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From the moment they launched, their terms claimed that FTT will be used as collateral to borrow money from their FTX platform. FTX wasn't and isn't the only p
by tremarley 4y ago
From the moment they launched, their terms claimed that FTT will be used as collateral to borrow money from their FTX platform.
FTX wasn't and isn't the only protocol CEX that does this.
When Facebook sells our data to advertisers, their not stealing it. It's in their terms. It doesn't make it a fair or great thing though.
- votepaunchy 4y agoWould it be stealing if $1 of crypto was “borrowed” for $0.02 of FTT? Digital copying is not theft, but since crypto cannot be copied I am fine with calling FTX’s actions stealing.
- zeven7 4y agoI would be very interested to see a citation and also to know what other large exchanges do this.
- siftrics 4y agoSource? Why would SBF delete his tweet claiming funds are "never invested, not even in bonds"? Lending money and buying bonds are functionally the same thing, albeit there is legal nuance. What is a "protocol CEX"? I'm assuming that's a typo.
- frupert52 4y agoI believe CEX is Centralised EXchange as opposed to DEX the Decentralised equivalent. This is just my best guess based on what I’ve learned from following this scandal so could be wrong. TLDR: FTX is not the only centralised exchange behaving in the manner being discussed (according to parent) Edited for clarity
- siftrics 4y agoI know what a CEX is and what a DEX is. The phrase "protocol CEX" is an oxymoron. "protocol" implies a set smart contracts, i.e., some semblance of decentralization. A CEX could be fully off-chain.