FTX Goes Bankrupt
I will accompany a podcast with this article over the weekend but felt it necessary to give you guys an update on what is happening. FTX ( the second (I think)) largest crypto exchange in the world was a total scam. They used customer funds as their own cookie jar and invested that money in various assets including illiquid shit coins. That money is now gone. They have paused all withdraws which means anyone who had money on that exchange is likely going to lose it. Luckily ( for us) FTX.US ( the US entity) is operating OK for now. Did Gary Gensler actually protect us?
IF YOU HAVE MONEY ON FTX.US OR ANY OTHER CENTRALIZED EXCHANGE GET THAT MONEY OFF THE EXCHANGE NOW!.
I can’t stress this enough. If you do not control the private keys to your crypto than you do not really own it. We have said this since day one. Get your money off any centralized entity right now. The contagion from this is going to be widespread. We do not know who is currently insolvent but there will be many. This is the LUNA collapse all over again but way bigger. FTX.US lent BlockFi money a few months ago after the LUNA collapse so they could survive. That money is now questionable so BlockFi is now likely insolvent. They have paused withdraws. Jump trading has been quiet for 4 days now. They are buddy/buddy with FTX. Read between the lines. They are a massive entity in crypto.
Not even Coinbase is safe. We do not know who lent FTX/Alameda money but Sam Bankman-Fried was the poster child for crypto so it is safe to say if Sam came knocking, many people most likely would have handed him any amount of money he asked. This is going to set back crypto for a few years. The regulation that will come down as a result of this is going to be a bad thing. Ultimately, crypto did not fail, a shadowy centralized entity akin to a normal bank failed. But people will want a scapegoat and they will blame crypto.
If you have any money in Sol or any other Solana ecosystem tokens I recommend selling them immediately . We do not know which projects kept their treasuries on FTX ( quite a few ) and thus lost all of their money. Solana itself is on shaky ground. FTX and SBF were the main backers for the Solana ecosystem. Will they survive without those deep pockets?
Sam Bankman Fried is the worst of the worst. He took users money and blew it on political contributions and shitcoins. He deserves to go to jail for the rest of his life the same way Madoff did.
GET ALL MONEY OFF ANY CENTRALIZED ENTITY RIGHT NOW.
That is all for today. The next few days/ weeks will be very volatile. There are multiple zombie companies who just lost all/part of their money and are insolvent. They will lie straight to the public and say everything is fine up to the last second. Trust no one. Get your money into a hard wallet or withdraw dollars to your bank account.