11-08-2022, 08:16 PM
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#1
- gwg77
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Sam Bankman-Fried Wiped Out in Days (FTX)
How it started:How it started:
How it's going:How it's going:
How it's going:How it's going:
Just weeks ago, Sam Bankman-Fried was considered crypto’s version of John Pierpont Morgan, willing to throw around his massive fortune to save the industry.
The curly-haired 30-year-old known as SBF was everywhere, backing flailing projects including BlockFi, Voyager Digital and Celsius. From the Bahamas, he invested in Robinhood Markets Inc., raising speculation that he’d take over the trading app. And why not? Just last year he said that once his FTX was big enough, it could swallow CME Group Inc. or Goldman Sachs Group Inc.
And he looked poised to leverage his fortune — $26 billion at its peak — to shape the world, donating millions to Democrats and promising that one day he’d give it all away to political causes and charity.
Now, the future of all of it is in doubt.
In the span of days, it became clear that Bankman-Fried and FTX were in the midst of a liquidity crunch and needed a bailout of their own. Changpeng Zhao’s Binance swept in to take over, and, while exact terms weren’t disclosed, it’s likely that SBF’s $15.6 billion fortune will be annihilated at the hands of his billionaire rival.
That might come as a shock to investors including Softbank Vision Fund, Singapore wealth fund Temasek and Ontario Teachers’ Pension Plan, who sunk $400 million into the exchange at a $32 billion valuation in January. But it also put the broader crypto industry on notice: If SBF isn’t safe, who is?
Record Wipeout
Bankman-Fried’s 53% stake in FTX was worth about $6.2 billion before Tuesday’s takeover, according to the Bloomberg Billionaires Index, based on that fundraising round and the subsequent performance of publicly traded crypto companies.
FTX wasn’t Bankman-Fried’s most valuable asset, though. That was his crypto trading house, Alameda Research, which contributed $7.4 billion to his personal fortune.
The Bloomberg wealth index assumes existing FTX investors, including Bankman-Fried, will be completely wiped out by Binance’s bailout, and that the root of the exchange’s problems stemmed from Alameda. As a result, both FTX and Alameda are given a $1 value.
That leaves SBF’s net worth at about $1 billion, down from $15.6 billion heading into Tuesday. The 94% loss is the biggest one-day collapse ever among billionaires tracked by Bloomberg.
Alameda was founded by Bankman-Fried, formerly a trader at Jane Street, and Gary Wang, an engineer who’d previously worked at Google. They found a niche: arbitraging pricing differences in cryptocurrencies in different countries, and soon expanded into a range of quantitative crypto trading strategies.
It seemed highly profitable. Bloomberg in September reported the firm made about $1 billion in 2021. But questions remained about how FTX and Alameda interacted with each other.
https://www.bloomberg.com/news/artic...set-to-buy-ftxThe curly-haired 30-year-old known as SBF was everywhere, backing flailing projects including BlockFi, Voyager Digital and Celsius. From the Bahamas, he invested in Robinhood Markets Inc., raising speculation that he’d take over the trading app. And why not? Just last year he said that once his FTX was big enough, it could swallow CME Group Inc. or Goldman Sachs Group Inc.
And he looked poised to leverage his fortune — $26 billion at its peak — to shape the world, donating millions to Democrats and promising that one day he’d give it all away to political causes and charity.
Now, the future of all of it is in doubt.
In the span of days, it became clear that Bankman-Fried and FTX were in the midst of a liquidity crunch and needed a bailout of their own. Changpeng Zhao’s Binance swept in to take over, and, while exact terms weren’t disclosed, it’s likely that SBF’s $15.6 billion fortune will be annihilated at the hands of his billionaire rival.
That might come as a shock to investors including Softbank Vision Fund, Singapore wealth fund Temasek and Ontario Teachers’ Pension Plan, who sunk $400 million into the exchange at a $32 billion valuation in January. But it also put the broader crypto industry on notice: If SBF isn’t safe, who is?
Record Wipeout
Bankman-Fried’s 53% stake in FTX was worth about $6.2 billion before Tuesday’s takeover, according to the Bloomberg Billionaires Index, based on that fundraising round and the subsequent performance of publicly traded crypto companies.
FTX wasn’t Bankman-Fried’s most valuable asset, though. That was his crypto trading house, Alameda Research, which contributed $7.4 billion to his personal fortune.
The Bloomberg wealth index assumes existing FTX investors, including Bankman-Fried, will be completely wiped out by Binance’s bailout, and that the root of the exchange’s problems stemmed from Alameda. As a result, both FTX and Alameda are given a $1 value.
