FTX is now solvent thanks to SOLANA | Bitcointalksearch.org

bbc.reporter

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Quote from: boumalo on January 01, 2024, 04:36:05 PM

Quote from: bbc.reporter on December 28, 2023, 11:30:34 PM

Quote from: Husires on December 27, 2023, 11:19:41 PM

Quote from: bbc.reporter on December 27, 2023, 10:23:43 PM

In any case, it would have been good for CZ and Justin Sun to have combined their efforts in saving FTX just for the SOL held in FTX's treasury. It will be something similar to when a bigger bank takes over a smaller bank with a good portfolio of real estate assets used as collateral from nonperforming loans hehehe.

CZ tried to displace FTX because of its rapid growth and that it had become a competitor to him. He may have obtained information in one way or another about the financial situation of the platform, and then he decided to take advantage of that and deliver the final punch that brought down FTX. However, despite that, what happened was good to alert investors to stay away from leaving their money on exhanges.

I do not think that cryptocurrency platforms are similar to banks, as banks want long, sustainable growth, unlike cryptocurrency platforms, which are looking for hot money and quick profits.

I disagree. Sam and FTX was going down even if CZ did not dump the FTT from their treasury or not. Also, CZ would be happy in FTX's growth because Binance was a shareholder in the exchange. The decisions made by CZ were business decisions, none of them were personal.

Also, if Sam ran the exchange very well, there is nothing CZ can do to bankrupt the exchange. What he would be doing is hold on to FTT and the shares on FTX to see his investment grow hehe.

Sam was over leveraged and used customers funds.

CZ did what he thought was best for him and Binance.

I very much agree, however, on thinking more about this I reckon CZ also had vengeful intention on FTX because before this, CZ and Sam were making spiteful tweets and criticizing against each other. I am not telling everyone that FTX would not be bankrupt under the way Sam was managing the exchange, however, it might have survived 2022 and 2023 bear market if CZ did not dump FTT.

According some articles, the FTX estate can pay the creditors whole on each of the dollar they deposited in FTX. This might imply that FTX only had a liquidity problem on 2022.

Darker45

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Quote from: boumalo on January 01, 2024, 04:36:05 PM

Sam was over leveraged and used customers funds.

CZ did what he thought was best for him and Binance.

Sam wasn't a businessman. He was an immature nerd who was born with a silver spoon in his mouth and who cannot handle serious responsibility. Of course, he doesn't look like your typical executive and may seem to have shunned material possessions and physical looks, but his fetish was grander. He was more attracted to mansions and luxury villas and power.

CZ, on the other hand, is a real entrepreneur, somebody who thinks of nothing but money day and night. Money is god. Binance will have to grow big and will always have to be in perfect health because it's the main source of money. CZ is more than willing to bend the rules at times, play by the rules at times, lick ass at times to make money.

boumalo

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Quote from: bbc.reporter on December 28, 2023, 11:30:34 PM

Quote from: Husires on December 27, 2023, 11:19:41 PM

Quote from: bbc.reporter on December 27, 2023, 10:23:43 PM

In any case, it would have been good for CZ and Justin Sun to have combined their efforts in saving FTX just for the SOL held in FTX's treasury. It will be something similar to when a bigger bank takes over a smaller bank with a good portfolio of real estate assets used as collateral from nonperforming loans hehehe.

CZ tried to displace FTX because of its rapid growth and that it had become a competitor to him. He may have obtained information in one way or another about the financial situation of the platform, and then he decided to take advantage of that and deliver the final punch that brought down FTX. However, despite that, what happened was good to alert investors to stay away from leaving their money on exhanges.

I do not think that cryptocurrency platforms are similar to banks, as banks want long, sustainable growth, unlike cryptocurrency platforms, which are looking for hot money and quick profits.

I disagree. Sam and FTX was going down even if CZ did not dump the FTT from their treasury or not. Also, CZ would be happy in FTX's growth because Binance was a shareholder in the exchange. The decisions made by CZ were business decisions, none of them were personal.

Also, if Sam ran the exchange very well, there is nothing CZ can do to bankrupt the exchange. What he would be doing is hold on to FTT and the shares on FTX to see his investment grow hehe.

Sam was over leveraged and used customers funds.

CZ did what he thought was best for him and Binance.

bbc.reporter

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Quote from: Husires on December 27, 2023, 11:19:41 PM

Quote from: bbc.reporter on December 27, 2023, 10:23:43 PM

In any case, it would have been good for CZ and Justin Sun to have combined their efforts in saving FTX just for the SOL held in FTX's treasury. It will be something similar to when a bigger bank takes over a smaller bank with a good portfolio of real estate assets used as collateral from nonperforming loans hehehe.

CZ tried to displace FTX because of its rapid growth and that it had become a competitor to him. He may have obtained information in one way or another about the financial situation of the platform, and then he decided to take advantage of that and deliver the final punch that brought down FTX. However, despite that, what happened was good to alert investors to stay away from leaving their money on exhanges.

