FTX Collapsed…Here’s Why

Discussion in 'Crypto Assets' started by The_Krakenite, Nov 9, 2022.

  1.  
    MrAgi1, TrAndy2022 and formikatrading like this.
  2. CoffeeZilla -- that guy is awesome.
     
    MrAgi1 likes this.
  3. I just found out that Galaxy Digital is also caught in the contagion and may end up going under as well.

    Interest times, it's like watching the FIAT banks before the CDIC became a thing to supply insurance...
     
  4. RedDuke

    RedDuke

    There will be no Timothy Geithner for crypto.
     
    formikatrading and M.W. like this.
  5. People trying to explain ponzi schemes over and over again.
     
  6. maxinger

    maxinger

    If FTX is losing billions of dollars,

    It means someone in this world is earning billions of dollars.
     
  7. Businessman

    Businessman

    But that someone could be in the past.

    eg. If I bought bitcoin to 50,000 from someone last year, that someone might made huge profit last year by selling to me.
    But I would be still be nursing my loss today.
     
  8. Q.E.D.

    Q.E.D.

    Years ago when Bernie Madoff fraud was made public, I quickly bought several pieces of Madoff company products on eBay. Not to profit, but merely to use, although I did give some as gifts, as he was perhaps the greatest example of The Emperor Wears No Clothes.

    However, it would appear the fraud by Sam Bankman-Fried & FTX, puts Madoff to shame. I know, calling a small player in the huge Crypto & NFTs fraud is problematic. But 'til all 20,000 cryptos trade around $1.00 per token, the weavers of the Emperor's clothes will continue.
     
    nrstrader likes this.
  9. TrAndy2022

    TrAndy2022

     
  10. Pekelo

    Pekelo

    They collapsed because they used the crypto flywheel:

    Issue a token>>Get it on your books with high valuation>>Get loans based on that high valuation assets>>Issue another token
     
    #10     Nov 10, 2022
    formikatrading and TrAndy2022 like this.