FTX group companies commence voluntary chapter 11 proceedings

Re:FTX group companies commence voluntary chapter 11 proceed... by EVa5I7bHFq9mnYK on Friday November 11, 2022 @12:17PM (#33563575)

Exchange is pretty simple business. Customers deposit coins and fiat, trade between them and pay you commissions. If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever. This guy took customer coins to gamble, and lost. Story as old as Romeo and Julia.

[ Parent | on HN ]

Re:FTX group companies commence voluntary chapter 11 proceed... by vkou on Friday November 11, 2022 @01:42PM (#33564882)

> If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever.

If you don't send any of those coins out, there are no profits for the exchange operator, either. Look at how Coinbase does everything more-or-less by the book, and barely makes money. Trading fees just don't cut it.

Yet, some fly-by-night exchange incorporated in the Bahamas is offering wild signup bonuses and lower fees and yield that would make Scrooge McDuck blush.

[ Parent | on HN ]

Re:FTX group companies commence voluntary chapter 11 proceed... by EVa5I7bHFq9mnYK on Friday November 11, 2022 @05:56PM (#33567948)

Yeah, those trading fees won't support billion dollar IPOs .. investors need to see clear world domination path.

[ Parent | on HN ]