I do not think that cryptocurrency platforms are similar to banks, as banks want long, sustainable growth, unlike cryptocurrency platforms, which are looking for hot money and quick profits.

I disagree. Sam and FTX was going down even if CZ did not dump the FTT from their treasury or not. Also, CZ would be happy in FTX's growth because Binance was a shareholder in the exchange. The decisions made by CZ were business decisions, none of them were personal.

Also, if Sam ran the exchange very well, there is nothing CZ can do to bankrupt the exchange. What he would be doing is hold on to FTT and the shares on FTX to see his investment grow hehe.

boumalo

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Quote from: bbc.reporter on December 27, 2023, 10:23:43 PM

Quote from: NotATether on December 26, 2023, 06:31:12 AM

Quote from: boumalo on December 25, 2023, 01:35:04 PM

They can probably sell all the locked fund at a 30% discount right away or just wait it out, collecting the coupons and getting the funds unlocked every month which is what they chose to do so far.

They should liquidate all of the SOLANA and use it to pay the customers they robbed when they went down.

They might do this. According to bankruptcy laws, a company should liquidate all assets and settle all payables which I assume is where customer deposits are designated.

In any case, it would have been good for CZ and Justin Sun to have combined their efforts in saving FTX just for the SOL held in FTX's treasury. It will be something similar to when a bigger bank takes over a smaller bank with a good portfolio of real estate assets used as collateral from nonperforming loans hehehe.

Would certainly have been better for Sam Bankman-Fried, he is 31 y old and the jury pronounced hom guilty on all seven counts on Nov 2 2023

A second trial, on five charges including bank fraud and bribery, is scheduled for early March 2024, it may not happen.

So now, the question of prison time goes to Judge Kaplan. The sentencing date is March 28 at 9:30 a.m. ET.

He can get 100 years but I'm betting on 25-30 years.

Husires

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Quote from: bbc.reporter on December 27, 2023, 10:23:43 PM

In any case, it would have been good for CZ and Justin Sun to have combined their efforts in saving FTX just for the SOL held in FTX's treasury. It will be something similar to when a bigger bank takes over a smaller bank with a good portfolio of real estate assets used as collateral from nonperforming loans hehehe.

CZ tried to displace FTX because of its rapid growth and that it had become a competitor to him. He may have obtained information in one way or another about the financial situation of the platform, and then he decided to take advantage of that and deliver the final punch that brought down FTX. However, despite that, what happened was good to alert investors to stay away from leaving their money on exhanges.

I do not think that cryptocurrency platforms are similar to banks, as banks want long, sustainable growth, unlike cryptocurrency platforms, which are looking for hot money and quick profits.

bbc.reporter

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Quote from: NotATether on December 26, 2023, 06:31:12 AM

Quote from: boumalo on December 25, 2023, 01:35:04 PM

They can probably sell all the locked fund at a 30% discount right away or just wait it out, collecting the coupons and getting the funds unlocked every month which is what they chose to do so far.

They should liquidate all of the SOLANA and use it to pay the customers they robbed when they went down.

They might do this. According to bankruptcy laws, a company should liquidate all assets and settle all payables which I assume is where customer deposits are designated.

In any case, it would have been good for CZ and Justin Sun to have combined their efforts in saving FTX just for the SOL held in FTX's treasury. It will be something similar to when a bigger bank takes over a smaller bank with a good portfolio of real estate assets used as collateral from nonperforming loans hehehe.

yhiaali3

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Some good news for FTX users to get some compensation after this long wait, although the case is progressing very slowly but this gives some hope to those affected to recover part of their lost money.

15.3 million SOL unlocked is good, but it is certainly not enough to compensate all those affected. It is also feared that releasing all these quantities at once will flood the market and drop the price of SOL, so it is better to have a timetable so as not to cause a new problem because most people may prefer to sell quickly. Before the price drops.

Husires

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These solutions would be realistic if FTX had not applied for Chapter 11 - Bankruptcy, which means transferring custody from individuals to the US government in an attempt to return even a portion of customer funds. This process is slow and requires on average 3 to 7 years, if not more, and even carrying out sales operations is It is in the interest of investors, and therefore prices will be far from the market price. These factors combined indicate that the first asset sale will be starting in 2025, and if clients are lucky, they may be able to recover a large portion of their assets in 4 years.

Darker45

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If the news were true, that 15.3 million unlocked SOL aren't anymore fully available for liquidation today.

Accordingly, 13.22 million of that unlocked SOL have probably been liquidated already as early as October and November. The total proceeds of that would be less than a billion, less than $700 million even. And with the 2.08 million SOL left at the current price, that would only be $228 million. All in all, that 15.3 million unlocked SOL would only give them less than a billion instead of almost $1.7 billion if sold at the current rate.

Source:
https://cryptopotato.com/amid-solanas-hot-streak-ftx-and-alamedas-73-locked-sol-stash-ignites-market-speculation/

BenCodie

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This whole saga has highlighted a problem that might soon have more light shed on the industry in the near future...there's no other way for me to describe it than indirect leveraging.

