Topic: Crypto news in plain English. Let's read it! (Read 182 times)

So now when FTX is bankrupt, why FTT is still trading in some exchanges?

How about this news?

Binance Releases Wallet Addresses of $69B Crypto Reserve

https://www.coindesk.com/business/2022/11/10/binance-releases-wallet-addresses-of-69b-crypto-reserve/


Basically two questions:

1. Cold wallet and reserves. Does it mean all those reserves belong to them? It is not user funds? It is their own funds? Is this what they saying?
2. What is Merkle Tree (proof-of-funds)? I guess it is important in this case.

CZ is serious to unload their FTT bag as they dont want to have ties anymore with FTX. We can see clearly the drama over the net and social against their comment on each other. But I think Sam drop some break on his latest tweet about collaboration addresing to CZ, but maybe he wouldnt do it since the damages on social network has circulated already.

As per the Tweet, CZ already claimed that it was because they're planning on selling them hence the move. As far as I know they're going to TWAP sell the FTT, despite the chart looking like they dumped all the FTT in one go.

yeah could be, then the question is why Binance was moving their FTT. I think now everyone know that something bigger going on there. FTT dropped to 15.06 USDT at some point. We will see.

Binance moving their FTT holdings was pretty public on Twitter already because of people watching on-chain movements; CZ's tweet pretty much just confirmed it because people we're already tagging him asking him about Binance's FTT holdings in the first place.

I don't think it'd leave ftx to fail but it looks like they charge fees using that token so it might cause them problems with that (but I doubt they'd collapse just from one holder selling).

If they did collapse, they'd hurt crypto and binance. I don't know why binance would want to hurt themselves over this unless they have large cash reserves they want to invest in bitcoin or something (that's really not unlikely) or they could buy coinbase if ftx fails and dominate a lot of the market and also fast track their own regulation (who else will be wanting to own an exchange that might be crushed somehow or has very fierce competition)?


As another thought, maybe they're testing the strength of ftx and their reserves. If they publish they're going to sell the tokens publicly, does it give ftx some time to say they'll reach a settlement to buy those tokens rather than them being dumped on an exchange and driving the price down?

I see no other reason for them to announce it publicly unless a regulator they want to appease has it in their terms that acquisitions over certain amounts should be disclosed (I think US regulators normally have this set at a max of 10% of market cap of the "stock" you're disposing of for companies, it might be more depending on size and regulator). .

According to some Tweets posted by Binance CEO Changpeng Zhao, this further explains the reason behind his action. All this happened because CZ was doing some house cleaning after a piece of news broke out that some billions of USD worth of FTX token which was said to own by Alameda Research the balance sheet wasn’t reflective of the true story in other to prevent any fool play CZ decide to exit the platform.

thanks, yeah seems to be really strange situation.
If FTX will fail, that would be big given their size. Failing FTX could drag others as well, including Binance. No?

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But then why would Binance announce it? I am sure they know that going public about their plans to liquidate FTT will bring the price of the token down. They've could first liquidate it, then announce it.

Binance looks like they're accusing FTX of lobbying behind them. I think this is probably something done based off closeness to regulators, because ftx and coinbase are regulated exchanges they might be closer to regulators and therefor might find it easy to lobby against new and other firms in the same space (which is often done anyway with many different sectors in history imo).

The question here is why did binance publish this? What are they trying to do with that? A lot of the channels I've seen seem to suggest they're trying to get a response from FTX too on it or trying to cause liquidity problems with the exchange. It might also have been an attempt to cause a crash and see if one exchange was better at dealing with it than the other.

For those who are new in the town and might not know all the details and story behind the news. And the jargon doesn't help. So, let's start this thread and help beginners to understand the news.
Here anyone can post a news, tweet or a question and ask others to explain it in plain English. Explain Like I'm Five basically.

Here is the first such a request from me:

Binance CEO Changpeng Zhao tweets:

Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.

https://twitter.com/cz_binance/status/1589374530413215744?s=20&t=K5YKbRlcssl0g8QoglZpLA


What is this all about? FTX was lobbying behind the Binance?