4 ms·

Did Binance CEO in his attempt to screw FTX, just killed all crypto?

conorcleary 4y ago
No, only the orgs being run by the fellow corrupt and their innocent bystanders.
TacticalCoder 4y ago
That's not how I see it. SBF was going after Binance (and other competitors), through regulatory capture. It's not known if the officials implicated knew that SBF was running a ponzi but it's accepted that the oncoming crypto regulations was basically drafted by and for SBF to capture the market (with the chief lobbyist of FTX being an ex-CFTC commissioner regularly meeting with the SEC and the CFTC). This is now everywhere in the news. CZ from Binance saw this. CZ of course knew SBF was running a ponzi from day (complete with the creation of countless unregulated "securities" SBF would pump then dump on its FTX customers). It takes a thief to see one. So CZ, not wanting to go down alone, decided to expose SBF for the total fraud he was. Maybe hoping that the legislation drafted by FTX and coming to regulate Binance out of existence then wouldn't pass? The angle in the mainstream media is a different story of course: "Evil chinese Binance CEO make SBF's FTX fail by creating a bank run on FTX", without mentioning the pump and dump tokens. Without questioning where the tens of billions went. They're playing the "leverage gone wrong" and not mentioning the political briberies nor the illegal pump of dump of tokens. As someone wrote in another thread: the coverup exposes the crime (regulatory capture of the entire crypto market by a ponzi scheme). SBF thought he was a genius and thought he could really pull his gigantic scam and get away with it, but it failed. Now that it failed, I fully expect SBF to do everything he can to take CZ down. If only tether/USDT could go down too.
- jnwatson 4y ago
  The current evidence is this wasn't a Ponzi by SBF. It was incompetence at the absolute grandest level.
- halamadrid 4y ago
  This is probably pure speculation. But I've heard from the VC circle that SBF is raising up to USD 10B by threatening to bring down the crypto industry if he fails. Basically he knows its a house of cards and it can come down if he publishes the information he has. This is also why, he keeps saying, he will talk about this but "later". It will be an interesting time to watch this evolve. USDT (Tether) going down is probably the best news ever. Everyone knows they don't have the deposits to back the circulating tether but yet they survive.
- VLM 4y ago
  There's a twitter thread by Adam Cochran if you want to read more or less the above, in much longer more detailed format. But, yeah, in general my opinion based on what I've seen is the business model of FTX was to profit off the destruction of DeFi competitors via purchasing government regulations designed to do so, so one of the guys about to be shut down, took him out first knowing that he was financially extremely vulnerable. He was already doing everything he could to take CZ down and now he just has less resources to do so, nothing is going to change there. Another opinion is the meta point of the entire event is middling regulation doesn't work. Locked down central control is boring and unprofitable (well, for everyone not on the "inside") or "wild west nobody trust nobody" works, but FTX was marketing how heavily regulated and thus incredibly trustworthy they were, just don't look too closely at the balance sheet which was pretty much entirely fictional toward the end.
cuteboy19 4y ago
God forbid someone say that the emperor wears no clothes

No, only the orgs being run by the fellow corrupt and their innocent bystanders.

That's not how I see it. SBF was going after Binance (and other competitors), through regulatory capture. It's not known if the officials implicated knew that SBF was running a ponzi but it's accepted that the oncoming crypto regulations was basically drafted by and for SBF to capture the market (with the chief lobbyist of FTX being an ex-CFTC commissioner regularly meeting with the SEC and the CFTC). This is now everywhere in the news. CZ from Binance saw this. CZ of course knew SBF was running a ponzi from day (complete with the creation of countless unregulated "securities" SBF would pump then dump on its FTX customers). It takes a thief to see one. So CZ, not wanting to go down alone, decided to expose SBF for the total fraud he was. Maybe hoping that the legislation drafted by FTX and coming to regulate Binance out of existence then wouldn't pass? The angle in the mainstream media is a different story of course: "Evil chinese Binance CEO make SBF's FTX fail by creating a bank run on FTX", without mentioning the pump and dump tokens. Without questioning where the tens of billions went. They're playing the "leverage gone wrong" and not mentioning the political briberies nor the illegal pump of dump of tokens. As someone wrote in another thread: the coverup exposes the crime (regulatory capture of the entire crypto market by a ponzi scheme). SBF thought he was a genius and thought he could really pull his gigantic scam and get away with it, but it failed. Now that it failed, I fully expect SBF to do everything he can to take CZ down. If only tether/USDT could go down too.

jnwatson 4y ago
The current evidence is this wasn't a Ponzi by SBF. It was incompetence at the absolute grandest level.
halamadrid 4y ago
This is probably pure speculation. But I've heard from the VC circle that SBF is raising up to USD 10B by threatening to bring down the crypto industry if he fails. Basically he knows its a house of cards and it can come down if he publishes the information he has. This is also why, he keeps saying, he will talk about this but "later". It will be an interesting time to watch this evolve. USDT (Tether) going down is probably the best news ever. Everyone knows they don't have the deposits to back the circulating tether but yet they survive.
VLM 4y ago
There's a twitter thread by Adam Cochran if you want to read more or less the above, in much longer more detailed format. But, yeah, in general my opinion based on what I've seen is the business model of FTX was to profit off the destruction of DeFi competitors via purchasing government regulations designed to do so, so one of the guys about to be shut down, took him out first knowing that he was financially extremely vulnerable. He was already doing everything he could to take CZ down and now he just has less resources to do so, nothing is going to change there. Another opinion is the meta point of the entire event is middling regulation doesn't work. Locked down central control is boring and unprofitable (well, for everyone not on the "inside") or "wild west nobody trust nobody" works, but FTX was marketing how heavily regulated and thus incredibly trustworthy they were, just don't look too closely at the balance sheet which was pretty much entirely fictional toward the end.

cuteboy19 4y ago

God forbid someone say that the emperor wears no clothes