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Assignment: what story explains this? Please use character development and quantitative reasoning. 5 paragraphs, 2 pages double spaced.

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b.biddles

@thalamu_

Jan 2, 2020

anyone know what's up with finex? is this accurate? from @thetokenanalyst

7:46 AM · Jan 2, 2020Twitter Web App

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(If you want to email info@alameda-research.com, we’ll give an interview to anyone who can tell the full story!)

SBF

@SBF_FTX

Jan 2, 2020

1/ Some people gave most of the story here. b) BTC/USD becomes rich on Bitfinex c) people send BTC to Bitfinex d) people sell BTC for USD on Bitfinex e) people withdraw USD from Bitfinex f) people send USD to other exchanges g) people buy BTC, completing the arb

SBF

@SBF_FTX

Jan 2, 2020

2/ This means that crypto is moving in and fiat is moving out, thus the net BTC inflows. Note that selling BTC/USDT does *not* explain this. (a) you would likely just see USDT crypto outflows; (b) the BTC/USDT arb is generally kept in line between BFX and other exchanges.

SBF

@SBF_FTX

Jan 2, 2020

3/ So that's most of the story. But we're missing the character development. I started at (b). What's (a)?

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and

What did I win?

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Paolo Ardoino

@paoloardoino

Jan 2, 2020

Replying to @thalamu_ and @thetokenanalyst

Easy enough. Finex lately has been slightly higher in BTC price. Selling on Finex and withdrawing fiat and move fiat to an exchange that accepts fiat to buy back lower and so on. Tldr: - Finex fiat gateway works quite well - 2 users trust Finex with tons of BTC