/biz/ - Business & Finance

[Anonymous No.52315736]

How the hell did they become insolvent? Did someone siphon/steal funds in secret? Were they trading with user deposits and lost money on it? What the hell is going on?

[Anonymous No.52315879]

>how did they become insolvent?

Well consider the fact that they fucking appeared out of NOWHERE in 2021, were suddenly "le richest man in crypto", is run buy a fucking team of ugly nerd children, and all rose to heights at the same time a literal invasion of VCs invaded crypto and all crossed swords in their gay leverage orgies with each other.

Once they fucking blow up, crypto will finalyl be back to some sense like it was in 2020, before all these gay VC shit.

[Anonymous No.52315972]

>>52315736
Jews
/thread

[Anonymous No.52316050]

>>52315736
>How the hell did they become insolvent?
jewish tricks, This was blackrocks crypto play or it attempt to pull it down. prep your ass cheeks because within 5 years, refusing to fuck a tranny or missing your mandatory pride parade attendance will be a criminal offence

[Anonymous No.52316122]

FTX, a crypto exchange, has a relationship with a crypto trading firm, Alameda Research, both of which were founded by SBF, who is a former Jane Street trader.

In many ways, people suspected somewhat of an “inappropriate” relationship between the firms (Alameda having an informational edge on trading flows via access to FTX data might allow them to front run large FTX customers, for example), but nobody was ever sure how inappropriate.

A few months ago, a bunch of other crypto funds and organizations blew up in a giant liquidation cascade (LUNA, 3AC, etc.), and it looks like perhaps the same happened to Alameda Research.

However, instead of letting Alameda go under, what it appears happened was that SBF bailed them out, using FTX’s balance sheet (so, customer deposits).

The way it seems he did that was by having FTX buy a large chunk of FTT tokens created by the FTT contract, sent to Alameda, and then immediately sent back to FTX, in exchange for other assets. FTT tokens are FTX’s own “currency”, that users can utilize on-platform to lower their trading fees. Because FTX/Alameda control the vast majority of these tokens, in the absence of anything that significantly shakes consumer confidence in the token, and if they have sufficient assets, they can very effectively manipulate the market price of this token by trading it.

This makes it a really useful “plug” for their balance sheet. So they replaced, say, $1bn USD of customer deposits for the equivalent of $1bn USD of FTT token @$26/token, say, and voila, it all balances out… as long as FTT maintains its value, and they don’t have to produce the assets from the hole they’re plugging unexpectedly.

[Anonymous No.52316154]

>>52316122
Then, a week ago, Coindesk leaked Alameda’s purported balance sheet, and it appeared to have been largely made up of FTT, and not much else. The CEO of Alameda replied publicly, “That’s just a part of it, we have a lot more”. This didn’t convince people over at Binance, who were holding $500mm of FTT as well, as the result of their original stake in FTX itself, and who moved those coins to their exchange.

Since they were “seen” to have moved those coins (major transactions on-chain are often noted, and parsed for meaning), CZ publicly shared his concerns, and intention to sell all of the token to the market.

Now, if a major crypto CEO announces concerns about the value of a token/solvency of a company, this has.. consequences, in the market. People are a lot less willing to exchange USD for FTT if CZ is announcing he’s unsure about it. Alameda attempts to alleviate the market’s concerns by announcing they’re willing to buy all of CZ’s token OTC at $22, creating a theoretical “minimum value” of what FTT should be worth.. as long the market believes that they can do that.

As we’ve established, FTT is a “plug”. It only plugs the hole if it maintains its value. If it doesn’t, well , it’s just a hole again.

On the other side, people start withdrawing from FTX, demanding their USD/ETH/BTC etc. back, because they’re concerned they might not have it.

So now there’s pressure on both sides. The hole is getting larger. FTX doesn’t have all those deposits - no exchange or bank really does, that’s why bank runs are bad for everyone.

[Anonymous No.52316173]

>>52316154
Even if you have assets that should be worth what your deposits are worth, it’s hard to unload them all on short notice without losing money, compounding your problems.

