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FTX and Binance

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I am going to Write this as a form of kind of Documentation, this could be Introductory for many to the World of Cryptocurrency, but this will be something that People New or Old to Crypto will be able to Learn from. FTX was what we could call a Brokerage, there are Token Contracts called Automated Market Makers (AMMs) and FTX was another Step out of that, and they were taking your USD as Investment and I think you could Choose what Currencies to Invest in, and much of it was Staking, which makes the FTX Events even more Shameful, lets also get into Real Quick how Disrespectful the FTX Convict has been now to Steph Curry, to Tom Brady, to Peyton Manning, etc. FTX took People's Money, and used it to Pay for these People to Advertise, maybe you could say "Great Move", like a Company in DFW maybe Spending all their Budget on a Rangers Themed Commercial with a Paid Part from one of the Team like a Wheaties Box Commercial for the Brand, that is not Necessarily a Bad Move for a Company. He took their Money, and Spent it Advertising, and got more Money, and did what? Tried to Live like those People, with that Money, all within a Year. Like a Ponzi Scheme, the Money was gone, when Everyone did a Run on the Bank the Bank was Empty. This isn't Really Possible with say Bitcoin, because if you were to be Selling Bitcoins at even as low as $100 or $5 Even, if it went to $0.50, those Buyers would likely be Buying knowing how Rarity Works, and they would HODL and raise the Value, it's a Bear Market when it goes Down, no Matter how low it goes, the lower the Better.

 

So that is the First Problem, he took that Money that came into what we can just for Simple Purposes call "His Brokerage". And if you have seen the Story of the Wolf of Wallstreet, it's almost like he was just doing what he Learned from Watching the Movie. The Guy from Wolf of Wallstreet was Taking their Money, Paying them Smaller amounts, saying that there was Money there, and when it all came to an End he was using Everyone else's Money to Pay for the People before them like a Ponzi Scheme and there was Really nothing there, and he was just pulling in Money, and using it to Pay off Everything before, like Credit, as if he could Create a Facade of Stocks with Value, and that Value being what they put in and more, not telling them that the Money wasn't there. And that is what FTX was doing, with Fancy Graphics on a Screen. That is not to say that Staking doesn't Work, you can go onto an Automated Market Making (AMM) Platform Yourself, and you can Stake. You can Stake in all kind of DeFi, but you will see them saying "X Amount is Locked Up" and it is the Amount that is Basically kind of in the Bank Gaining Interest, and you can add to that, and that is Staking. If the Value of that Currency goes up, you Win, you get 2x, 3x, 4x what you Invested instead of just the Staking Interest, so you choose Wisely and want a Diverse Portfolio. FTX was doing basically like if I said "Give me your Money and I'll do it for you" and then you came back to me and I told you it was all Spent because I needed a House in the Bahamas and there was a Party I couldn't miss.

 

Then Binance, it seems what they have done is they were actually Advertising to Criminals, and asking People to come Launder Money and Sell Drugs and Things, this is much like the Silk Road Case is what we could compare it to. Binance is being Charged for letting Criminals Operate, and I would say that maybe one of the most important Parts of this is that in the Announcement by AG Garland it sounded like he said Binance will be Cooperating or handing over Records as needed to Investigators, so that what might be Called more Petty Crimes, but are the Criminals on the Platform, can be Investigated. Basically, if you have Money Stolen from you because someone Tricked you into something on Binance, and it wasn't Real, and it was like "Send me $500 to get $10,000" or something like that, the FBI could actually maybe look into it now. And Binance also seemed to be doing maybe some kind of Brokerage, but I am not sure, there are SEC Filings that need to be done if you for example, have a bunch of Gold and the Tokens Represent and can Redeem actual Gold, that needs to be Filed with the SEC. Binance did something where they should have Filed with the CFDC, this might get into something that goes back to what Ripple has been doing since before anything else but Bitcoin really existed, and that is like DeFi before DeFi, how Steemit is SocialFi before the Word SocialFi existed. But what Binance did was not so much as a Brokerage, but they are an Exchange, FTX was almost more like Coinbase. Binance has their Own Blockchain, or is a Blockchain, and Formed more as a Currency, the way a Currency Forms, while FTX and Coinbase are more like Banking type Organizations, or ForEx type Crypto Exchanges, but not the same as say an AMM which usually is an Exchange, and a Currency, not like FTX and Coinbase. And Binance apparently Blatantly disregarding the Banking Rules for Money Laundering and Things, actually advertising as a means of Money Laundering. And in giving this comparison of FTX and Coinbase, Binance and say ETH, and then like Pancakeswap and Unicornswap, there is also like we could Point to like any Exchange there are Swaps, then there are Home Made Exchanges that aren't AMM Contracts with Tokens, there are WordPress Exchanges that can be used on a Website, Web 3.0, etc. And what Binance did was to Start to get into some of the Non-Currency type Trades, where it was more of a Stock Market, and not doing Everything Appropriately. And so now also, the FBI can Investigate when someone Steals from you Through Binance.


   
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Having gotten into these Subjects I should Cover something about Investment. If you are thinking about Starting your own DeFi Project, you are Completely Welcome to. I would suggest Reading the "Where DeFi is Headed" Thread where it gets into A and B Tokens and Different kinds of Mining and Everything that can Exist in Smart Contracts. But to continue on the Subject that is brought up by Binance, which is Binance Smart Chain (BSC) and Pancake Swap. If you wanted to get in to DeFi, you would want to Study Maker DAI maybe, which was one of the Earliest DeFi Projects and is a DAO Project that Helps Everyone understand the real Purpose and Function of DeFi. So then, once you understand the DAOs you can start to see the Communities behind the AMMs and Everything.

 

So, the Point being, that if you wanted to come into this Environment and Create an AMM, a kind of DeFi Engine, you wouldn't just want to come in like a Company and Start Fresh, with a New Fresh AMM, you would want to get into something like Maker DAI, maybe Several Projects, you could be involved in 50 Projects, earning 50 Different DeFi Tokens, then Launch your AMM, and have Financing on 7 Different Blockchains that your AMM can expand to. Suddenly People on Different Chains are asking you to be the First on Your Native Chain to List their Token, with that kind of setup you are a much better AMM Platform, and not just a Website kind of like Begging People to come Help you be like Pancake Swap and Unicorn Swap and Just Swap, you could have Investment in one or all of those, and Maker DAI and other Projects like XRP if it is still around. Stake some Coins maybe, Coinbase has a lot of Coins you can Stake. Then make your own AMM Clone or Fork, and make an Announcement Thread on Bitcointalk, and ask Everyone to come over and Start using Your Platform and ask the Exchanges to Start listing their Tokens.

 

 If you are Starting on like a Laptop or something, I would suggest Starting with a Cryptonote Mining Pool, Create a Thread on Bitcointalk and a Group on Facebook, a Twitter Page, etc, make this Mining Pool like a Company, and Give People Updates and Everything, it's a Business Page. Then make Your Own Cryptonote and Pay People out in some % of Your Currency in the Pool. This way you can Start with a number of People to Distribute your Coin to. And People will come and ask to be added to Your Pool. But what Binance did was more like ETH, Cryptonotes are more Simple like Bitcoin and do not have Apps and Smart Contracts, but Cryptonotes can be Mined on Laptops and can't be Traced, no one can see where a Wallet Sends a Coin to, it's not like Bitcoin where Everyone can see what Everyone is Sending around.


   
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