Unchained The Chopping Block: FTX: The Biggest Collapse in the History of Crypto? - Ep. 418
Nov 9, 2022
Nic Carter, a reformed Bitcoin maximalist, shares his insights on the seismic collapse of FTX and its implications for the crypto landscape. He discusses Binance's potential acquisition and the crisis triggered by Alameda's financial mismanagement. Nic addresses the looming regulatory repercussions and whether criminal charges could arise. The duo also reflects on the future of Solana without Sam Bankman-Fried's support, emphasizing the crucial need for transparency in the industry to restore trust and prevent further chaos.
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Binance and FTX's Fallout
- CZ announced liquidating his FTT holdings, citing risk management and disapproval of SBF's lobbying.
- Alameda Research offered to buy FTT at $22, but Binance refused, leading to FTT's price crash and FTX's liquidity crisis.
FTX's Insolvency Concerns
- FTX's inability to process withdrawals due to FTT's price drop suggests deeper issues.
- Speculation arises about potential criminal misrepresentation to customers and investors regarding FTX and Alameda's relationship.
FTX's Profitability Mystery
- FTX was known for its low profitability despite its size and aggressive marketing.
- It is suspected FTX was primarily funding Alameda Research, where the actual profits were made.