How the bankruptcy of FTX, the world's third-largest crypto exchange, undermines trust in cryptocurrency and decentralized finance, making it even more difficult for crypto to ever be taken seriously as a monetary alternative.
Topics covered include:
- How FTX squandered its customers' deposits
- How FTX is another example of a private money bank run
- How traditional securities lending works and why it is very low risk compared to the highly speculative nature of cryptocurrency lending platforms
- How FTX's demise is impacting numerous entities including Voyager, BlockFi, Bitcoin miners, venture capitalists, and many others
- How should individual investors store cryptocurrency, and does it even make sense to continue to own it
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Show Notes
Don't Miss Out on Crypto: Larry David FTX Commercial)
The spectacular implosion of crypto’s biggest star, explained by Emily Stewart—Vox)
Divisions in Sam Bankman-Fried’s Crypto Empire Blur on His Trading Titan Alameda’s Balance Sheet by Ian Allison—CoinDesk)
FTX held less than $1bn in liquid assets against $9bn in liabilities by Antoine Gara, Kadhim Shubber, and Joshua Oliver—Financial Times)
FTX balance sheet, revealed by FT Alphaville—Financial Times)
FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall by Vicky Ge Huang, Alexander Osipovich, and Patricia Kowsmann—The Wall Street Journal)
After FTX: Rebuilding Trust in Crypto’s Founding Mission by Noelle Acheson—CoinDesk)
How Sam Bankman-Fried’s Crypto Empire Collapsed by David Yaffe-Bellany—The New York Times)
Exclusive: At least $1 billion of client funds missing at failed crypto firm FTX by Angus Berwick—Reuters)
Investors Who Put $2 Billion Into FTX Face Scrutiny, Too by Erin Griffith and David Yaffe-Bellany—The New York Times)
FTX signs deal with option to buy BlockFi for up to $240 mln by Niket Nishant and Aditya Soni—Reuters)
Voyager Digital and Voyager Official Committee of Unsecured Creditors Provide Update on Reorganization Plan—Cision)
Crypto lender BlockFi says it has significant exposure to FTX by Manya Saini and Shailesh Kuber—Reuters)
Coinbase Quarterly Earnings)
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