In war, whichever side may call itself the victor, there are no winners. All are losers. The story so far:
FTT is the house token of FTX, a crypto exchange superpower, meaning it’s a sort of Disney dollar for Sam Bankman-Fried’s empire. Binance, the other crypto exchange superpower, said on Sunday that it was going to sell a lot of FTT tokens because of “revelations”.
Changpeng “CZ” Zhao, Binance’s co-founder, now says he didn’t intend to raise the temperature while also . . . uh, quote-tweeting a thread about why FTX and its hedge fund Alameda are “rumoured to be on the brink of bankruptcy”.
The fact that it sparked such levels of “discussions” was surprising. There were also conspiracy theories that I somehow orchestrated this whole thing. If you read this thread, you would appreciate that no one can orchestrate this. 3/4 https://t.co/CV2QwC7Umr
— CZ 🔶 Binance (@cz_binance) November 7, 2022
We wrote about this here, and lots of people complained about Pokemon cards etc, but really it’s all quite simple (ish).
SBF is crypto establishment, and looking to legitimise the system by breaking bread with banks, regulators, politicians and journalists. Chinese-born CZ espouses the more decentralised, libertarian ethos of crypto. In cold war terms SBF is Stalin and CZ is Truman, which is an imperfect and uncomfortable analogy but probably better than the other way around.
SBF has said everything’s fine, BTW. Stay in your homes:
2) FTX has enough to cover all client holdings.
We don’t invest client assets (even in treasuries).
We have been processing all withdrawals, and will continue to be.
Some details on withdrawal speed: https://t.co/tSjhJW3JlI
(banks and nodes can be slow)
— SBF (@SBF_FTX) November 7, 2022
But contagion is already doing what contagion does.
Is this crypto’s moment of mutually assured destruction? Or will someone think of the ecosystem? You’re very welcome not to care, based on the Disney dollars thing, but it’s good drama.