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But those coins were most likely purchased with real money?
by tommica 4y ago
But those coins were most likely purchased with real money?
- matthewdgreen 4y agoYes, but how much real money is the question. I'm not doubting that real money was lost, just wondering if $16B of actual customer dollars ever flowed into the exchange.
- scottyah 4y agoExactly, I always wondered what the real numbers looked like. It's so easy to mint 100 coins, get a friend to buy one at $100, and say you "have" $9,900. I wouldn't be surprised if the number of actual dollars was less than $100 million.
- tfehring 4y agoIt's easy to see how FTX's assets could be "worth" $16B in the absence of any real money coming into play, but I don't see how they could get to $16B in liabilities that way. The most obvious possibility would be if their liabilities were also denominated in thinly-traded shitcoins, but at this point it seems clear that that wasn't the case.
- bena 4y agoI think his point is that while it was bought with real money, it couldn't be sold for real money. If I buy 50 RandoCoins for $1 today, tomorrow it shows that it's now valued at $2, and then the next day RandoCoin is hacked and all the coins are stolen, I didn't really lose $100, I only lost $50. So he's wondering if the value of loss is being expressed as the money used the purchase the coins or the perceived value of the coins.
- tommica 4y agoFair enough, that makes sense.