Topic: What was the dumbest thing FTX spent money on… (Read 157 times)

You failed to:
- explain why the difference in price was 4 times higher in South Korea than in Japan despite SK having lower electricity costs
- offer a reason for the 25% kimchi premium in SK despite electricity rates being lower compared not just to Germany but Italy or France too
- notice that the premium was offered to non-minable tokens or PoS coins
- to address the issue resolving itself when laws were changed but not the price of electricity
- read all the paragraphs when every single author mentioned capital controls
- offer a reason for the disappearance of the Kimchi premium before any shake-up in the energy market


No, it's not, and as you can see he has failed to even provide an answer on what happens to those 500 million and started with the story of Hansel and Gretel.
In the frankyworld you can have the cake, eat it, sell it, and buy it again for half price and still be at a loss.

a dying company in debt cant have its investors buy out their own company else they is not in dying/in debt
so for those that are in debt they need to seek an outside buyer

its the process of mergers, acquisitions.. then liquidations of the dying brand with all the bad debt

creditors could club together but then what you find is them as sole owner of company with no other company as parents are stuck

however bringing over the a new buyer who buys out the share holders. thus they are out...

new buyer brings the assets into the parents company including the customers of that asset balance. the segretgates off the debt and makes the customer happy to be separated from the debt of the old brand
however yes the debt owners of old brand are not happy if that old brand then goes into bankruptsy as the assets are gone.

in short

lets take that $500m asset analogy and call it company(D)
lets say it does $1bill trade volume a week($52bill volume a year)
at a 0.1% trade fee $52m a year cashflow

company(D) owner decides its company(D) is at a 3x cashflow valuation so offers 100m shares on offer of full value $156m
round A investors pay in $156m (or % of that amount at that ratio)

the company(D) does other business and ends up gaining $1b in debt from some bad business.. lets say tax evasion or sanctions or something..  is the debt total reason where debtors are (A)uthorities

the share holders are not happy. they want out but not at a 0 return

so someone(x) else buys them out. pays in $156m to make shareholders happy and out..
and new buyer(x) now acquires the company(D).

it merges in the (D)customers and the (D)customers assets of $500m to become customers(X)
however the company(D) still has liabilities(A) it owes from other things that total $1b

well a moral company would pay out a further $1b.. or..
now that company(x) has the customers it does not need the dying brand(D). so can just bankrupt it

..
other shady but legal practices are:
imagine X also had its own debt of $500m from its own stuff (its own tax evasion of A2)

X does a paper loan to (d) of fake $500m
and X (acting as D) 'buys' X debt(a2)  (its just contract speak no real money changes hands)


so now D is $1.5b in debt becasue its got all the debt(A)(A2).
and now X can just bankrupt the lot in a nice neat package called DAA2

and the fun part. because(x) it loaned D $500m(on paper) it can claim that x is a creditor of Ddeny to X and the D total debt is $2b call it XAA2D debt

..
but this is all mentioned in a 5minute written forum post where the process to do this is more convoluted and more timely to meet all the legal loopholes of avoiding clawbacks.
but yes its legal IF DONE RIGHT

That deodorant stick got me but was it really a deodorant stick? Hmm.. Anyways, that is what his background story tells, that he is a pro arb trader but does he really? I mean why did he got bankrupt then? Maybe he got greedy and used all the clients' funds but some of his trades didn't go well, resulting for him to get rekt. IDK if it's true that he is planning to venture the fashion industry but that seems hilarious. You are right, it wasn't his field but his expertise is only at crypto or trading.

Maybe that was also the reason on why his primary company got bankrupt. Another thing where SBF spends his money is through donations from a government. I think this can be considered as a dumb move because governments are already rich, more if they are corrupt.

funny part is UK and euro had electric prices that are cheaper than japan

.
oh wait you mean germany..
well now thats a diferent story, if you want to say germany 'is europe' is more of a statement of gramma nazi-ism, and thats on you for not taking the intricate diverse countries independently and then looking at them in the scope of such and then averaging out their costs overall..

if you want to play game s of "europe is most expensive 'coz germany" ill leave you to play that game

as for you using an article again as proof. you again lack to read the small print or look for the source beynd the news article

oh by the way. SBF was never worth 10's of billions of dollars
it was all 'paper' valuations not real coin/assets he owned outright nor fiat he had outright of his own ownership in his pocket

but you continue beleiving in the articles

that said
recently ... for about one day, i beleived some article that SBF was trading bitcoin on mtgox in 20113-14 while interning for jane street.. but i realised my mistake

if you want to spend months beleiving SBF actually personally earned 10's of billions.. well thats on you

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now lets just rub it in further and translate the link you provided which YOU think is SBF profiting from korea's kimchi


if you are just trying to poke at electric rates as if your the rate king..
japan and germany both have the same rate high electric. where hawaii has even higher

but there is no good exchange in germany compared to japan
also other euro exchanges are not rated at germany rural price discovery, but euro average which is since 2013 been priced into the us rate..scale of sheep following the ups and downs at a forex adjusted amount

EG if you look at the us market of bitcoin and then the eu market for bitcoin they shadow trace each price movement up is up down is down. sheep follow

however japanese bitcoin market had a different community of bitcoins thus a different price discovery sentiment thus japan was nor tracing us.. which meant there was an opportunity.

