Was at £32bil, now at £0?? Seems like an opportunity to me! Ima buy the dip!

Source:

Business of Apps

Coingecko

Tradingview

TechCrunch

Genuine Impact newsletter

Tools:

Figma, Tableau

Can someone explain to me life I’m 5. What happened? Why it matters? This whole crypto thing is confusing to me.

[deleted]

That helps. Still confusing, but thank you!

FTX was not holding customer money/crypto. They were borrowing it without customer knowledge to make other trades. So when a bank run happened which is when customers run to the bank to take out their money/crypto due to panic from falling prices. FTX was unable to give customers their money/crypto, and led to customers being locked out of their accounts. So now FTX is worth nothing, and there is a lot of people who trusted them who are going to lose everything.

[deleted]

Oh my. This is a s a big deal. It’s like what happened to George Baileys bank in It’s a Wonderful Life, but worse because FTX was cheating/lying. Horrible.

Same thing happened with Voyager and Celsius exchanges. There was a lot of people scamming.

[deleted]

It's an exchange, not a bank. They were supposed to be a place to hold/exchange your crypto.

You missed that Binance was considering providing a lifeline to FTX. Instead they posted information that basically started a bankrun because Binance was supporting FTX and FTT.

Basically instead of throwing a lifeline they hit them with a cement brick.

They are talking about the company valuation FTX, which went to 0$. If a company has way more debt than assets 0$ is also not a good deal. The company needs $8 billion as liquidity to start up again.

The company token is FTT which went from 78$ at the peak to now 3$.

If it went from $78 to $3, I can only imagine that when I swings back up it will hit $20-30k

[removed]

[deleted]

> Ultimately FTX got into such a pickle that Binance (#1) bought them for likely pennies on the dollar.

How is this being upvoted? Binance PULLED OUT of the deal. That's been the biggest story of the past couple days. How did you get that wrong?

Is this actually true? Sounds completely illegal and I haven't seen it reported anywhere.

Except banks actually have to follow regulations to separate and mitigate these risks:

https://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Protection_Act

But what will happen for those who had lets say BTC on FTX. Will they be able to get that?

Hopefully people go to jail, but realistically they're probably going to all skate and still be wealthy.

Like the S&L crisis right?

$32bn valuation? Holy fuck...The company was founded in 2019...

Gonna have to add another chart.

FTX Says It May Have Been 'Hacked,' as $600 Million in Crypto is Mysteriously Drained Overnight

Fraud, fraud is what happened. They misappropriated customer funds for their own trading via Alameda, a subsidiary. FTX had no cfo, no regulatory compliance department, etc. it was a bunch of math nerds who did well during bull market and thought they were invincible. Google Caroline Ellison of Alameda, pick the video of your choice - says it all.

Good news: the downstream impacts should be nominal and contained within more aggressive firms dealing in crypto and that don’t do due diligence.