In today’s briefing:
- #40 The Contagion Vectors of the FTX debacle
- Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy
- Crypto Liquidity in a Post-Alameda World
#40 The Contagion Vectors of the FTX debacle
- Time flies in crypto. If you swap “years” for “hours” in this quote from Marvin, the Paranoid Android from The Hitchhiker’s Guide to the Galaxy, you get a glimpse of what crypto has been like in recent weeks.
- “The first ten million years were the worst,” said Marvin, “and the second ten million years, they were the worst too. The third ten million years I didn’t enjoy at all. After that, I went into a bit of a decline.”
- In the last few weeks, FTX has exploded, and somehow it keeps exploding.
Sporting Crypto – Nov 14th: Leading Sports Crypto Sponsor FTX File for Bankruptcy
- FTX blowing up has been seen by many as the most shocking thing to happen in crypto.
- I’ve spoken to people who have been in the space for longer than me (5 years) and there’s consensus that this really is the craziest thing that has happened – in an industry that is already labelled as the ‘digital wild west’.
- But how did FTX, a crypto exchange making 8 figures in trading fees *per day* and a modestly sized team blow up?
Crypto Liquidity in a Post-Alameda World
- The FTX saga keeps entering new levels of strange.
- On Friday, both FTX and FTX US filed for bankruptcy, along with 134 related entities, highlighting just how tangled the exchange’s corporate web had become.
- Just a few hours later, the exchange suffered what now appears to be a massive hack, with more than $600mn siphoned from both FTX and FTX US wallets, instantly triggering rumors of an inside job.
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