Number Go Up: Inside Crypto’s Wild Rise & Staggering Fall with Zeke Faux
The HC Commodities Podcast
The Collapse of Cryptocurrency Prices and Companies
This chapter discusses the events leading to the 2022 collapse of cryptocurrency prices and the subsequent collapse of various companies in the crypto world. It mentions specific incidents such as the downfall of Jack Juan and Luna, the withdrawals from Alameda triggered by this downfall, and the text sent by Sam Bankman Fried to ZZ who runs Binance, which unraveled the situation. The collapse of Tara Luna scheme, which paid 20% interest, is also mentioned. It highlights that many people in the crypto world had bet on the prices of currencies going up, but they all went down. Tether, however, held up remarkably well despite the market downturn. The chapter also touches upon the borrowing of money by the trading arm of FTX and the subsequent failure of the exchange due to customer funds being used illegitimately. It concludes by discussing the author's visit to Sam Bankman Fried's penthouse in the Bahamas, where they spent hours discussing the situation and Sam's attempts to explain where the money had gone.
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