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It is incredible that each time I read new article on FTX I think "well, that tops everything I've seen so far in supposedly legit financial companies" and each
by smsm42 4y ago
It is incredible that each time I read new article on FTX I think "well, that tops everything I've seen so far in supposedly legit financial companies" and each next day I learn something that totally leaves the previous one in the dust. Turns out they didn't just used customers' money for risky investment as I thought, they actually pretended that illiquid token they themselves invented is a good asset to cover liabilities for customers' money! And they actually sent balance sheet with this to the investors trying to entice them to invest in this. No wonder Binance run away at the first look of it.
- grey-area 4y agoBinance does the same, as do Bitfinex and Tether and pretty much the entire cryptocurrency ecosystem.
- sbierwagen 4y agoCoindesk says they don't. There's a pretty solid 90% chance that every exchange with a stablecoin is going to blow up, but I'd only guess a 30% chance of Coindesk going under.
- grey-area 4y agoYes I agree from what I’ve seen they are the most stable, though it’s hard to know what is going on under the hood and the ceo is an unsavoury character who I wouldn’t trust with my money.
- captn3m0 4y agoCoinbase has a Altman Z-score of 0.16. This implies bankruptcy possibility in the next two years.
- smsm42 4y agoThat's a broad claim that would look much better supported by some proof.
- grey-area 4y agoLook up the balance sheets of Tether, Bitfinex and Binance. Their reserves are held in various dodgy instruments and they don't want you to know what those are ('commercial paper', point in time attestations instead of audits etc), instead they come up with fanciful schemes like this to distract from the essential facts of where the money resides: https://fortune.com/crypto/2022/11/14/binance-promised-transparency-proof-of-reserves-crypto-ftx/ https://fortune.com/crypto/2022/11/14/binance-promised-trans...