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SBF
@SBF_FTX
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_
anyone know what's up with finex? is this accurate? from @thetokenanalyst
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SBF
@SBF_FTX
Replying to
@SBF_FTX
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
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SBF
@SBF_FTX
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.
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SBF
@SBF_FTX
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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BitTradr
@BitTradr
Replying to
@SBF_FTX
and
@SBF_Alameda
Could be variety of reasons.. 300m worth of BTC flowed into Bitfinex (likely from multiple parties) which was then converted to USDT...either to sit on Bitfinex as USDT until price dips, or even transferred out as USDT to other exchanges for trading/arbitrage elsewhere.
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BitTradr
@BitTradr
Replying to
@BitTradr
and
@SBF_Alameda
In any case, those inflow/outflow metrics that token analyst publishes are extremely dodgy.. interesting but dodgy. The exchanges likely hold multiple BTC addresses they don’t know (for OTC desks, or in the case of Bitfinex large USDT activities..)