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Binance was partly responsible (rightly or not) for triggering FTXs collapse. Edit: Triggered, not caused. He controlled the timing. Doing so without having
by LatteLazy 4y ago
Binance was partly responsible (rightly or not) for triggering FTXs collapse. Edit: Triggered, not caused. He controlled the timing.
Doing so without having their own house in order would be suicidal. I'm not saying they are safe. Just that CZ is either much happier he can deal with a "bank run" or crazy.
Does anyone know why it is so difficult for companies to provide audits? It seems like it SHOULD be very doable for them to get PWC or similar in, show them all the deposits and all the assets, do some spot checks on individual accounts, and get a meaningful bill of health?
- isitmadeofglass 4y agoThe only way for them not to trigger the FTX crash’s at the point they did, would have been to absorb 8 billion $ worth of missing funds and handing over control of a much larger set of funds to the people responsible for those losses. They weren’t partly responsible for FTXs crash for looking at that balance sheet and going wtf, we’re out. Even if they themselves are running the same scam. They might just be much less under water and trying to keep their head above it, until the goldfish forget about the FTX crash.
- LatteLazy 4y agoI am not sure I follow your logic. CZ and Coindesk triggered (not caused, but triggered) the collapse by announcing they thought there was an issue. CZ could have avoided that without giving FTX any money by just not doing it: quietly selling Binances FTT. I do't blame CZ for the problems at FTX. I am just saying, if you trigger a (justified) bank run in a competitor, you have to expect people to withdrawn from your own org too. So triggering it and NOT being solvent yourself is inviting disaster...
- hiq 4y ago> quietly selling Binances FTT I don't think this was possible. This would have crashed FTT anyway, so people would have looked at it and found out that Binance was behind this. If Binance hadn't communicated about this beforehand, it would have made them look even shadier.
- shapefrog 4y agoTerrible that they FORCED FTX to gamble with customer funds, lie about it and then get caught. HOW DARE THEY!!!!
- LatteLazy 4y agoThat's not what I said...
- ceejayoz 4y ago> Doing so without having their own house in order would be suicidal. Or just desperate. It happens.