 | Disclaimer: This is basically just a repost from a Twitter thread by @/milesdeutscher Source: https://twitter.com/milesdeutscher/status/1589631447517655040 ___________________________________________________________________________________________ For a long time, SBF was idolized in the space. Famous for his:
Sam accrued an impressive estimated net worth of $10-14.5b at his peak. In recent times, FTX has been extremely busy leading huge fundraising rounds for new projects. Aptos and Sui are the two most recent examples. Sam was invincible. Despite Luna causing chaos, he used the situation as leverage to continue an aggressive expansion plan.
However, in the background there were some cracks starting to appear. Eyebrows started to raise when Alameda CEO Sam Trabucco suddenly resigned. https://twitter.com/AlamedaTrabucco/status/1562519118741323778 Additionally, a month later FTX President Brett Harrison stepped down. https://twitter.com/BrettHarrison88/status/1574782901748727809 These resignations occurred just before it was revealed that FTX was facing some legal trouble in the form of a securities regulator probe. SBF has a clear interest in politics, evidenced by his involvement in the upcoming midterm elections, in which he has donated almost $50m. This comes after his plan to donate $1b in the 2024 U.S. presidential election (which he later backtracked on). Clearly Sam has political interests at heart. Although public sentiment was becoming more negative towards Sam, the DCCPA draft bill marked a real turning point for the public's perception. A draft of the bill was first leaked online by @/lex_node
Sam has seemingly been supporting the bill. But despite Sam trying to play the "good guy" on Twitter, there were clear red flags throughout the bill which could pose significant threats to DeFi.
Multiple key industry figures have spoken out against the bill, most notably Bitboy, who is working on his own. Erik Voorhees famously quizzed SBF on his stance during a Bankless interview. This clip linked below (which went viral) led to continued skepticism amongst the crypto community.
The public damage for Sam was immense. Sentiment shifted as people realised his intentions may be different from what was first thought. This shift in sentiment was the precursor for what was to come next, and a major contributor behind the severity of the recent FUD. Concerns started to bubble on Wednesday when Alameda's balance sheet was leaked.
did a great thread breaking down some of the concerns surrounding the balance sheet.
One of the accounts that first called Celsius' collapse published a report titled "Is Alameda Insolvent?" The report labelled Alameda's situation as "precarious to say the least." More rumors started proliferating, and the FUD machine entered full force. Allegations of FTX's insolvency started circulating. Then, we saw a MASSIVE $584m worth of $FTT transferred to Binance. CZ confirmed that is was in fact Binance who executed the transfer. We got full confirmation that Binance was exiting its $FTT position yesterday, when CZ announced his decision "to liquidate any remaining FTT on our books." CZ fired shots at Sam, stating that they were selling as a result of "learning from $LUNA". CZ indirectly referenced SBF's lobbying by claiming that he "won't support people who lobby against other industry players behind their backs." FTX's primary token $FTT dumped as a result, dropping 15% from its weekly highs. However, it has found strong support around the $22 region. Caroline, the CEO of Alameda Research, was forced to issue a response to CZ's sale. In my opinion, this response felt desperate and was somewhat of a red flag. We all know what happened last time someone tried to "steady" the ship. $FTT isn't the only worry though, Alameda holds many more tokens which could be subject to downside pressure if the situation worsens. The FUD surrounding FTX has resulted in staggering outflows, as people rush to withdraw funds. The threat of a "bank run" was looming yesterday as some people were forced to wait 4 hours to process withdrawals. Sam recently issued a response stating that FTX is fine and assets are fine. https://twitter.com/SBF_FTX/status/1589598284322328579 The chances of FTX being insolvent are quite slim, but why take chances in crypto when there's viable alternatives. [link] [comments] |
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