2min chapter

Clearer Thinking with Spencer Greenberg cover image

The FTX catastrophe (with Byrne Hobart, Vipul Naik, Maomao Hu, Marcus Abramovich, and Ozzie Gooen)

Clearer Thinking with Spencer Greenberg

CHAPTER

What's Your Analysis of What Really Happened to Alameda?

Alameda was basically doing more poorly from a market making perspective, but they were doing really well on sort of directional trading. And they started using leverage with borrowed funds from FTX probably with collateral that they had. From there things just started going pretty poorly for the crypto market in general when interest rates started rising and risk assets became just went lower because that's what happens when interest rates rise.

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