Bybit exposure with Bankcrupt Crypto Lender Genesis

Z-tight

hero member

Activity: 994

Merit: 1089

Quote from: AbuBhakar on January 20, 2023, 09:29:04 AM

Will Bybit be another company that will bite the dust? We all know that this series of bankruptcy filings is due to the exposure of fallen companies like FTX and Luna.

That's the domino effect when a centralized exchange or service collapses, there is always another service that's exposed to them and would likely collapse, and on and on. I don't know if Bybit is next to bite the dust, they may be rescued by a bailout or do something so as not to collapse temporarily, and their customers may then think they are safe.

Rather than think an exchange is safe to hold to money, it is better for you to be safe by moving your money out of every exchange and hold it in self custody; trade on exchanges, but dont save or store funds on them.

Bitcoin_Arena

copper member

Activity: 2114

Merit: 1814

฿itcoin for all, All for ฿itcoin.

Quote from: Beparanf on January 20, 2023, 10:13:35 AM

It's not that alarming since the 150M exposed amount is collateralized and already liquidated to 120M. A 30M loss is not that huge for an exchange like Bybit although questioning the earn program source of reward is valid

Who told you a 30M loss is not huge? And how sure are you that it's just that amount because the CEO tweeted about it?

If you didn't learn a lesson about the lies SBF made shortly before the FTX collapse, then you usually have a lot more to learn Cheesy

Quote from: AbuBhakar on January 20, 2023, 09:29:04 AM

Will Bybit be another company that will bite the dust? We all know that this series of bankruptcy filings is due to the exposure of fallen companies like FTX and Luna.

It's possible. Let's wait and see how all the drama unfolds. The good thing is that all my funds are off that exchange.

Darker45

legendary

Activity: 2576

Merit: 1860

The dots are now connecting. The domino is branching. Who would now believe Ben Zhou when he's only making the revelation after being caught with no choice? A full disclosure coming only after reports are out that Bybit is exposed to Genesis? That's shady at the very least! Who cares about your disclosure when everything's already known?

If that list of companies exposed to Genesis weren't released, Zhou would have remained mum about it, keeping everything a secret. But now that he's got no choice, he's coming out with this overdue disclosure, if only to justify it, reassure his clients, and try control the damage. Too late!

I don't care if Bybit is next to bite the dust. I actually used to admire the platform for being generous to its non-verified users, but they're actually all of the same feathers.

Husires

legendary

Activity: 1596

Merit: 1288

Quote from: Beparanf on January 20, 2023, 10:13:35 AM

A 30M loss is not that huge for an exchange like Bybit although questioning the earn program source of reward is valid because this is the reason why most of these DeFi company bankrupt due to being unable to pay the money by their user since the company use the funds o failed investment. I'm not using Bybit but staying away from it for a while is not bad.

I'm not sure these numbers are accurate but according to this page (https://www.bybit.com/app/user/proof-of-reserve) they have:

Code:

BTC	2022-12-10 04:00 UTC	20710
ETH	2022-12-10 04:00 UTC	156064
USDT	2022-12-10 04:00 UTC	1043019667
USDC	2022-12-10 04:00 UTC	122272126

BTC ( price 21k) = 435M
ETH (price 1587)= 238M
USDT = 1043M
USDC= 122M

Total is less than 1.8B

Most of this money is in the form of USDT, so if something happens to that stablecoin they are fully exposed.
The amounts they own are much less than what FTX was claiming to have.
Therefore, 30 million is not considered a small amount for this platform.

AbuBhakar

hero member

Activity: 1120

Merit: 554

🇵🇭

Quote from: Beparanf on January 20, 2023, 10:13:35 AM

It's not that alarming since the 150M exposed amount is collateralized and already liquidated to 120M. A 30M loss is not that huge for an exchange like Bybit although questioning the earn program source of reward is valid because this is the reason why most of these DeFi company bankrupt due to being unable to pay the money by their user since the company use the funds o failed investment. I'm not using Bybit but staying away from it for a while is not bad.

There's no proof about the amount being recovered aside from the mere post of the CEO that doesn't have a reference. It's ovbious that he will claim that they are good since they have a lot of customers that participating on there earn program. An exposure is still an exposure and there's always a repercussion with this kind of failed investment that the Bybit CEO will not gonna share.

Beparanf

hero member

Activity: 2954

Merit: 796

It's not that alarming since the 150M exposed amount is collateralized and already liquidated to 120M. A 30M loss is not that huge for an exchange like Bybit although questioning the earn program source of reward is valid because this is the reason why most of these DeFi company bankrupt due to being unable to pay the money by their user since the company use the funds o failed investment. I'm not using Bybit but staying away from it for a while is not bad.

AbuBhakar

hero member

Activity: 1120

Merit: 554

🇵🇭

I'm sure everyone here knows about Genesis announcing Bankruptcy. Recently Bybit CEO disclosed on his Twitter account that they are indeed exposed to Genesis through there Mirana investment company. The intriguing part was they just disclosed this info right after many people on social media posted about this info.

Quote from: Ben Zhou

Full disclosure:
1. Mirana is the investment arm of bybit.
2. Mirana only manage some bybit company asset. Client fund is separated snd bybit earn product doesn’t use mirana.
3. The reported 151m has abt 120m of collateralized positions which mirana had already liquidated.

Bybit has an earn program which reward all the user staking on their platform. Due to insufficient details of the CEO, People is now concerned about where Bybit gets those rewards that are being paid for their reward program. They are assuming that the money came from the investment on Genesis lending platform and it will be a huge problem once the source of the reward will be cut-off.

Will Bybit be another company that will bite the dust? We all know that this series of bankruptcy filings is due to the exposure of fallen companies like FTX and Luna.

Topic: Bybit exposure with Bankcrupt Crypto Lender Genesis (Read 97 times)