I have been following this quite closely.I thought this was a very good synthesis of what happened with FTX.
TLDR: Smart young billionaire needs to have a high risk tolerance to get where he is, and when you invest with him you are going to have that risk projected onto you.
View: https://twitter.com/callicrates_/status/1590543512055214080
The facts are still not fully out and rumors are still flying around.
At this point it is pretty much likely that Sam took customer deposits for lending to “optimize yield” and the entire structure collapse when customers demand withdrawal for six billion dollars a day.
Markets are watching for contagion possibility as the firms are “saying that they have no exposure” to FTX. We will find out.
The incident in my view summaries that crypto is highly risky and only invest what you can lose.
Defi has many major hacks and exploits happening on weekly basis, and if your cold wallets are not of trusted sources you can lose your money. More money are being lost via self custody than on exchange in history, until this week that FTX gets itself in an alleged 8billion hole.
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