So anyway, a day later, SBF and CZ come out and announce Binance is buying FTX (via a nonbinding letter of intent, meaning Binance gets to open the books and look, but may not buy FTX, and therefore customers may lose their deposits) There are rumors that SBF was looking for as much as $6bn USD of liquidity by midday, so the hole they may be in is probably between 1 and 6 billion dollars.

This all happened over 7 days, from vague rumors, to total implosion in ~24 hours. I assume more info will come out over the next few weeks.

[Anonymous No.52316232]

>>52315879
True. I have no idea where this lil kike came from. Glad to see he is blown the fuck out though.

[Anonymous No.52316249]

>>52315736
invasion of crypto. based on metrics, easiest shortable asset was chainlink considering the apr/interest rates for utilization. sergey dumping and the token not having a usecase played a huge part in this role. somewhere along the line, they launched their own token FTT and used that as collateral. but that collateral may or may not have been backed not only their own btc, but their users as well. now by tying FTT with BTC and using FTT as collateral to short link, they opened themselves up to an attack in from two directions, BTC dump, and a link pump. long story short, a btc dump and a link dump kept them afloat, a btc dump and link stagnation kept them semi under the water, a btc pump and link dump was a blessing,and a btc dump + a link pump put them on the verge of hell. however, considering they used FTT as collateral, an FTT dump was infinitely worse than anything else when coupled with a link stagnation or a link pump or FTT stagnation and Link pump. so now when you incorporate that with using user funds, you encounter a dilemma, a very serious one for that matter. Now knowing this, with the impending removal of approximately 25M+ of LINK tokens from the market this puts them in a very precarious situation. i.e immediately liquidation when that event happens. i guess they were fortunate to see the writing on the walls and then looped in CZ, who may or may not have been participating in a similar situation. i suppose this only delays the inevitable though. it'll probably be even worse when chainlink labs decides to remove the 75M LINK cap for staking v0.1 and releases the v1 instead which provides security across all functions, including ccip which by definition must have a consensus mechanism. my guess is that by feeding false information to market participants about the iterations of staking, some people thought the wick to this ticking time bomb was a little longer than expected. but like i said, time will tell. but it isn't looking too good.

[Anonymous No.52316282]

>>52315736
they took user deposits and "donated" them to Biden

[Anonymous No.52316328]

Now that the FTX ship is unfolding and sinking, maybe another exchange should be watched closely as well..

FTX suddenly popped up in 2019 with significantly large endorsements and very little product to show for.

What other exchanges had a similar startup?

I wonder.

[Anonymous No.52316432]

>>52315736
They printed their own fake internet currency, called FTT, and borrowed billions of real dollars against it. Recipe for disaster.

[Anonymous No.52316487]

>>52316122
thank you. this is better than any explanation i've seen on twitter.

[Anonymous No.52316515]

what if sbf was an alphabet boy whose job was to wreck crypto?

[Anonymous No.52316577]

>>52316515
kike bankers golden boy trojan horse

[Anonymous No.52316601]

>>52316173
Anon, this was a wonderful writeup. Thank you.

[Anonymous No.52316607]

>>52316122
>>52315736

> How the hell did they become insolvent?

just look at the pic I am posting, take a good look at it, I want you to think about a product you enjoy, a video game, automobile or anything of that matter...

now take the image of this pic and put these faces at the development and decision making of your chosen product and ask yourself... would you want that?

[Anonymous No.52316654]

>>52316249
How low can link go? Does it just follow btc down or can it somewhat resist since big shorters are dying?

[Anonymous No.52316660]

>>52316122
>The way it seems he did that was by having FTX buy a large chunk of FTT tokens created by the FTT contract, sent to Alameda, and then immediately sent back to FTX, in exchange for other assets
Am I understanding this correctly:
- FTX mints a bunch of new FTT tokens
- Sends tokens to Alameda
- Alameda sends them back
- And this all is made to look like FTX "bought" FTT from Alameda?

[Anonymous No.52316667]

>>52316577

Considering the connections, this very well could be the case.

