<story><title>Ftx.com Has Probably Collapsed</title><url>https://forum.effectivealtruism.org/posts/tdLRvYHpfYjimwhyL/ftx-com-has-probably-collapsed</url></story><parent_chain><item><author>sillysaurusx</author><text>Does anyone know how Coinbase avoided this fate? I really thought it would be them to fall, but they proved everyone wrong.&lt;p&gt;There’s some key difference between Coinbase and an exchange like FTX. Is it because FTX had a token, and then leveraged themselves using their own token?&lt;p&gt;Binance has a token too. Are they in similar danger? It would be an interesting contrast to know why one exchange is safe vs another.&lt;p&gt;Here’s SBF testifying in front of congress in Dec 2021 that FTX is completely transparent and therefore safe: &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.tiktok.com&amp;#x2F;t&amp;#x2F;ZTRxC7XrT&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.tiktok.com&amp;#x2F;t&amp;#x2F;ZTRxC7XrT&amp;#x2F;&lt;/a&gt;&lt;p&gt;Consumers need to be able to research claims like these. Is there a way to make a “Warning: this exchange is over leveraged” indicator? Or is it just impossible to know?</text></item></parent_chain><comment><author>hailwren</author><text>Coinbase avoided this fate by being a us regulated company. FTX.us is still above water. It’s the Bahamas based company that was able to cook the books and is now defunct.&lt;p&gt;As for Binance, they have the SAFU (&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;academy.binance.com&amp;#x2F;en&amp;#x2F;glossary&amp;#x2F;secure-asset-fund-for-users&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;academy.binance.com&amp;#x2F;en&amp;#x2F;glossary&amp;#x2F;secure-asset-fund-fo...&lt;/a&gt;) which they just topped up to $1B at current market prices (today). You can verify the balances on chain, but there aren’t any statements about outstanding obligations, and there are no guarantees that those funds haven’t been earmarked for other things.</text></comment>
<story><title>Ftx.com Has Probably Collapsed</title><url>https://forum.effectivealtruism.org/posts/tdLRvYHpfYjimwhyL/ftx-com-has-probably-collapsed</url></story><parent_chain><item><author>sillysaurusx</author><text>Does anyone know how Coinbase avoided this fate? I really thought it would be them to fall, but they proved everyone wrong.&lt;p&gt;There’s some key difference between Coinbase and an exchange like FTX. Is it because FTX had a token, and then leveraged themselves using their own token?&lt;p&gt;Binance has a token too. Are they in similar danger? It would be an interesting contrast to know why one exchange is safe vs another.&lt;p&gt;Here’s SBF testifying in front of congress in Dec 2021 that FTX is completely transparent and therefore safe: &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.tiktok.com&amp;#x2F;t&amp;#x2F;ZTRxC7XrT&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.tiktok.com&amp;#x2F;t&amp;#x2F;ZTRxC7XrT&amp;#x2F;&lt;/a&gt;&lt;p&gt;Consumers need to be able to research claims like these. Is there a way to make a “Warning: this exchange is over leveraged” indicator? Or is it just impossible to know?</text></item></parent_chain><comment><author>RC_ITR</author><text>Coinbase makes money on fees and doesn’t lend out deposits.&lt;p&gt;Seriously look at their balance sheet!&lt;p&gt;They have zero risk of this kind of insolvency, their only risk is people stop using them to trade.&lt;p&gt;Say what you will about that being a weird&amp;#x2F;dumb model but here we are.</text></comment>