Economist Podcasts Tales from the crypto: An exchange implodes
Nov 11, 2022
Alice Fulwood, Wall Street correspondent for The Economist, discusses the dramatic collapse of FTX, a cryptocurrency exchange that faced an $8 billion crisis and severe liquidity issues. Dominic Ziegler, Senior Asia correspondent, sheds light on the stateless Sama-Bajau people, exploring their struggles with identity, access to services, and marginalization. The conversation reveals the broader implications of these crises—from the blockchain world to the lives of nomadic communities in Southeast Asia, drawing connections between financial chaos and social issues.
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FTX Collapse
- FTX CEO Sam Bankman-Fried tweeted that FTX was fine and assets were secure.
- However, a subsequent run on the exchange led to its collapse and a reported $8 billion shortfall.
SBF's Image
- Sam Bankman-Fried, founder of FTX, was seen as a different kind of crypto entrepreneur.
- He advocated for earning a lot and giving it away, contrasting with the stereotypical "crypto bro" image.
Crypto Exchange Basics and FTX's Issues
- Cryptocurrency exchanges hold customer assets and facilitate buying/selling crypto.
- FTX's trouble began with rumors of illiquidity, leading to a customer exodus and a halt in withdrawals.