[Anonymous No.52316680]

>>52316122
>>52316154
>>52316173
Thanks for this

[Anonymous No.52316683]

>>52316173
(You)

[Anonymous No.52316722]

>>52316660
https://cryptohayes.medium.com/speechless-9b1b5114bb2c

[Anonymous No.52316751]

>>52316432

It's not fake. Dafuq you talking about.

[Anonymous No.52316778]

>>52316654
the brief pump yesterday was an attempt to pay back debts. suddenly the market died and everything dumped and link dumped the hardest out of anything else implicated by sbf and friends. likely an attempt at trying to salvage a little bit more money from active shorts. that being said, one of the final shorters is likely CZ. im sure some autist can go ahead and match up time stamps about the ftx acquistion with the link dump and provide you lads with an infographic.

[Anonymous No.52316826]

>>52316515

>being this paranoid

Bankers don't care about crypto if they can make money with it. But they won't and crypto will wreck itself.

[Anonymous No.52316850]

>>52315972
Celsius, bancor and ftx were all led by Jewish people, pretty odd.

[Anonymous No.52316900]

>>52316826

> bankers won't make money with crypto

> paypal the one of the first largely used internet banks profited billions

[Anonymous No.52316960]

>>52316751
>It's not fake.
Oh really? What does it do?

[Anonymous No.52316964]

>>52316515
His dad’s a glownigger for sure. Fuckin Skavens and their glowing rocks.

[Anonymous No.52316982]

>>52316515
what if he was groomed for the role since birth by his literal CIA asset stanford tax law professor lawyer parents and his rise to prominence was inorganic and astroturfed as part of an ongoing asymmetric ww3 and this is actually just different factions in the US, Asia and Europe jockeying for control over the foundations of the digital economy

[Anonymous No.52316998]

>>52316964

No, he's the next warren buffet, have some respect

[Anonymous No.52317026]

ROFLMAO people trusted their money to a **JEW** named "fried bank man" roflmao.

Hahahahahahahahaha

[Anonymous No.52317049]

SBF and Caroline are unironically going to jail

[Anonymous No.52317138]

https://decrypt.co/98890/ftx-announces-1-billion-charity-fund-first-print-ad-campaign-starring-gisele-bundchen

[Anonymous No.52317146]

>>52315736
everything related to crypto is waste of energy. It produces no value. All of those companies will have revenue for as long as people want to play musical chairs with collectible tokens, which hopefully won't be long.

[Anonymous No.52317152]

>>52315736
Unironically never trust the Jew

[Anonymous No.52317166]

NEVER RELAX AROUND JEWS

[Anonymous No.52317175]

>>52316607
>>52316998
Physiognomy is supposed to be a pseudo-science, but anyone who looked at these mugs and thought they are anything other than swindlers must go get checked.

[Anonymous No.52317339]

>>52317175
>Physiognomy is supposed to be a pseudo-science
only midwits think that, physiognomy is god-tier

[Anonymous No.52317615]

>>52317175

> Physiognomy is supposed to be a pseudo-science

Physiognomy is indeed nonsense, however what I'm looking at are the additions to their body, the make up, the stances, the clothing, the hair styles.

Facial expressions / body features or structure are irrelevant.

[Anonymous No.52317699]

>>52317175
Maybe true for immutable traits, but there are traits that are conscious decisions like being unkempt, having scraggly hair, being fat, dressing up like a 16 year old gamer. They're exemplifying a lack of self respect, and it's only a natural instinct to not trust people who can not respect their own image and body.

[Anonymous No.52317870]

>>52317615
>reddit spacing
>has a retarded take

[Anonymous No.52318110]

>>52317699
>immutable traits
What are these so-called immutable traits?
Physiognomy is sculpted by the unimaginable large set of conscious & unconscious decisions across generations.
'Science' is not powerful enough to decode the patterns, because there are too many variables. Physiognomy is 'nonsense,' because we lack the compute power to parse the data
Only a fool ignores the ancient wisdom, especially when it aligns with gut instinct
Take one look at Scam Bankman-Fraud. Look at Harvey Weinstein. Jeffrey Epstein. Chuck Schumer. Nadler. Weiner. Just to name a chosen few