That leaves SBF’s net worth at about $1 billion, down from $15.6 billion heading into Tuesday. The 94% loss is the biggest one-day collapse ever among billionaires tracked by Bloomberg.
Alameda was founded by Bankman-Fried, formerly a trader at Jane Street, and Gary Wang, an engineer who’d previously worked at Google. They found a niche: arbitraging pricing differences in cryptocurrencies in different countries, and soon expanded into a range of quantitative crypto trading strategies.
It seemed highly profitable. Bloomberg in September reported the firm made about $1 billion in 2021. But questions remained about how FTX and Alameda interacted with each other.
11-08-2022, 08:17 PM
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#2
- ninetynine8
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- ninetynine8
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Jew loses to the Golden Bull once again
11-08-2022, 08:19 PM
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#3
- headturner1
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- headturner1
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He’s still in the tres commas club
11-08-2022, 08:24 PM
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#4
- OliverHeldens
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Dude needs to buy about $200M in Real Estate, just to make sure he has something left when he blows the rest of his cash.
This is a crazy story though. He was basically "printing crypto" like the Federal Reserve, but from the Bahamas. I'm sure once his competitors figured out what he was doing, they engineered this liquidity crisis.
This is a crazy story though. He was basically "printing crypto" like the Federal Reserve, but from the Bahamas. I'm sure once his competitors figured out what he was doing, they engineered this liquidity crisis.
11-09-2022, 07:18 AM
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#5
11-09-2022, 07:22 AM
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#6
- OffwhiteBrah
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CZ rugpulled FTX and then performed a so called hostile takeover. Wow!
11-09-2022, 07:46 AM
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#7
- gwg77
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Originally Posted By OffwhiteBrah⏩
Absolutely brutal. And then SBF had to call him for a bailout.CZ rugpulled FTX and then performed a so called hostile takeover. Wow!
And then he rubbed it in:
CZ just posted this minutes ago:
11-09-2022, 07:47 AM
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#8
- Unstumpable
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- Unstumpable
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Imagine having a name like bankman-fried
11-09-2022, 08:21 AM
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#9
- TheGoldenBull
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- TheGoldenBull
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11-09-2022, 08:22 AM
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#10
- TheGoldenBull
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- TheGoldenBull
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11-09-2022, 08:24 AM
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#11
Originally Posted By Unstumpable⏩
I would open a chicken restaurant. Ded fkn srsImagine having a name like bankman-fried
2 time survivor of The Great Misc Outages of 2022
Survivor of PHP/API Outage of Feb 2023
11-09-2022, 08:24 AM
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#12
- GeicoGecko
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- GeicoGecko
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In just 15 mins, you could lose 15% or more of your net worth in crypto.
11-09-2022, 08:27 AM
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#13
- headturner1
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- headturner1
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Originally Posted By GeicoGecko⏩
That goes for most speculative assets, but yes, especially for cryptoIn just 15 mins, you could lose 15% or more of your net worth in crypto.
11-09-2022, 08:37 AM
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#14
- notbadnotbrad
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Lmao good
11-09-2022, 08:39 AM
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#15
11-09-2022, 08:40 AM
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#16
- TomWanks
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- TomWanks
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It sounds like this was some merchant-tier horsechit so I'm glad he went bankrupt.
BRB they "leveraged pricing differences for different cryptos in different countries," so it sounds like they created a derivatives FOREX market whereby they could buy BTC for $X and sell it for 1.1X Euro and this is how they made their money.
That delivers no value to the consumer is a purely extractive. It removes capital from capital markets and deposits it into the pocket of the merchant.
BRB they "leveraged pricing differences for different cryptos in different countries," so it sounds like they created a derivatives FOREX market whereby they could buy BTC for $X and sell it for 1.1X Euro and this is how they made their money.
That delivers no value to the consumer is a purely extractive. It removes capital from capital markets and deposits it into the pocket of the merchant.
11-09-2022, 10:32 AM
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#17
11-09-2022, 10:48 AM
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#18
11-09-2022, 02:33 PM
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#19
11-09-2022, 04:31 PM
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#20
11-09-2022, 04:39 PM
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#21
- DeadlyStriker
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- DeadlyStriker
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Weird how my physical gold and silver just doesn't disappear like that.
11-09-2022, 04:43 PM
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#22
- FAPhaggot
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- FAPhaggot
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Originally Posted By TomWanks⏩
Exactly. Rent-seeking behavior.It sounds like this was some merchant-tier horsechit so I'm glad he went bankrupt.
BRB they "leveraged pricing differences for different cryptos in different countries," so it sounds like they created a derivatives FOREX market whereby they could buy BTC for $X and sell it for 1.1X Euro and this is how they made their money.
