The REAL FTX Scandal

[g5000]

Crypto is going through the growing pains that derivatives went through after they crashed the world economy in 2008.

Derivatives are still loosely regulated to this day.

Anyone is still allowed to buy a credit default swap against any derivative product.

That's insane.

With rising interest rates, I am very nervous about what interest rate swaps out there are on the verge of imploding.

 

[sparky]

Some crypto does have backing in the real world. They are called stablecoins. Like Tether. Their stablecoin is pegged to the US dollar.

FTT was pegged to wild imaginations.

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A stablecoin is a digital asset that remains stable in value against a pegged external traditional asset class. Stablecoin reduces price volatility by backing its value against a conventional asset. The backing asset could be a combination of currencies, a single fiat currency, or other valuable assets.

~S~

 

[g5000]

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Featured snippet from the web​

A stablecoin is a digital asset that remains stable in value against a pegged external traditional asset class. Stablecoin reduces price volatility by backing its value against a conventional asset. The backing asset could be a combination of currencies, a single fiat currency, or other valuable assets.

~S~

There are about 200 stablecoins. Tether is the biggest.

 

[g5000]

There are about 500 crypto exchanges similar to FTX.

God knows how many of them are pyramid schemes.

 

[Rogue AI]

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Featured snippet from the web​

A stablecoin is a digital asset that remains stable in value against a pegged external traditional asset class. Stablecoin reduces price volatility by backing its value against a conventional asset. The backing asset could be a combination of currencies, a single fiat currency, or other valuable assets.

~S~

It's the 'other valuable assets' that should make people worried.

 

[g5000]

It's the 'other valuable assets' that should make people worried.

Some stablecoins are backed by real estate, some by oil, some by precious metals, and some by...[cue doom music] other crypto currencies.

 

[Rogue AI]

Some stablecoins are backed by real estate, some by oil, some by precious metals, and some by...[cue doom music] other crypto currencies.

I get that, aside from precious metals the rest are highly volatile. It's a matter of how much 'other' is backing any given stablecoin that creates problems.

 

[CrusaderFrank]

Senate Delves Deeper in Hunter Biden Corruption

"We have to thank Quid Pro Joe for publicly exposing the DNC Ukrainian Money Laundering Operation" -- CF 2/7/20

 

[g5000]

Senate Delves Deeper in Hunter Biden Corruption

"We have to thank Quid Pro Joe for publicly exposing the DNC Ukrainian Money Laundering Operation" -- CF 2/7/20

You're in the wrong topic.

There is no Ukraine money laundering operation. It was shut down when Paul Manafort and Rick Gates were caught.

 

[Rogue AI]

You're in the wrong topic.

There is no Ukraine money laundering operation. It was shut down when Paul Manafort and Rick Gates were caught.

Sounds like you peddling a conspiracy theory, no doubt you can prove there is no money laundering, right?

 

[g5000]

Sounds like you peddling a conspiracy theory, no doubt you can prove there is no money laundering, right?

Do you know what an argument from ignorance logical fallacy is?

You just made one.

 

[Rogue AI]

Do you know what an argument from ignorance logical fallacy is?

You just made one.

Just what you've been doing from the start. Having no way to support your initial claims, you then demand others to provide evidence you cannot actually refute, as there is no ledger for everyone to work off of. You deserve mockery for how you handled this whole issue. I shall gladly provide said mockery.

 

[Tom Paine 1949]

Thanks to g5000 for clearly separating out the ACTUAL scandal and some of the known crimes of the FTX CEO from the FAKE scandal and hoax pushed by many angry Republicans in regard to Ukraine. Having two separate OPs makes matters much clearer.

FTX’s collapse is a good thing! It was only one of many similar firms, and its ponzy scheme character will bring more scrutiny from the SEC and other regulators to this whole b.s. “industry,” which is built upon investor ignorance, greed and libertarian-techno dreams of establishing a currency independent of all government.

There are other useful aspects of the FTX collapse:

a) It has accelerated and probably made more permanent the MUCH GREATER collapse of all crypto stock valuations. They have now lost approximately 1.75 TRILLION dollars of their stock valuation in total. I fully expect (and hope) to see Bitcoin and others fall much further.

Crypto currencies and all their supporting institutions were always a mania drawing idiots, speculators and fraudsters. It is healthy and inevitable that this bubble has burst. CEOs or CFOs who can be proven to have committed actual theft or fraud should of course be locked up.

b) The real scandal also shows the way “business as usual” works in D.C., especially when new financial instruments or technologies (and securities based on them) are introduced: New companies of this sort usually try to and often succeed in remaining virtually unregulated for years. In these conditions corruption (and ponzy schemes) easily take root.

I think this is partly why there were relatively large contributions coming from FTX and this whole unregulated industry. The money went to Republicans as well as Democrats, but since Democrats were the party that controlled Congress and the Presidency in the last two years, they probably got a bit more overall. Like with the “derivatives” trading you mentioned, or Hedge Funds, all this is actually quite normal. Politicians in swing districts especially, whether Democratic or Republican, require huge amounts of money to win elections. They generally take all money offered to their campaigns. BOTH parties are identical in this respect.

C) Lastly the scandal showed the baleful consequences of the Republican-supported Supreme Court “Citizen’s United” decision and other efforts to end limits on corporations, executives and the extremely rich, whose huge campaign contributions constitute a new threat to our republican institutions and to democracy itself.

 

[CrusaderFrank]

You're in the wrong topic.