You sure this is allowed?

So basically you are saying someone can buy a company for say $100million, and take the $500million in assets without paying off any of the debt and profit $400 million in return?

This doesn't make sense and no creditors would agree since this company would be better off just liquidating all their good assets and paying the debt back for 50% instead of 0%.

I am confused how this works exactly.

So, they buy it because still there are good assets that are found within the company. But, that also means that they're going to accept the burden and responsibility of that dying company for those customer that are hopeful within it.
Otherwise, they will really just let the company die after obtaining the good assets and leaving it together with those poor customers that have already accepted its fate. Well, it seems that there's still a lot for me to learn about acquisitions like this.

I would say that sex doll he bought from a seller on ebay or alibaba, the one with glasses!

Leaving that aside, even some of his investments in crypto-related stuff were just pure garbage, he probably was in a rush to spend as much of his client money s soon as possible, looking through pages and pages of investments in Defi and NFT, I'm amazed that he actually invested in 3 copies of NFT games that resemble a lot Axie infinity, and he poured money in each of them, what do you expect from clones of a game that is losing itself money right now? And why so much in the same genre, diversifying doesn't mean you buy shares in 10 clones, you at least try to do it in different types at least.


Oh Franky Franky, again talking about things you don't have a clue about.
Electricity in Europe was always more expensive than in Japan, so why wasn't the same price difference there? Why are prices higher in South Korea when electricity there is cheaper than in Japan?
Besides, most of his gains SBF had little to do with Japan, his real gains were on kimchi premium, which is for South Korean arbitrage, here is an article from 2021
https://blockcast.cc/news/in-depth-look-at-sbf-a-legendary-trader-worth-tens-of-billions-and-an-extreme-altruist/


 

another thing he wasted money on
kevin o'leary

o'leary will sing like a song bird too
SBF ex gf just plead guilty and is lessening her possible sentence by singing to authorities

so now someone has been found guilty of a criminal enterprise which kevin has been promoting. he too is on the chopping block and no $15m payment from SBF is worth staying loyal to SBF

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the whole US-JAPAN thing is simple

japans electric is high. and so their mining costs are like 10x compared to the cheapest on the planet. and so japanese traders are happy to pay a little extra for bitcoin on exchanges in japan compared to bitcoin in america/europe exchanges or mining from home in japan

and so japanese exchanges are always higher premium

it does not take talent. it just takes reserves and bank account access to a japanese exchange or a stable coin to arbitrage it

its not talent, its access

its coming to light now that early on FTX wanted people to deposit fiat into alameda(japan) bank account so he can buy coin on a japanese exchange. and send that coin to the FTX wallet(coeporate tagged but co-mingled). where a user is then credited on ftx with fiat balance. but then has to buy the coin off ftx at the USA rate. thus he profits while giving people a btc balance at the us rate of swap

Another issue that I am confused is whether, was he actually a good trader or not?

I would see photos of him, sitting on his gaming chair, with 6 monitors in front of him, with a deodorant stick on his desk. Behind him being a bean bag which was his bed. I assumed he was the best scalper/day trader out there.

Then I learnt that all he did was mostly arbitrage. Buying Bitcoin in USA and selling for 10 profit in Japan. Rinse and repeat. Then all he did was market making. When he was actually trading he seemed no different than all those Bybit apes who go 100x on many coins and get rekt, only difference was that his trades had no liquidation price.

LOL.  But I mean come on, it's not as if he had to work his ass off to pay for it (that I know; I'm just going on assumptions that his family wouldn't see that as an enormous expense).

Double and triple LOL!  I'd argue that what he said gave no indication as to his major, and I would not have guessed it to be in physics or even business.  And the way he said what he said to the media as FTX was collapsing suggested that his major surely wasn't English or any subjects where communicating with other humans was part of the curriculum.  Even with all of the finance gobbledygook factored in, the number of "uhhhhm's" and other crap he uttered gave me the impression that he was a clueless amateur.

