And while FTX hot wallets were being topped up from other exchanges, Circle and Alameda, there was no cold storage to be found… The ensuing assault on FTT’s price saw FTX and Alameda pulling every drop of liquidity they could find. Now, not only did CZ have a target price, the entire market did too. After first attempting to dispel the balance sheet FUD, she offered to buy Binance’s FTT position at $22, less than two hours later. His plan to reveal FTX’s overdependence on FTT started when Binance moved over half a billion dollars’ worth of FTT obtained as a result of the exchange’s “ exit from FTX equity” last year.ĭespite insisting the plan was to “ minimise market impact”, the insinuation was clear undermine confidence in the solvency of Alameda and FTX, while reminding the market of the collapses of Luna and Celsius.Īlameda’s then new CEO Caroline Ellison potentially made a fatal mistake by playing her hand too early. Whether CZ’s actions were pre-planned or not, shortly after the revelation that his competitor was overly exposed to FTT, CZ began to make his move. Nobody could have imagined the extent of the damage revealed yesterday, but one man had the motive, the means and the opportunity to find out.ĬZ’s takedown of FTX was perfectly executed. Given all this, putting the shady nature of the partnership to one side, they should have at least been making plenty of money, right? The financial details of the relationship between FTX and Alameda Research were always unclear.īetween them, they created a lucrative system: Alameda’s farming, fueled by FTT collateral, investing in multiple L1s with predatory tokenomics and their ecosystems of Dapps. Now, facing accusations of a $10B shortfall, SBF’s turn at being crypto’s main character has come to an end. SBF will likely be remembered as one of the biggest setbacks for those who want to see this industry succeed, and as one of the biggest traitors for those who hold the ideals of cryptocurrency with any regard. Then following the publication of his proposed guidelines for crypto regulation, he lashed out at criticism, while struggling to defend his new beliefs, and mocking the competition about who was in the driving seat for regulatory capture. “Effective altruism”, millions of dollars in lobbying, and an unprecedented bull market meant that many turned a blind eye to FTX and Alameda’s predatory tactics.īut once it became clear that they were playing by their own rules (and still losing), the facade suddenly slipped.Ī brief stint as a regulatory mouthpiece, trying to appeal to politicians and financial authorities, had already turned SBF into an enemy in the eyes of the community.
Our circus has burnt down, and all of the clowns have nowhere to go. Yikes - dumb fuckin take - SBF - FTX - CZ - Binance read this article also in:
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