FTX collapse in 2022 brings the crypto market with it.
SBF is the CEO of the FTX who claimed he did not know anything.
After the collapse, it raises the question of why FTX collapsed within 8 days and why FTX the second largest crypto exchange, collapsed so suddenly.
Here are my take on why FTX collapsed so quick:
First, it is overleveraged.
SBF likely has a back door access of customers' funds to transfer into his venture capital Alameda which helps him to go Wall Street bets on many different short positions against investors and users.
However, such venture capital could have performed better during the bear market that drags its cash flow run out quick.
Second, SBF prints money too.
He got ideas from the Fed which printed infinity cash during and after the COVID induced financial crisis.
He got an idea that as long as people did not find out, he can use Alameda to balance the cash out through the newly minted crypto FTT and others to create cash out of thin air.
Third, he overleveraged his connections.
He graduated from a prestige university and his parents got connections. He used their trust to create a dilution dream of money making machine that can generate as much cash as possible.
Fouth, he donated money away.
He used donation as a cover up to drift people away from the suspicious Alameda venture capital and cash flow that triggers any suspecious.
Well. There are many other ways SBF did to get away with the crime.
What do you think?
Photo by Dainis Graveris on Unsplash
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Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.
