1 year ago
The “crypto feud” betwixt Changpeng ‘ Zhao (CZ) and Sam Bankman-Fried (SBF) took a crook for the worse connected Nov. 8 — culminating successful the biggest bull trap successful caller memory.
Since Nov, 6, erstwhile CZ tweeted Binance’s intentions to offload its holdings of FTT tokens, $152.6 billion has near the crypto marketplace resulting successful immense drawdowns successful token prices.
The tweet raised questions astir FTX’s solvency, which, fixed its lasting and willingness to prevention Terra LUNA bankrupted CeFi platforms, presented a somewhat implausible scenario.
UpOnly TV big Cobie commented that the velocity astatine which the concern developed caught retired galore “long-term and astute crypto ppl” who were nary the wiser regarding what was happening down the scenes astatine FTX.
“In my decennary of crypto, deliberation this speech rug is by acold the worst ever. Almost nary clip to respond and tons of semipermanent and astute crypto ppl impacted by it.“
Scale of FTX blackhole chartless astatine this time
On Nov. 8, CZ tweeted that FTX had reached retired to Binance for assistance and a non-binding statement was made to bargain the company, taxable to satisfactory owed diligence.
This afternoon, FTX asked for our help. There is simply a important liquidity crunch. To support users, we signed a non-binding LOI, intending to afloat get https://t.co/BGtFlCmLXB and assistance screen the liquidity crunch. We volition beryllium conducting a afloat DD successful the coming days.
— CZ 
Binance (@cz_binance) November 8, 2022
Before that point, SBF had publically maintained everything was fine. Although on-chain information showed a “bank run” connected holdings, galore assumed FTX was sufficiently liquid.
According to Wall Street Journal newsman Liz Hoffman, earlier the statement with Binance was struck, SBF was asking Silicon Valley and Wall Street billionaires for help.
This a.m. earlier securing an exigency lifeline from rival Binance, FTX was canvassing heavy pockets successful Silicon Valley and Wall St — deliberation billionaires, not institutions — ppl acquainted told maine & @lmatsakis @SaacksAttack. Two of the ppl helium he was seeking much than $1bn.
— Liz Hoffman (@lizrhoffman) November 8, 2022
Currently, different than wide comments connected insolvency and irresponsible concern strategies, the afloat details of FTX’s woes are not known.
Coinbase CEO Brian Armstrong, erstwhile asked if his speech would bargain FTX, said:
“There [are] reasons wherefore that would not marque sense.”
Armstrong added:
“[I am] not rather astatine liberty to stock the details close now.”
Biggest losers
Over the past 24 hours, retired of the apical 100, FTX’s autochthonal FTT token fared the worst, down 74% to bottommost astatine $2.76. In comparison, FTT started the time astatine $22.23.
Next, Solana mislaid 35% of its worth implicit the aforesaid period. Support was recovered astatine $17.56 successful the greeting (GMT) of Nov. 9.
Twitter idiosyncratic @immortalcrypto commented that merchantability unit was coming from FTX’s concern limb Alameda offloading its Solana holdings to support the FTT price.
Alameda selling $SOL to bargain $FTT due to the fact that CZ is selling $FTT to bargain $BNB.
If adjacent bullmarket idiosyncratic calls maine fortunate I'm going to chopped his lingua out.
— Inmortal (@inmortalcrypto) November 8, 2022
Aptos fell 30% implicit the past 24 hours to bottommost astatine $4.34 earlier this morning. APT launched connected Oct. 19 and was instantly criticized for its mediocre scalability connected launch, token organisation favoring VCs, and ties to Meta.
In July, the task raised $150 million successful a bid A backing circular led by FTX Ventures, with Andreessen Horowitz, Multicoin Capital, and Circle Ventures participating.
The station Biggest losers: FTT, SOL, APT vessel implicit FTX insolvency woes appeared archetypal connected CryptoSlate.
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