/biz/ - Business & Finance

>>52381555
put me in the screen cap.

Im close to getting margin called and lose my position and half my money. Please help me somehow.

FTX, a crypto exchange, has a relationship with a crypto trading firm, Alameda Research, both of which were founded by SBF, who is a former Jane Street trader.

In many ways, people suspected somewhat of an “inappropriate” relationship between the firms (Alameda having an informational edge on trading flows via access to FTX data might allow them to front run large FTX customers, for example), but nobody was ever sure how inappropriate.

A few months ago, a bunch of other crypto funds and organizations blew up in a giant liquidation cascade (LUNA, 3AC, etc.), and it looks like perhaps the same happened to Alameda Research.

However, instead of letting Alameda go under, what it appears happened was that SBF bailed them out, using FTX’s balance sheet (so, customer deposits).

The way it seems he did that was by having FTX buy a large chunk of FTT tokens created by the FTT contract, sent to Alameda, and then immediately sent back to FTX, in exchange for other assets. FTT tokens are FTX’s own “currency”, that users can utilize on-platform to lower their trading fees. Because FTX/Alameda control the vast majority of these tokens, in the absence of anything that significantly shakes consumer confidence in the token, and if they have sufficient assets, they can very effectively manipulate the market price of this token by trading it.

This makes it a really useful “plug” for their balance sheet. So they replaced, say, $1bn USD of customer deposits for the equivalent of $1bn USD of FTT token @$26/token, say, and voila, it all balances out… as long as FTT maintains its value, and they don’t have to produce the assets from the hole they’re plugging unexpectedly.

Now that CZ owns FTX, will BTC go to 100k?