F to the T to the X
A Remembrance Day to remember
Not even the crypto markets are immune to the VERY visible hand of one Jim Cramer.
The story that broke on Remembrance day ago is still continuing now. The Twitter Space hosted by Mario Nawfal has been live since then, with various industry insiders, whistle blowers, experts and even oddball drop ins are discussing the ongoing fallout of the collapse of one of the biggest crypto exchanges on the market. Even the illustrious Gatsby of out roaring 20’s, Elon Musk himself dropped in to comment on his interaction with the main culprit behind this monolithic Ponzi scheme. Sam Bankman-Fried, who was worth 14.9 billion just a week ago, should soon be taken into custody by police in the Bahamas after fleeing the US.
His crypto exchange, FTX, which was backed by big money, had ties to the SEC, and had no real board of directors, filed for bankruptcy on November 11th. With funds invested belonging to everyone from BlackRock to Ontario Teachers' Pension, it turned out to be nothing more than a flagrant fraud run by a bunch of arrogant horny Zoomers, all dating each other and living the American Dream in the Bahamas, where their company was headquartered. The firm leveraged at a ration of 1 billion liquidity to 9 of liabilities, and had received recent injections of capital from other power players in the market in order to stay afloat.
Doubtless, we have not heard the last of the fallout from this saga, so it begs the question: When will the second plane hit? Which exchange will it be? Is there a building seven? And how many casualties will there be at the end of the day? Will the FED end up sending in taxpayer funds to try and stem the bleeding?
One thing for sure, this is the 9/11 of the crypto world. Started off by a “hack”, it’s going to have many repercussions on the industry. There’s no questions in my mind that a crackdown form regulators is coming, and coming fast. Edward Snowden has already dropped a comment on the situation, and I’m sure we will hear more from others as the days go by. History might not repeat it self, but it certainly rhymes. Bernie Madoff would be proud - such talent, at such a young age!
More on this story as it develops. Listen in now, as more exchanges seem to be joining the elephant graveyard in real time.
Your editor-in-chief and shitposter-at-large,
Denis Grinko