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Neither of these numbers are correct, they imply 100M of profit a day. Volume is heavily weighted towards the highest tiers which on ftx were paying 0.015% to
by vgatherps 4y ago
Neither of these numbers are correct, they imply 100M of profit a day.
Volume is heavily weighted towards the highest tiers which on ftx were paying 0.015% to take and receiving 0.01% to make (given, alameda would receive no rebate).
They've also never claimed to do 100B+ a day. They published stats about their volume as well as some other exchanges here: https://ftx.com/volume-monitor https://ftx.com/volume-monitor.
It's stale since the collapse but they're claiming 16bn, and usually were claiming 5-10bn a day in the last month. Give some fudge factor for various traders at various tiers and this backs out to 1m a day order of magnitude.
Not covering a multi billion dollar hole with that anytime soon.
- onlyrealcuzzo 4y agoOkay - so even 0.01% on $10Bn = $1M per day = $365M per year, and - at the time - growing. One would think they should've been able to get a loan (if those numbers were real).
- HDThoreaun 4y ago365 million against 10 billion isn't so great
- vgatherps 4y agoThose numbers were likely real. Any serious MM firm can quickly get an idea if the books/volumes on an exchange are legitimate and leaves if not (high theft risk on fake venues). Aside from 365mm on 10bn being a bad trade, the volume will 100% drop off drastically after the loss of trust. That 365mm would be fortunate to stay above 36mm in my opinion
- onlyrealcuzzo 4y ago> Aside from 365mm on 10bn being a bad trade, the volume will 100% drop off drastically after the loss of trust. That 365mm would be fortunate to stay above 36mm in my opinion You wouldn't have had a loss of trust because the loan would've allowed FTX NOT to transfer customer deposits to Alameda, and instead use borrowed money (on their future earnings).