But no, I later learned that he'd worked on Wall Street.  No idea how he got that job or how he performed, but obviously it did not prepare him to lead one of the biggest exchanges out there.  And I'd say the biggest waste of money on FTX's part was whatever they lost with their Alameda trading.  Runner up: All the advertising, which is proving to be laughably moronic in light of what went down.

FTX spent so much money on brand-ambassadors and endorsements. It is estimated that the firm spent over $375 million on these promotion spree. Tom Brady, Shaquille O’Neal, Steph Curry, Naomi Osaka, Larry David and other were paid heavily to promote the firm. Sporting organizations like Miami Heat, Major League Baseball, Golden State Warriors, Washington Wizards and many more in US and other countries signed very expensive promotional or partnership deals with FTX. I might not be able to indicate the positive effects of these huge expenses to the firm, but I am sure Binance is spending moderately (this is not an endorsement of any centralized exchange}    

two words
DRUGS

if you cant see the second word. dont worry he is wearing the other 'drugs' under his shirt


well he planned to have a "medical condition" that required getting high every 12 hours via a emsam patch. so he has no plans to go cold turkey. nor wants to get help for his brain delusions triggered by drugs

I did not know this person before the disaster that affected us all. I tried many times to look at his resume, which seemed to me rich in academic and practical experiences, which enabled him to assume that position in the company, which is never an easy job.
After the fall of the podium, the man appeared to me to be insane or arrogant with paranoia as he issued statements and articles expressing his positions before he was arrested, forgetting that he would face harsh prison sentences and that all his life was over. He didn't seem affected even after he himself lost $10 billion of the platform's assets after its price collapsed.
I think he should be presented to a psychologist to study his mental and psychological condition.

dont be shocked
when you start life using the bank of mom&dad, they can buy access and also they can buy ghost writers to write out assignments for SBF

meaning he doesnt need to learn. he just needs to pay the assignment writer with parents money

(we see CSW do the same thing. CSW is accumulating more degree's per year than humanly possible.. obviously he has other people doing his homework)

Shit, I'm just as surprised as your are.  When it comes to technical colleges, I'm not sure there's anything more prestigious than MIT, and this guy has clearly exposed his serious lack of intelligence.  It may even be you who recently posted about SBF not reading books and saying that it's a waste of time, or something to that extent.  I mean there can't be but maybe 5 kids that are currently at MIT who would agree or think that reading is a waste of time.  Of all the most intelligent people I've met over my  lifetime, the one thing they all had in common was an extreme passion for reading.

Anyways, I hope they throw the book at this guy big time, he deserves to rot in jail!

he didnt buy his degree... his parents did

the dumbest things he ever bought. were any gifts or presents for his ex girlfriend and all the funds he gave her..
.. because she has been in NYC for the last week singing like a freebird giving evidence against SBF

and in that regard, here is another song
money cant buy me love

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liquidators dont mind buying dying companies
its called "asset raiding"

the goal is this:
find a company that has coins/assets but they separately have fiat debt that out paces the assets. where by they cannot cover the debt

EG $500m good assets. $1bill fiat debt = minus $500m(unrecoverable debt)

a liquidator will take on the business. take out the good assets. leaving the dying brand with even larger debt ($500m unrecoverable->$1b unrecoverable)
also pass on the liquidators own bad debt into the dying company.. to clean out the main companies own obligations

and as a final stage.. just let the dying brand die in bankruptcy blackhole

issue is SBF didnt finalise the last stage in the dying businesses he did previously buy

When they're on the verge of dropping and then planned to acquire a bankrupt company, Voyager. I guess that's the dumbest plan that they ever had.
They're for sure is aware that they're about to fall and then had the audacity to acquire assets with a premium from a bankrupt company. And yeah, Binance I think is also dumb in trying to proceed with the deal with Voyager.

His MIT diploma.

Everything SBF said gave the impression he majored in gender studies or wrote books on the morality of whether men should urinate sitting down.

Its shocking to think he graduated from one of the most prestigious technical institutes in the world. With a "degree" in math. (How?) His reactions and the arguments he makes are far more emotional in depth, rather than logical or math oriented.

If I remember correctly, SBF made comments where he tried to compare his waking and sleeping cycles with RAM memory in PCs. But the way he did it, appeared to indicate he does not comprehend how RAM functions. Which appears to indicate his entire MIT education was a waste.

In your opinion. What do you think is the biggest waste of money and most useless thing that SBF spent money on. In hindsight this should of clued in how the exchange just burns money left and right and given us a hint that it might be using client funds.

For me, it was when they announced that they are going into Fashion. The guy basically has no fashion sense what so ever but they decide to get into the fashion industry. Why? How is this good for crypto ? I was always clueless why they would venture into fashion when it doesn’t make adoption for crypto any easier.