Traders go on exchanges and use margin to leverage less capital for a higher risk and reward. Companies/exchanges, like FTX, invest in different cryptocurrencies/the market to be able to increase profits (some rightfully so, some wrongfully so, like FTX), creating indirect leverage. When these risks don't pay off, it doesn't just effect the company, it effects the traders at the time, the market with artificial volatility, companies and where they've invested.

Traders are most wrong-done by from the effect on the market which otherwise may not have happened if indirect leveraging didn't exist. Hopefully, regulations can tighten the ability for large-scale companies to influence the market by indirectly and irresponsibly leveraging the entire crypto market.

NotATether

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Quote from: davis196 on December 26, 2023, 06:37:10 AM

Quote from: NotATether on December 26, 2023, 06:31:12 AM

They should liquidate all of the SOLANA and use it to pay the customers they robbed when they went down.

I agree. What's the point selling the SOLANA coins for fiat and giving the fiat to the FTX customers/investors? The SOLANA price will crash in no time.
Most of the FTX customers probably have altcoin wallets. Just give them all the unlocked SOLANA and you are good to go.
The problem is the lack of such option in the legislation(I guess).
The good news is that the FTX investors have a chance to return some of their investments.

I wish it was that simple, but regulation moves extremely slowly - at snail speed. Look how long it took to get SBF on trial for example. Any amendments to whatever legal arrangements FTX have or more specifically the bankruptcy proceedings will possibly take months if not years. Meanwhile what guarantees the price of Solana doesn't crash right back down in the meantime?

Traders don't wait for legal action.

davis196

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Quote from: NotATether on December 26, 2023, 06:31:12 AM

Quote from: boumalo on December 25, 2023, 01:35:04 PM

They can probably sell all the locked fund at a 30% discount right away or just wait it out, collecting the coupons and getting the funds unlocked every month which is what they chose to do so far.

They should liquidate all of the SOLANA and use it to pay the customers they robbed when they went down.

I agree. What's the point selling the SOLANA coins for fiat and giving the fiat to the FTX customers/investors? The SOLANA price will crash in no time.
Most of the FTX customers probably have altcoin wallets. Just give them all the unlocked SOLANA and you are good to go.
The problem is the lack of such option in the legislation(I guess).
The good news is that the FTX investors have a chance to return some of their investments.

NotATether

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Quote from: boumalo on December 25, 2023, 01:35:04 PM

They can probably sell all the locked fund at a 30% discount right away or just wait it out, collecting the coupons and getting the funds unlocked every month which is what they chose to do so far.

They should liquidate all of the SOLANA and use it to pay the customers they robbed when they went down.

EarnOnVictor

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I just watched Solana with surprise at how it has been performing over time, there is none of the top coins that is as excellent as the coin, but I do not think that its solvency will cause an automatic solution for FTX insolvency. Well, a situation like this has never happened where the abandoned company's asset would be the one to save them eventually, if it has happened before, not of such I know about. And you know all these procedures and policies, the company will begin to speak grammar as from this time and before you know it, another year would have gone without anyone affected getting their money back yet.

Well, I think we should continue to watch what they will do, and how FTX and the government will handle it. Mind you, months ago, the management sent SOLs to an exchange for liquidation, about 250,000 SOL in nearly 2 months ago if I am correct. I hope these people are not getting smarter than the investors while the government even turns a blind eye to this.

tranthidung

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Farewell o_e_l_e_o

FTX was insolvent mainly because they have most of treasury in $SOL and the token crashed in 2022.

Now you are saying they become solvent again because $SOL rallied a lot in the last month. Do you see it is a too naive thinking?

What will happen with FTX solvent status if $SOL rekted again?
A second insolvent saga for FTX and we will return to discuss about their insolvency.

They will only have safer treasury if they sell all their $SOL and convert it to stable coin or better to US dollar. If they do it, will $SOL be able to maintain its price like now?
It will not be able to do it because the selling pressure is very big if FTX do it.

hugeblack

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Since FTX and Alameda Research filed for bankruptcy, the legal procedures will take time and it will not simply be that they obtain profits that restore the $8 billion gap lost in their bank accounts.
Such procedures take years, and even compensation for Mt. Gox is still reacting to this, so I do not think it means a quick end to this story, but it may mean the possibility of obtaining compensation, even if it is more than 50%.

It is best to limit all discussions about FTX to this topic ----> [Updated] FTX

boumalo

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15.3 million SOL unlocked
40.5 million SOL locked until 2028 with a monthly released schedule

6,8 B$ at the current market rate.

They can sell the unlock funds + they get their coupon from the stacked locked SOL every few days.

@ 7,5%/y it would be 31 m$ / month in interest!

They can probably sell all the locked fund at a 30% discount right away or just wait it out, collecting the coupons and getting the funds unlocked every month which is what they chose to do so far.

Topic: FTX is now solvent thanks to SOLANA (Read 223 times)