Of grand visions and even grander delusions
What was he doing in Politics asking for regulations while he was risking customers money?! At this point it may have not been illegal, but it was definately unethical. An exchange should not have the ability to risk the customers investments in coin, and without their knowledge.
Keep in mind that the Fed doesn’t print money. Banks do by creating loans. They give cash to the lender for a collateralized loan. The borrower takes the money and pays it for, say, a house. The builder deposits that money and the cycle starts as above. It all starts with the bank.
This is the best explanation of the events that led to the dminse of FTX I have read (written in plane English). Three questions..
1. are there other platforms with similiar narcistic egos directly other peoples monies in crypto. the answer at this time seems almost certainly Yes.
2. what will be the fallout from FTX bankruptcy? Can it and will it lead to the demise of the digital assets ecosystem?.
3. does blackchain technology still have value and can it be saved. If so, why did these firms all fall 25% plus last week.
For now - the asset class seems like a bucket of smoke, that lacks any and all form of regulations.
Using the Kelly criterion in trading systems is extremely bad IMHO, because the returns aren’t known. And using a Kelly multiple >1 is just ridiculous.
“built by traders, for traders”
Wasn't that Enron's motto?
Mt. Gox, Bitconnect, QuadrigaCx, Luna, Three Arrows, Blockfi, FTX........... Until there would be a perfect decentralized and trustless Exchange, Regulation has to come in and fix things up. Otherwise these events will continue to happen. On SBF he is delusional and a thief IMHO. "Pretending to use customers funds to save the world!", yeah right.
I dont get it, the money transfered to Alameda should be still there shouldnt it? Or did Alameda gambled it all away?