Bankless Part 1: Binance Buying FTX | CZ vs SBF
Nov 9, 2022
Dive into the chaotic world of crypto as the hosts explore the dramatic collapse of FTX alongside Binance's last-minute intervention. Key discussions revolve around the staggering 80% drop of the FTT token and the uproar over mismanagement at FTX and Alameda. Tensions rise as they analyze the shifting dynamics between DeFi and CeFi, the urgent quest for liquidity, and the ensuing distrust among users. With power shifts at play, listeners gain insight into the urgent need for transparency and the implications for the future of cryptocurrency.
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CZ's Power Move
- CZ's announcement of FTT liquidation was a strategic power move.
- Publicly dumping $2.1B of illiquid FTT signaled an attack on FTX.
Alameda's Offer
- Alameda's CEO offered to buy CZ's FTT at $22, projecting strength.
- This reminded many of Do Kwon's similar behavior before Terra Luna's collapse.
Alameda's Insolvency and Commingling
- Alameda's efforts to defend the $22 FTT price failed, suggesting insolvency.
- On-chain data revealed Alameda sending funds to FTX to facilitate user withdrawals, implying commingling.