FTX.com is pretty big. They do more volume than Coinbase. I'm pretty sure they can pay a huge windfall The biggest owner and of FTX and a multi-billionaire, Sam, just bought shares of Robinhood recently in the news FTX.com does not accept US residents, fyi
Exactly. Like when the Steve Carrell character bet against the banks in the Big Short, but it was the very same bank writing the CDOs so if they go down, those CDOs are worthless.
The problem with FTX and other brokers, that when the total collapse comes none of them are going to pay off. My personal theory is that these brokers get discounted tethers (let's say for 70 cents) thus both sides are happy. The issuer issues worthless coins for 70 cents, the brokers flood their customers for a quick gain and liquidity. They are part of the system and they will also get hurt. The multi billionaire moniker itself doesn't mean shit, those paper wealth can evaporate quickly in a meltdown, see my thread about the billionaires who just got poorer, including FTX's owner. And if some get away with a few hundred millions, do they want to watch their back for the rest of their lives when some ripped off customers keep coming after them?
Then why does the owner of FTX come on bubble vision (CNBC, Bloomberg, etc.) every week? Why market your company on a network where they don't even accept clients? Very strange.
Yeah those CDS' were worthless. I mean Goldman was never gonna payout but then those idiots at the Treasury forced AIGFP to pay off Goldman and they survived. I guess years of bribing the US Admin finally paid off for them. That scene was funny where Baum was talking to that lady asking how much exposure Morgan had and she said $15 Billion. He couldn't believe their stupidity.
So I assume FTX.com is different than FTX.us. Anyway the best would be if there was an options exchange for cryptos but its probably too dangerous for the market makers. There is probably private swaps or CDS' somewhere but its probably for institutional players.
Yes, the FTX.us has limited crypto markets and no perpetual futures FTX.com is used by the biggest wall street traders, from what I've read
exactly, same would have happened to Buffett had he not forced the rule change, where mark to marked did not apply anyone. Any one of us would be wiped out completely.
They said they hold 30% of their reserves in commercial paper (but plan to reduce that). Did you confuse this with them offering a 30% return to hold USDT? If not, can you please provide a source?