The Fragile Foundation of Crypto

This chapter examines the precarious financial practices of Alameda Research, emphasizing its reliance on FTT, a cryptocurrency from FTX, as a major asset backing. It explores the dramatic impact of a key announcement that triggered a crisis in the crypto market, leading to a bank run and questioning the sustainability of the industry's financial stability. The discussion further addresses the broader implications of this collapse, highlighting issues of transparency and trust in the crypto sector amidst the absence of a safety net like traditional financial systems.