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ironically, I first heard about FTX and SBF in a hackernews thread about Coinbase layoffs. https://news.ycombinator.com/item?id=31738029 https://news.ycombinat

ironically, I first heard about FTX and SBF in a hackernews thread about Coinbase layoffs. https://news.ycombinator.com/item?id=31738029 https://news.ycombinator.com/item?id=31738029 Some gems: "Yeah. FTX people clearly know a lot more about market making and how exchanges work. Makes coinbase look like amateurs. ... I agree and am in general a big fan of FTX and the guys that work there. The CEO, Sam Bankman-Fried one of these HFT guys from Jane Street and his net worth shot up from 0 to $24 billion in just a few years. He kept things super lean and focused. But in the last few months it looks like he's hired a PR team and is all over the place: podcasts, obviously planted news stories, etc. He even hired a head of fashion and luxury partnerships and even has an ad out in Vogue ... This is the case for most market makers in whatever markets they're in. A crash usually produces a huge trading windfall, and then the subsequent "recession" leaves people with little money to invest/gamble with. FTX's traders are veterans of the industry, and they understand the need to be lean when order flow is light, and the need to make as much as possible when it's hot. Coinbase just watched the best two years of trading pass in front of their eyes, and failed to monetize it even to 10% of its potential. If they're lucky, they will get another opportunity to do things right in 5 years. But the trading graveyard is filled with people/companies like Coinbase who did really well for a year because they lucked into a good position, but who should have done 10x better. But then the real players see the opportunity, and run the Coinbases of the world off"

zeven7 4y ago
Thanks for linking that thread. Looking through the comments is a trip. As it turns out doing things the right way like Coinbase looks "boring" sometimes, while fraud might look more exciting.
Goronmon 4y ago
At least one person seemed to know what they were talking about. Unfortunately the comment was flagged, which is interesting. https://news.ycombinator.com/item?id=31738560 https://news.ycombinator.com/item?id=31738560 > Very different approach to Bryan Armstrong, who’s more of a Bitcoin “believer” The fact that you think this goes to show just how little you know about this ecosystem. And Bankman is the worst type of con-artist, he is going to use his billion(s) to influence US politics rather than build viable technological solutions. Armstrong has been the source of ire since the Segwit wars where he scammed and peddled Bcash on unsuspecting noobs using the 'legitimacy' of being the only YC backed and US sanctioned exchange. It's been a series of horrible UX after bad business strategy. Armstrong is what I expected when SV entered this space and played the typical VC game as seen with the buy-out of 21 Inc. I kind of respect him for hustling the SV crowds with such an absurd IPO valuation, but he is immensely foolish if he did not cash out then and there and anticipate buying back under this bear market to recapitalize and sell more of his worthless shares as they cratered in price. Again, HN is pathetically out of its depth when it comes to this Industry that it's hard to take most of you seriously on anything else.
- someguydave 4y ago
  Sadly, reading that guy's posts, he is also clearly a lunatic. I guess it takes one to know one.
  - kalimanzaro 4y ago
    I don't know man, his posts seem saner than the median here. “In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule.”

zeven7 4y ago

Thanks for linking that thread. Looking through the comments is a trip. As it turns out doing things the right way like Coinbase looks "boring" sometimes, while fraud might look more exciting.

Goronmon 4y ago

At least one person seemed to know what they were talking about. Unfortunately the comment was flagged, which is interesting. https://news.ycombinator.com/item?id=31738560 https://news.ycombinator.com/item?id=31738560 > Very different approach to Bryan Armstrong, who’s more of a Bitcoin “believer” The fact that you think this goes to show just how little you know about this ecosystem. And Bankman is the worst type of con-artist, he is going to use his billion(s) to influence US politics rather than build viable technological solutions. Armstrong has been the source of ire since the Segwit wars where he scammed and peddled Bcash on unsuspecting noobs using the 'legitimacy' of being the only YC backed and US sanctioned exchange. It's been a series of horrible UX after bad business strategy. Armstrong is what I expected when SV entered this space and played the typical VC game as seen with the buy-out of 21 Inc. I kind of respect him for hustling the SV crowds with such an absurd IPO valuation, but he is immensely foolish if he did not cash out then and there and anticipate buying back under this bear market to recapitalize and sell more of his worthless shares as they cratered in price. Again, HN is pathetically out of its depth when it comes to this Industry that it's hard to take most of you seriously on anything else.

someguydave 4y ago
Sadly, reading that guy's posts, he is also clearly a lunatic. I guess it takes one to know one.
- kalimanzaro 4y ago
  I don't know man, his posts seem saner than the median here. “In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule.”