Comment Text:
I think that the LedgerX platform was great before FTX purchased it. The only problem would be that they don’t have a lot of liquidity, and you would see some price dislocations and huge gaps on the Bid/ask spread of options contracts.
Unfortunately, there’s not much that FTX does that is positive other than spending hundreds of millions of dollars on ridiculous sponsorships. But just for a second I’m going to pretend that all of that bad behavior doesn’t exist, I’m going to pretend that they are a real organization — not the marginally suspicious entity that came out of nowhere, that nobody was using even a year ago… which is incredibly suspect, and can be vehemently argued.
But just considering the idea of opening up these kinds of leverage in a crypto space that is already inherently risky, with a typically low investor IQ, filled with a liquid assets, on a liquid exchanges, managed by very dubious individuals (Sam, CZ, Etc).
These future products don’t need this kind of leverage, what we need is a variety of exchanges that offer clean, very liquid conditions for trade execution, many options contracts, and a constant flow of liquidity that is not biased towards specific entities.
Even the so-called “experts” in the Crypto space tend to be people from traditional equities and fixed income markets that either blew up their funds and escaped into the Crypto space with a relatively unknown, or have convinced people that they already lost money for to reinvest into this wild new frontier. The notion that we have “competent fiduciary“ in the Crypto space is laughable.
Extending leverage in the futures and options market is no different than extending a “marker“ to a degenerate gambler at a casino.
Those are my thoughts. But, if FTX has anything to do with this, I’m sure plenty of lobbyists carrying envelopes full of cash will usurp anything I might say in my message.