There is no Ukraine money laundering operation. It was shut down when Paul Manafort and Rick Gates were caught.

Kerry, Pelosi, Romney and Biden all had family working in the Ukrainian Money Laundering Operation, BEFORE the war put it in hyperdrive, but you have your beliefs.

 

[CrusaderFrank]

FTX is the Crypto Liz Truss, a planned fail to give Fascists a rallying call for greater control and oversight.

 

[CrusaderFrank]

Thanks to g5000 for clearly separating out the ACTUAL scandal and some of the known crimes of the FTX CEO from the FAKE scandal and hoax pushed by many angry Republicans in regard to Ukraine. Having two separate OPs makes matters much clearer.

FTX’s collapse is a good thing! It was only one of many similar firms, and its ponzy scheme character will bring more scrutiny from the SEC and other regulators to this whole b.s. “industry,” which is built upon investor ignorance, greed and libertarian-techno dreams of establishing a currency independent of all government.

There are other useful aspects of the FTX collapse:

a) It has accelerated and probably made more permanent the MUCH GREATER collapse of all crypto stock valuations. They have now lost approximately 1.75 TRILLION dollars of their stock valuation in total. I fully expect (and hope) to see Bitcoin and others fall much further.

Crypto currencies and all their supporting institutions were always a mania drawing idiots, speculators and fraudsters. It is healthy and inevitable that this bubble has burst. CEOs or CFOs who can be proven to have committed actual theft or fraud should of course be locked up.

b) The real scandal also shows the way “business as usual” works in D.C., especially when new financial instruments or technologies (and securities based on them) are introduced: New companies of this sort usually try to and often succeed in remaining virtually unregulated for years. In these conditions corruption (and ponzy schemes) easily take root.

I think this is partly why there were relatively large contributions coming from FTX and this whole unregulated industry. The money went to Republicans as well as Democrats, but since Democrats were the party that controlled Congress and the Presidency in the last two years, they probably got a bit more overall. Like with the “derivatives” trading you mentioned, or Hedge Funds, all this is actually quite normal. Politicians in swing districts especially, whether Democratic or Republican, require huge amounts of money to win elections. They generally take all money offered to their campaigns. BOTH parties are identical in this respect.

C) Lastly the scandal showed the baleful consequences of the Republican-supported Supreme Court “Citizen’s United” decision and other efforts to end limits on corporations, executives and the extremely rich, whose huge campaign contributions constitute a new threat to our republican institutions and to democracy itself.

You know the US dollar has lost 99% of its value since the creation of the safe and effective Federal Reserve, right?

 

[CrusaderFrank]

Sounds like you peddling a conspiracy theory, no doubt you can prove there is no money laundering, right?

Now it makes sense why the democrats refused to have the "aid" to Ukraine audited per Rand Paul's request

 

[CrusaderFrank]

Thanks to g5000 for clearly separating out the ACTUAL scandal and some of the known crimes of the FTX CEO from the FAKE scandal and hoax pushed by many angry Republicans in regard to Ukraine. Having two separate OPs makes matters much clearer.

FTX’s collapse is a good thing! It was only one of many similar firms, and its ponzy scheme character will bring more scrutiny from the SEC and other regulators to this whole b.s. “industry,” which is built upon investor ignorance, greed and libertarian-techno dreams of establishing a currency independent of all government.

There are other useful aspects of the FTX collapse:

a) It has accelerated and probably made more permanent the MUCH GREATER collapse of all crypto stock valuations. They have now lost approximately 1.75 TRILLION dollars of their stock valuation in total. I fully expect (and hope) to see Bitcoin and others fall much further.

Crypto currencies and all their supporting institutions were always a mania drawing idiots, speculators and fraudsters. It is healthy and inevitable that this bubble has burst. CEOs or CFOs who can be proven to have committed actual theft or fraud should of course be locked up.

b) The real scandal also shows the way “business as usual” works in D.C., especially when new financial instruments or technologies (and securities based on them) are introduced: New companies of this sort usually try to and often succeed in remaining virtually unregulated for years. In these conditions corruption (and ponzy schemes) easily take root.

I think this is partly why there were relatively large contributions coming from FTX and this whole unregulated industry. The money went to Republicans as well as Democrats, but since Democrats were the party that controlled Congress and the Presidency in the last two years, they probably got a bit more overall. Like with the “derivatives” trading you mentioned, or Hedge Funds, all this is actually quite normal. Politicians in swing districts especially, whether Democratic or Republican, require huge amounts of money to win elections. They generally take all money offered to their campaigns. BOTH parties are identical in this respect.

C) Lastly the scandal showed the baleful consequences of the Republican-supported Supreme Court “Citizen’s United” decision and other efforts to end limits on corporations, executives and the extremely rich, whose huge campaign contributions constitute a new threat to our republican institutions and to democracy itself.

Also, Blockchain is far safer and trustworthy than government. I doubt FTX used blockchain

 

[martybegan]

Some crypto does have backing in the real world. They are called stablecoins. Like Tether. Their stablecoin is pegged to the US dollar.

FTT was pegged to wild imaginations.

Most modern fiat currency is only backed by the faith of people in the economy it is tied to. There are of course calculations and benchmarks that are followed, but the whole concept of fiat currency is that it isn't tied to any item of actual value.

 

[Lesh]

NFTs are an even bigger scandal.

Crypto “backed” by a picture….

Hilarious.

I know they guy who designed most of the NFTs for the NFL and MLB.

He was paid in NFTs and immediately converted to cash because… ya know… scam