I’d think Sam has enough experience in the space (incl. negotiating these types of deals from the position of the buyer) that he wouldn’t let himself be manipulated. So the fact that he’s interested in sealing the deal means he may be in a pretty poor negotiating position. :/
While I agree that FTX.com has more than enough experience negotiating deals objectively, I also think that this decision considers the fear that CZ is creating.
This is because as long as FTT gains value after Binance’s sell (due to speculation), then there is no need to agree to the deal. Whether FTT gains value is influenced by investor sentiments.
The deal with Binance shows that SBF does not expect FTT to appreciate after Binance’s sell. This would be the case when fear is associated with FTT. This is what CZ is creating.
Based on this line of reasoning, it is not necessary to agree to the deal with Binance, if one can mitigate the fear being caused by CZ.
Market price manipulation is illegal, so, technically, CZ cannot do anything besides influencing investor sentiments. One can argue that mitigating CZ’s ability to threaten can be the key here, because that is the only effective strategy to keep FTT value high.
One way to mitigate one’s ability to threaten is disclosing their techniques, such as deliberate motivation of negative emotions by appeal to biases, possibly using Twitter bots, etc.
On one hand, ignoring Binance’s offer had to be already thoroughly considered by FTX.com. On the other hand, introducing an external motivation to find a solution by ‘making CZ sincerely contribute’ or ignore him could improve the sentiments around FTT value and thus resolve the problem.
I’d think Sam has enough experience in the space (incl. negotiating these types of deals from the position of the buyer) that he wouldn’t let himself be manipulated. So the fact that he’s interested in sealing the deal means he may be in a pretty poor negotiating position. :/
While I agree that FTX.com has more than enough experience negotiating deals objectively, I also think that this decision considers the fear that CZ is creating.
This is because as long as FTT gains value after Binance’s sell (due to speculation), then there is no need to agree to the deal. Whether FTT gains value is influenced by investor sentiments.
The deal with Binance shows that SBF does not expect FTT to appreciate after Binance’s sell. This would be the case when fear is associated with FTT. This is what CZ is creating.
Based on this line of reasoning, it is not necessary to agree to the deal with Binance, if one can mitigate the fear being caused by CZ.
Market price manipulation is illegal, so, technically, CZ cannot do anything besides influencing investor sentiments. One can argue that mitigating CZ’s ability to threaten can be the key here, because that is the only effective strategy to keep FTT value high.
One way to mitigate one’s ability to threaten is disclosing their techniques, such as deliberate motivation of negative emotions by appeal to biases, possibly using Twitter bots, etc.
On one hand, ignoring Binance’s offer had to be already thoroughly considered by FTX.com. On the other hand, introducing an external motivation to find a solution by ‘making CZ sincerely contribute’ or ignore him could improve the sentiments around FTT value and thus resolve the problem.