedin.com/in/calen-zeng-b3324a196/ https://www.linkedin.com/in/zzhuaj/ https://www.linkedin.com/in/zzhuaj/ https://www.linkedin.com/in/yining-liu-763a5041/ https://www.linkedin.com/in/yining-liu-763a5041/ https://www.linkedin.com/in/yu-tao-930721/ https://www.linkedin.com/in/yu-tao-930721/ https://www.linkedin.com/in/tom-chan-812b4090/ https://www.linkedin.com/in/tom-chan-812b4090/ https://www.linkedin.com/in/mark-amsellem-71a1a132/ https://www.linkedin.com/in/mark-amsellem-71a1a132/ https://www.linkedin.com/in/oliver-jieren-jia-636166b6/ https://www.linkedin.com/in/oliver-jieren-jia-636166b6/ Can you explain why they are hiring for these HFT/systematic trading roles? https://www.linkedin.com/jobs/view/3262469829/ https://www.linkedin.com/jobs/view/3262469829/ https://www.linkedin.com/jobs/view/3254166615/ https://www.linkedin.com/jobs/view/3254166615/ https://www.linkedin.com/jobs/view/3104863804/ https://www.linkedin.com/jobs/view/3104863804/ Thanks.
- onlyrealcuzzo 4y ago> Can you explain why they are hiring for these HFT/systematic trading roles? To front run customer orders and make a profit? Crypto is unregulated. Why not?
- valdiorn 4y ago> This is not how hedging works I read his tweet like eight times, going "wait I don't understand what he's saying, what am I missing?". Then I finally realised he was full of shit. No, that REALLY isn't how hedging works, indeed! :)
- lupire 4y agoKris Marszalek is in Singapore, which so far has proven lawless with respect to crypto (stealing a $billion is legal, while smoking a joint of marijuana means 10 years in prison) and uncooperative with other counties. The US has more reason to sanction the rogue dictatorship of Singapore than Cuba.
- aurareturn 4y agoAny crypto firm in Singapore is equivalent to the Bahamas, Caymand Islands, Virgin Islands, etc. for me.
- rippercushions 4y agoThe Monetary Authority of Singapore is slow, but like the rest of the Singaporean government, it does not fuck around.