4 ms·

FTX wasn't just like Coinbase, they were a better exchange than Coinbase with more products. They just ruined that by using the exchange's money to bail out Al

by Tenoke 4y ago

FTX wasn't just like Coinbase, they were a better exchange than Coinbase with more products. They just ruined that by using the exchange's money to bail out Alameda's unrelated investments. As far as I can tell if they hadn't done that Alameda would've died and FTX would've just kept being a good exchange.

jaywalk 4y ago
They had to bail out Alameda because Alameda was propping up FTX. I have seen nothing that indicates FTX would have been fine standing alone, and plenty to indicate the opposite. It was a giant scam. All of it.
- zeven7 4y ago
  Right, traders flocked to FTX because it was lucrative, and it was lucrative because Alameda was bleeding money as FTX's market maker.
- Tenoke 4y ago
  I mean, I don't see how it could've been losing money. Even if it had less users surely the fees they take more than make-up for the costs the exchange itself has.
  - jandrese 4y ago
    They were paying out guaranteed 15% returns "with no risk" to investors. Basically a textbook Ponzi scheme pitch and yet again it worked. https://www.theblock.co/post/186187/alameda-promised-high-returns-with-no-risk-in-2018-pitch https://www.theblock.co/post/186187/alameda-promised-high-re...
    - Tenoke 4y ago
      Again, that's the Alameda arm, I'm talking about the exchange.
      - jandrese 4y ago
        They were all connected at the hip. You can't talk about only one because it's all one big fraud spit across a bunch of domains to dazzle investors. There is some evidence that they "passed" the audits by moving all of the money around the companies while auditing them one at a time using a hidden money transfer function written by SBF.
texaslonghorn5 4y ago
not sure why this is flagged, some of this analysis is accurates the problem was FTX customer deposits ended up being borrowed by Alameda (using as collateral ftt that was fraudulently created and then loaned to them), if no one did the ftt fraud then who knows what might have happened.
- hn_throwaway_99 4y ago
  I downvoted because of this: "As far as I can tell if they hadn't done that Alameda would've died and FTX would've just kept being a good exchange." Read the report from the new FTX CEO, https://www.marketwatch.com/story/this-situation-is-unprecedented-10-crazy-things-detailed-in-ftxs-bankruptcy-filing-11668710122 https://www.marketwatch.com/story/this-situation-is-unpreced... It was a total fucking clown show from top to bottom.

by Tenoke 4y ago

jaywalk 4y ago

They had to bail out Alameda because Alameda was propping up FTX. I have seen nothing that indicates FTX would have been fine standing alone, and plenty to indicate the opposite. It was a giant scam. All of it.

zeven7 4y ago
Right, traders flocked to FTX because it was lucrative, and it was lucrative because Alameda was bleeding money as FTX's market maker.
Tenoke 4y ago
I mean, I don't see how it could've been losing money. Even if it had less users surely the fees they take more than make-up for the costs the exchange itself has.
- jandrese 4y ago
  They were paying out guaranteed 15% returns "with no risk" to investors. Basically a textbook Ponzi scheme pitch and yet again it worked. https://www.theblock.co/post/186187/alameda-promised-high-returns-with-no-risk-in-2018-pitch https://www.theblock.co/post/186187/alameda-promised-high-re...
  - Tenoke 4y ago
    Again, that's the Alameda arm, I'm talking about the exchange.
    - jandrese 4y ago
      They were all connected at the hip. You can't talk about only one because it's all one big fraud spit across a bunch of domains to dazzle investors. There is some evidence that they "passed" the audits by moving all of the money around the companies while auditing them one at a time using a hidden money transfer function written by SBF.

texaslonghorn5 4y ago

not sure why this is flagged, some of this analysis is accurates the problem was FTX customer deposits ended up being borrowed by Alameda (using as collateral ftt that was fraudulently created and then loaned to them), if no one did the ftt fraud then who knows what might have happened.

hn_throwaway_99 4y ago
I downvoted because of this: "As far as I can tell if they hadn't done that Alameda would've died and FTX would've just kept being a good exchange." Read the report from the new FTX CEO, https://www.marketwatch.com/story/this-situation-is-unprecedented-10-crazy-things-detailed-in-ftxs-bankruptcy-filing-11668710122 https://www.marketwatch.com/story/this-situation-is-unpreced... It was a total fucking clown show from top to bottom.