Several entities numbering above 150 including FTX.com, Alameda Research, FTX US, filed for bankruptcy last weekend following the Insolvency of FTX.com which resulted in the drastic decline in the value of its native token $FTT. – SBF CEO of FTX filed for Chapter 11 Bankruptcy for FTX, Alameda Research and others.
1) Hi all:
Today, I filed FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings in the US.
— SBF (@SBF_FTX) November 11, 2022
BlockFi has also gone busto thus announcing limitations on Withdrawals and other Platform functions will be halted until clear direction on the FTX/Alameda Research Crisis.
— BlockFi (@BlockFi) November 11, 2022
Amidst FTX face off Crypto.com showed that more of their customer deposits are in ShibaInu Token than Ethereum on its latest released Proof of Reserves.
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My key take away from FTXCRASH:
Government will step in with HEAVY regulations, introducing CBDC with UNIQUE wallets linked to Identity Cards. We can still make money, but taxes and new rules will make it harder for retail money.
Cryptocurrency will fall under serious SEC and CBDC regulations, MT GOX exploited the space Eight (8) years ago The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster, however the Crypto Industry survived that impasse, Crypto in general will face Stiff Scrutiny and intense Criticism in the coming months – SBF was trying to enable congress overhang by going after Decentralized Finance (DEFI) and forming monopolistic arrangements which will see FTX champion Crypto Sovereignty across the globe but unfortunately he’s running an entity strictly on Ponziconomics.
What assets does exchange’s hold? And I mean tangible assets. A Bank may fail, but still has e.g Customer Debt as assets that can be the counterpoint to a bailout. When you hold Tokens whose value is 100% perception and speculation, no sane person or entity would bail you out.
It is the operational practice within FTX and Alameda Research that got screwed up. I have no doubt CZ-Binance saw an opportunity to take an aim at his competitor and seized it, but I’m not sure even he knew how bad it was.
Interestingly, CZ-BINANCE is Launching a Crypto Industry Recovery Fund to help cushion the effects of uncertainty’s. FTX going down is not good for anyone in the industry, but it needs to be done to get scammers and manipulators off the industry.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ ? Binance (@cz_binance) November 14, 2022
When $FTTC, Zack Tackett Former head of Institutional Sales at FTX is suggesting Two Formulas A/B: Bankruptcy or Issuing A consolidation Token ? Alameda has over leveraged positions, they can’t bring $FTT back to top. At this point I don’t think even CZ can handle the hole created by SBF’s FTX, this situation is presumably dragging other Crypto Exchanges on the part of Insolvency – Panic Withdrawals from DEXs and CEXs will lead to more catastrophic cryptocrash.
1/I obviously have 0 say at this point, but hey, interested to hear others' thoughts:
Two options:
A) bankruptcy
B) token[THESE ARE NOT CONCRETE NUMBERS]
Liabilities: -8.8bnLiquid assets: 900m
Less liquid: 2.037bn
Illiquid: 3.2bnliquid hole: -7.9bn
illiquid hole: -2.66bn— Zane Tackett (@tackettzane) November 11, 2022
On the other hand due to rising fears amongst Crypto enthusiasts, the campaign on Self- Fund Custody has generated increased momentum, Crypto Analysts and OGs on Twitter has relayed on the need for Cryptocurrency degenerates to save funds using a self custody hardware interface presumably a Ledger Nano device – thus leading to a potential increase in transfer of funds from Centralized Entities, Binance recently tweeted about ‘Self-Custody using a Hardware Wallet’;
“Binance has industry leading security practices in place to ensure that your funds are always SAFU. However, if you want to go down the route of self-custody, you can store your crypto offline through a hardware wallet”.
Going forward the Cryptocurrency industry will face a strong resentment from Institutional Investors, Crypto Users and Governments across the globe owing to the Lackadaisical attributes of SBF and Alameda Research.
Written by; Paul Ugbede Godwin.