Earns goodwill and users while the size of the bill is smaller.
Not sure how it would work from a legal standpoint but unfortunately 6 billion is too much (and I had a majority of my net worth in FTX as a trader)
They may be exterritorial to the US. So was Silk Road.
The reason partial deposit insurance works in commercial banks is that the ground rules are set from the start.
As a trader myself, this lesson is part of your risk management. I have multiple accounts with amounts that I wouldn't cry if they went to zero. I trade them together, and if AMP decides they hate me because I am too tall, it doesn't change my ability to trade until that issue is resolved.
Edit: flagged??? huh...
My guess is that binance just wants to take down a competitor. They publicly started the FTX bank run by announcing they were going to dump FTT, after all.
Binance has its own dollar based stablecoin, BUSD.
I truly underestimated human greed where making 7 figures of profit A DAY is not enough and you still gamble with user funds.
Luckily I’m still young enough and don’t have a family and I am confident I can rebuild but man, it definitely stings.
This is the mind boggling part to me and many others like you. How do you mess up this bad when you were on top of the world and a billionare before age 30? Was it really not enough?
Not sure which exchanges are sane anymore these days, you can rule out pretty much anything with it's own token as being too high risk, including Binance. Coinbase went too big too fast and we saw extreme greed with them going public. Kraken seem cautious overall, taking fewer risks and doing things the right way?
Hard to say for sure.
- Double Tops btc in november 2021.
- Interest rates at record lows worldwide.
- Early signs of inflation > Rumors of fed raising interest rates & rumors of quantitative tightening.
- End of covid checks and government bailouts.
I also suggest you reading Financial Times and especially its comment section which is often more insightfull than articles themself... WSJ optional, but its comments section is trash (politicaly and economically very biased). > google bypass firewall.
I also suggest you to disconnect completelly from "assets" built and backed by hashed numbers (once you read "History of Financial Speculation", it will become clear).
Good luck.
There is a reason why no one is acquiring ponzi schemes.
I am concerned about their near new monopoly. But alleging that Binance is involved in these money printing shenanigans is simply baseless.
Can I ask why you are concerned? That they start charging more fees? Isn't crypto decentralized where you don't need to use anyone and it doesn't matter where you live? I don't know a lot about how all this works but isn't the point of crypto that you are divorced from any sort of authority?
I’d be concerned if the “last man standing”[0] wasn’t the most responsible one.
You’d think we, collectively as a society, learned our lesson from the Wild Cat banking days but, nope, apparently not.
[0] I do find it funny you have to use quotes around a common saying because someone will say “how do you know they identify as male?”
Cryptocurrencies were meant to be used in a decentralized manner. These centralized pseudobanks are everything that's wrong with this space and I hope they do get regulated.
For a really quick summary, Thorchain provides Uniswap style liquidity pools such as BTC/RUNE that allow people to do one shot trades that can be routed across major blockchains, and liquidity providers collect fees on every trade. Typically liquidity providers are also exposed to RUNE due to the nature of how XYK liquidity works. These new vaults are special because they lack RUNE exposure, but they are also only allowed to make up something like 10% of the liquidity pool, so deposits are limited.
I've been incredibly vocal about how anything promising >10% yields is a scam. It's the reason I built ponzi.finance (which never got popular, but was fun while it lasted). Yields greater than 10% are always either temporary, or straight up fraud. I'd still tend to agree with Erik though that your claim that you can't earn yield on BTC was incorrect, though the counter-party risk at the time was not ideal. Counter-party risk is, of course completely unavoidable in legacy finance systems, and the overhead costs to properly mitigate it are (IMO) unsustainable in a world with easily accessible DeFi tooling.
Obviously Erik did not mean via centralized exchanges. You can lend your Bitcoin on countless decentralized protocols for those yields- even risklessly with flash loans via a dApp like Aave. With non-risk-free lending you can assess and knowingly accept your desired level of risk via fully auditable open ledgers.
If you withdraw more than your interest and in some other crypto than your collateral then your loan now has leverage. During that particular withdraw transaction you will have signed some logic which can automatically liquidate your lent crypto if the amount you withdrew (minus interest) becomes worth less than your collateral.
Until that pre-signed liquidation transaction executes you are fully in control of the balance and keys.
Normal exchanges don't go bust all the time, it's not rocket science.
Crypto entities haven't earned that privilege yet, and are quite commonly openly antagonistic to any regulation at all.
Unless Binance does this as a unilateral act of goodwill, it would be difficult for them to acquire FTX in a way that pays out to customers while stiffing lenders and shareholders.
if binance assumes $6b in liabilities for no gain they'll be acting against their shareholders best interest and be on the way to bankruptcy anyways.
No one here can say what the upside of assuming all those liabilities is. Aside from 'goodwill' and 'the entire crypto market will crash', what actual reason is there for binance to buy an insolvent exchange?
gift humans credits on new exchange.