That delivers no value to the consumer is a purely extractive. It removes capital from capital markets and deposits it into the pocket of the merchant.
BRB they "leveraged pricing differences for different cryptos in different countries," so it sounds like they created a derivatives FOREX market whereby they could buy BTC for $X and sell it for 1.1X Euro and this is how they made their money.
That delivers no value to the consumer is a purely extractive. It removes capital from capital markets and deposits it into the pocket of the merchant.
FA Crew
Always Pick 1 Crew
"Experience is something you get right after you need it."
11-09-2022, 04:44 PM
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#23
- BraneyGumble
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- BraneyGumble
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investors including Softbank Vision Fund, Singapore wealth fund Temasek andOntario Teachers’ Pension Plan, who sunk $400 million
Now that's joocy.
11-09-2022, 04:51 PM
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#24
- ChewYourFood
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- ChewYourFood
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Originally Posted By gwg77⏩
Has he roped yet.
11-09-2022, 05:07 PM
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#25
- Serenadium
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- Serenadium
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lmfao at the comments ITT.
Alameda (sister hedge fund of FTX - the cryptocurrency exchange platform) went broke because:
1. It collaterized the FTX token (FTT) which is relatively illiquid. Binance has a chunk of FTT from the FTX strategic sale round threatened to dump $500m worth on the open market causing a price plummet. This means there are margin calls on the collaterized FTT.
2. FTX fraudulently lent customer deposits on their trading exchange to Alameda for further money making purposes (i.e. market making, lending, investing, speculating, exorbitant spending (i.e. stadium deals)) etc.
Alameda is up to $6b in the hole, so all the funds they absconded from FTX by Alameda is gone. Cucks that only know how to centralized exchanges will be blown the **** out now and for all time.
Alameda (sister hedge fund of FTX - the cryptocurrency exchange platform) went broke because:
1. It collaterized the FTX token (FTT) which is relatively illiquid. Binance has a chunk of FTT from the FTX strategic sale round threatened to dump $500m worth on the open market causing a price plummet. This means there are margin calls on the collaterized FTT.
2. FTX fraudulently lent customer deposits on their trading exchange to Alameda for further money making purposes (i.e. market making, lending, investing, speculating, exorbitant spending (i.e. stadium deals)) etc.
Alameda is up to $6b in the hole, so all the funds they absconded from FTX by Alameda is gone. Cucks that only know how to centralized exchanges will be blown the **** out now and for all time.
11-09-2022, 05:18 PM
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#26
- orangetide
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- orangetide
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Saw something on snapchat about him and FTX. Never heard about him prior. He seemed really nervous, now I see why.
11-09-2022, 05:30 PM
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#27
- MustardTiger17
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No idea what any of this means
Not in the AM
11-09-2022, 05:33 PM
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#28
- Evolutionary1
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- Evolutionary1
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surely this will end well
11-09-2022, 05:46 PM
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#29
- ninetynine8
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- ninetynine8
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Originally Posted By Serenadium⏩
these boomers literally think crypto = centralized exchange lollmfao at the comments ITT.
Alameda (sister hedge fund of FTX - the cryptocurrency exchange platform) went broke because:
1. It collaterized the FTX token (FTT) which is relatively illiquid. Binance has a chunk of FTT from the FTX strategic sale round threatened to dump $500m worth on the open market causing a price plummet. This means there are margin calls on the collaterized FTT.
2. FTX fraudulently lent customer deposits on their trading exchange to Alameda for further money making purposes (i.e. market making, lending, investing, speculating, exorbitant spending (i.e. stadium deals)) etc.
Alameda is up to $6b in the hole, so all the funds they absconded from FTX by Alameda is gone. Cucks that only know how to centralized exchanges will be blown the **** out now and for all time.
Alameda (sister hedge fund of FTX - the cryptocurrency exchange platform) went broke because:
1. It collaterized the FTX token (FTT) which is relatively illiquid. Binance has a chunk of FTT from the FTX strategic sale round threatened to dump $500m worth on the open market causing a price plummet. This means there are margin calls on the collaterized FTT.
2. FTX fraudulently lent customer deposits on their trading exchange to Alameda for further money making purposes (i.e. market making, lending, investing, speculating, exorbitant spending (i.e. stadium deals)) etc.
Alameda is up to $6b in the hole, so all the funds they absconded from FTX by Alameda is gone. Cucks that only know how to centralized exchanges will be blown the **** out now and for all time.
when the truckers were getting bitcoin confiscated from central exchanges they were saying bitcoin isn't secure
pretty lulzy
11-09-2022, 06:02 PM
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#30
- Bluestar92
- Lettuce be reality
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- Bluestar92
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Funds are SAFU
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