Take a billionaire,
How long does it take to become a billionaire?
That is, it may only take "the time of a tweet."
Moreover, this battle has caused a wave of blood spraying from bigwigs such as Sequoia Capital, SoftBank, Temasek, and the Ontario Teachers' Pension Plan.
In short, a major earthquake in the cryptocurrency world has begun.
In the circle, everyone is used to calling him SBF.
Simply put, this guy himself is a traditional financial trader. After discovering that the cryptocurrency circle seemed profitable, he founded the cryptocurrency trading platform FTX.
SBF, with a net worth of more than 15 billion US dollars, has squeezed into the top 500 of the world's richest list.
He has many nicknames, such as the Central Bank of the cryptocurrency world, the next Buffett, etc.
Anyway, his iconic afro often appears on the covers of various magazines and newspapers.
But, this unkempt billionaire,
In just a few days, FTX, the "cryptocurrency giant" he founded, will be stranded.
His billions of assets, like his hairstyle, evaporated in an instant.
All of this actually originated from a report from the cryptocurrency media CoinDesk.
So the power of media is strong.
The report found that another company named Alameda founded by SBF mainly engaged in some high-risk, high-leverage investments, but 88% of the main assets recorded in its account were FTT tokens issued by its own exchange FTX.
Nari 🤣
In terms of total volume, 70% of the FTTs on the market are in Alameda’s hands.
As soon as the news came out, the old guys in the cryptocurrency circle who were scared by the sickle began to worry.
A vague guess spread:
Alameda and FTX are both SBF companies, so SBF can transfer the funds from one hand to the other to allow Alameda to obtain a large amount of FTT issued by FTX at a low price.
Alameda then raises the price of the currency by hoarding FTT, and can use FTT as collateral at a high price to borrow money from FTX.
Alameda then used the borrowed money to make high-risk, high-leverage investments.
In essence, the FTX exchange is just Alameda's blood transfusion bag, outputing blood crazily.
Among them, Alameda Investment has been making money all the way. If the price of FTT as collateral tends to be stable, this "left hand to right hand" model can actually be maintained as long as it is not exposed, Lanbo Bay.
However, if there is a huge loss in investment, or the price of the collateral FTT plummets, then FTT is likely to be sold off and liquidated in large quantities.
At this time, the price of FTT will be pushed down again, triggering a larger-scale liquidation, thus forming a "death spiral", and the magic of love will circle.
As the saying goes, if there is a possibility, then it will definitely happen. It’s just that you meet the right person at the wrong time.
Just when SBF, with the afro hair, responded that everything was fine and not to worry, a bald man suddenly emerged from the darkness.
SBF and Zhao Changpeng were once partners, but later became competitors due to overlapping businesses.
Boss Zhao sent a tweet, which roughly means:
Because of concerns that FTT may experience a "death spiral", Binance decided to sell off its 23 million FTT tokens for safety reasons.
This tweet symbolizes that Binance and FTX have officially started a war, and SBF’s nightmare has also begun.
Even the world’s largest exchange is afraid and thinks FTX and Alameda are definitely risky.”
"Zhao Changpeng's massive sell-off will definitely drive down the price of FTT. He says he is afraid of a death spiral, but in fact he wants to trigger one." (What a big cut)
As a result, panic began to intensify, and everyone started selling FTT, causing the price of FTT to fall all the way.
The collateral FTT was worthless, and people soon began to worry that Alameda might not be able to repay the money it borrowed from FTX.
Therefore, users began to frantically withdraw funds from the FTX exchange, fearing that they would be taken advantage of if they were too slow.
After all, no one will know whether FTX has misappropriated users' deposits to lend to Alameda.
In the end, it turned out that everyone's guess was correct. Most of those who were slow in withdrawing money were probably unable to withdraw any money.
The story of the world's number one exchange seizing the opponent's weakness and suffocating the opponent with a tweet sounds very exciting.
But we all know that the most painful thing is (pig heart).
After the crisis, SBF had no choice but to bow down and borrow money from Wall Street and other peers, but most of the attempts were in vain. With no other options left, he had to find Boss Zhao.
However, he, the "culprit", expressed his willingness to provide help, saying that after due diligence, if no other major problems were found, he could acquire FTX for $1.
Today, the earthquake caused by the FTX bankruptcy is still continuing. Some people compare it to the "Lehman crisis" in the cryptocurrency world. It may be the prelude to a major collapse of the cryptocurrency world. Of course, risks and opportunities are equal.
