Bitcoin

[AsUpRoDiGy]

The FTX collapse is nothing short of remarkable. Over the course of 24 hours it went from a valuation of $8B all the way to $1. BTC responded by dropping 20%. Ouch.

 

[jf-08]

The FTX collapse is nothing short of remarkable. Over the course of 24 hours it went from a valuation of $8B all the way to $1. BTC responded by dropping 20%. Ouch.

In layman's terms can anyone explained how this happened or why it happened?

 

[Russ Smith]

In layman's terms can anyone explained how this happened or why it happened?

Just watched something on it apparently CoinDesk wrote an article where they pointed out that FTX had all their transactions backed by a coin that was invented by a company owned by the CEO of FTX. So there were concerns the books were not accurate and when the story broke it led to a run on the bank with people withdrawing from BTX. Then a rival came in with a bid to rescue BTX, but unlike Elon Musk they actually asked to do some due diligence and after seeing the books walked away. that led to an even bigger run on it and FTX basically collapsed



"Documents uncovered last week by CoinDesk showed that Alameda Research – a trading and investment juggernaut founded by SBF – had its finances deeply intertwined with those of FTX.
FTX was supposed to be a separate company from Alameda, but Alameda apparently held a disproportionate amount of its balance sheet in FTX’s exchange token, FTT. That token was illiquid, with Alameda and FTX owning a vast majority of all of the tokens in circulation. Selling them would have meant crashing the price of FTT, meaning their value on Alameda’s balance sheet was likely overstated."

Why Is Crypto Tanking: The FTX-Binance Drama Explained

The world’s largest crypto exchange, Binance reversed course on a plan to bail out competitor FTX in an event that has shocked the crypto industry and is catching the attention of regulators.

www.coindesk.com

We were watching this show on youtube about this couple on vacation in Boracay in Philippines and they were trying to do all their transactions on Bitcoin. As the day went on they were complaining about how "mahal"(expensive) everything is in Boracay. Because they hadn't seen the news yet and had no idea that Bitcoin was literally crashing as they were spending so the prices weren't higher than usual it was just that their pot of "money" had shrunk like 25%. At the end of the video in the comments they acknowledged they had not known what happened.

 

[Russ Smith]

Wow Reuters and WSJ both reporting 1-2 BILLION dollars is missing of customer money and they think the CEO transferred it from one company to another before filing for BK.

Dude is going from a billionaire to a felon.

 

[Russ Smith]

Wow Reuters and WSJ both reporting 1-2 BILLION dollars is missing of customer money and they think the CEO transferred it from one company to another before filing for BK.

Dude is going from a billionaire to a felon.

So it sounds like people who have money in that exchange have been withdrawing money via some loophole that allowed a backdoor in the Bahamas. So even though the company filed for BK and is frozen, some users are still getting their money out. The story I read said they're doing some "exchanges" where they're for example selling an NFT they bought for 20 bucks, for 10 million. A bunch of Bahamians are doing the exchanges so it appears the "missing money" went to the Bahamas and he's paying people out. Not clear yet if it's illegal or not it appears it probably violates the BK conditions

 

[elindholm]

Wow Reuters and WSJ both reporting 1-2 BILLION dollars is missing of customer money and they think the CEO transferred it from one company to another before filing for BK.

Dude is going from a billionaire to a felon.

Or both, it sounds like.

 

[dscher]

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[dscher]

....Trust the system.


It has your back.

 

[dscher]

In layman's terms can anyone explained how this happened or why it happened?

One word. Ponzi.

 

[dscher]

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[BigRedRage]

Thank God I never got past just owning primary coins through normal exchange sites lol

 

[dreamcastrocks]

Thank God I never got past just owning primary coins through normal exchange sites lol

I am mad I wasn't convinced to buy bitcoin when it was $0.40 like a buddy of mine did.

 

[BigRedRage]

I am mad I wasn't convinced to buy bitcoin when it was $0.40 like a buddy of mine did.

I blew it off for a very long time

 

[dscher]

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[Folster]

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[dscher]

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They're the next FTX shoe to drop for the crypto space.

 

[Folster]

They're the next FTX shoe to drop for the crypto space.

Binance, then Tether. Crypto should be pretty much done after that, but it's last much longer than I ever thought so who knows.

 

[dscher]

Binance, then Tether. Crypto should be pretty much done after that, but it's last much longer than I ever thought so who knows.

If you aren't backed by the good faith of the central banking cartel, I mean system, then you were done before you even started. It was a good ponzi though. Has sucked plenty of dumb money into it. Just have to hope for no contagion into the stock market and the tech space.

 

[Folster]

If you aren't backed by the good faith of the central banking cartel, I mean system, then you were done before you even started. It was a good ponzi though. Has sucked plenty of dumb money into it. Just have to hope for no contagion into the stock market and the tech space.

The US would go to war to protect the dollar and it's control of monetary policy. I'm not sure why anyone would want to throw in financially to challenge US monetary policy.

Investors always say don't fight the Fed when they are easing or tightening, but that also means don't literally fight the Fed.

 

[dscher]

Investors always say don't fight the Fed when they are easing or tightening, but that also means don't literally fight the Fed

Easing most definitely. That's all they've known. Tightening is where we are seeing the struggle ATM. A lot of cognitive dissonance will be occuring now and in the future IMO.

 

[Folster]

Wow! Back to back take downs by the SEC.

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[Dback Jon]

Good! Take them all down

 

[puckhead]

I'm regularly finding myself amazed by the things I read about this stuff.

...

Riot received an estimated $24.2 million in power curtailment credits under its contract with ERCOT and $7.4 million from ERCOT’s demand response program.

Riot made more from energy credits in August than it did from actual bitcoin mining.

The company has plans to build another facility in Corsicana, with 1GW of capacity approved by ERCOT.

...

Texas paid a bitcoin miner more than $31 million to power down during heat wave

The Electric Reliability Council of Texas paid the bitcoin miner Riot $31.7 million in energy credits in August to not mine bitcoin in order to save energy for the state's power grid.

www.tpr.org

 

[Dback Jon]

I'm regularly finding myself amazed by the things I read about this stuff.

Texas paid a bitcoin miner more than $31 million to power down during heat wave

The Electric Reliability Council of Texas paid the bitcoin miner Riot $31.7 million in energy credits in August to not mine bitcoin in order to save energy for the state's power grid.

www.tpr.org

Quite the scam

 

[dscher]

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