FTX’s financial black hole leaves Binance balking at rescue plan

Re:FTX’s financial black hole leaves Binance balking at resc... by peterweyand on Wednesday November 09, 2022 @03:33PM (#33537441)

What are the risks for generalized financial contagion in the traditional sector? I understand that crypto has been a way for wealthy individuals to hide finds from taxation, so if a bunch of wealthy dweebs lose their shirts I don't particularly care. On the other hand, I don't want to see this sparking another housing crisis or currency/FX crisis.

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Re:FTX’s financial black hole leaves Binance balking at resc... by UncleEntity on Wednesday November 09, 2022 @03:58PM (#33537723)

Back in the dotcom bust pretty much everyone said “yeah, they new the risks” and generally didn’t care about the losses.

When the housing bubble collapsed you had millions of people who probably didn’t know the risks (because everyone with a voice was saying housing prices never go down) and politicians cared a whole lot.

I’d say even if the whole crypto craze went bust overnight all you’d get is a collective shrug.

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Re:FTX’s financial black hole leaves Binance balking at resc... by adrr on Wednesday November 09, 2022 @04:13PM (#33537929)

Depends if Alameda goes down. They have billions of debt and we don't know who provided the capital. It could be traditional finance or it could be VTX. We just don't know yet.

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