Conversation

Jul 30, 2021

The beautiful thing is that if this becomes a trend for FTX and Bybit as well, this activity will slowly start moving into DeFi perps. And when that happens, they will actually be ready to scale and handle massive volumes. DeFi has always been about freedom and regulatory arb

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Larry Cermak

@lawmaster

Jul 30, 2021

Generally, though I'm still not convinced whether this will actually affect other exchanges quickly. It seems pretty obvious so far that Binance has been the main target. But eventually this is inevitable anyways

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what is 'this'?

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Countries limiting retail to access derivatives. And if they do allow it, it will become much much more restricted (like leverage)

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I'm not sure that's inevitable

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in a year, do you think more or less of the world's GDP will have access to crypto exchange futures products?

10:12 AM · Jul 30, 2021Twitter Web App

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In 5 years.

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Less

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I feel like it's pretty easy to say that in 2-3 years more of the world's GDP will have access to crypto derivatives. Hard to be sure about what happens next year with politicians so clueless at times about what crypto really is.

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I also feel like Binance's reputation won't be very conducive to building trust with governments which is why I love that

@FTX_Official

is just becoming a ubiquitous brand. We all trust everything our fav teams endorse right?

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Definitely less. I've lived through this rodeo already in the regulated gambling space. Wait till 'responsible trading' (or whatever they'll call them) regs come into force. They'll decimate the industry by reducing LTVs by an order of magnitude.

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What’s LTV? Loan to value? 🤔

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more but also stricter regulation in jurisdictions where it does occur

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Inevitable or not depends on lot of factors, and being part of Regulatory framework shaping and curation should be paramount for leading CEXs to ensure its a win-win scenario for all stakeholders involved!

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I don’t see much chance in a year time. People will find loan from defi, or from outside crypto space to buy crypto. Money is quite cheap now in today’s near zero interest rate environment. Longer term, regulators may encourage to use derivative/leverage for hedging/protection.