#BreakingNews #Sam Bankman-Fried's Downfall Sends Shockwaves Through Crypto AP
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- Published: 14 November 2022 14 November 2022
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NEW YORK (AP) — Sam Bankman-Fried received numerous plaudits as he rapidly achieved superstar status as the head of cryptocurrency exchange FTX: the savior of crypto, the newest force in Democratic politics and potentially the world’s first trillionaire.
Now the comments about the 30-year-old Bankman-Fried aren’t so kind after FTX filed for bankruptcy protection Friday, leaving his investors and customers feeling duped and many others in the crypto world fearing the repercussions. Bankman-Fried himself could face civil or criminal charges.
“Sam what have you done?,” tweeted Sean Ryan Evans, host of the cryptocurrency podcast Bankless, after the bankruptcy filing.
Under Bankman-Fried, FTX quickly grew to be the third-largest exchange by volume. The stunning collapse of this nascent empire has sent tsunami-like waves through the cryptocurrency industry, which has seen a fair share of volatility and turmoil this year, including a sharp decline in price for bitcoin and other digital assets. For some, the events are reminiscent of the domino-like failures of Wall Street firms during the 2008 financial crisis, particularly now that supposedly healthy firms like FTX are failing.
One venture capital fund wrote down investments in FTX worth over $200 million. The cryptocurrency lender BlockFi paused client withdrawals Friday after FTX sought bankruptcy protection. The Singapore-based exchange Crypto.com saw withdrawals increase this weekend for internal reasons but some of the action could be attributed to raw nerves from FTX.
Bankman-Fried and his company are under investigation by the Department of Justice and the Securities and Exchange Commission. The investigations likely center on the possibility that the firm may have used customers’ deposits to fund bets at Bankman-Fried’s hedge fund, Alameda Research, a violation of U.S. securities law.
“This is the direct result of a rogue actor breaking every single basic rule of fiscal responsibility,” said Patrick Hillman, chief strategy officer at Binance, FTX’s biggest competitor. Early last week Binance appeared ready to step in to bail out FTX, but backed away after a review of FTX’s books.
The ultimate impact of FTX’s bankruptcy is uncertain, but its failure will likely result in the destruction of billions of dollars of wealth and even more skepticism for cryptocurrencies at a time when the industry could use a vote of confidence.
“I care because it’s retail investors who suffer the most, and because too many people still wrongly associate bitcoin with the scammy ‘crypto’ space,” said Cory Klippsten, CEO of Swan Bitcoin, who for months raised concerns about FTX’s business model. Klippsten is publicly enthusiastic about bitcoin but has long had deep skepticism about other parts of the crypto universe.
Bankman-Fried founded FTX in 2019, and it grew rapidly — it was recently valued at $32 billion. The son of Stanford University professors, who was known to play the video game “League of Legends” during meetings, Bankman-Fried attracted investments from the highest echelons of Silicon Valley.
Sequoia Capital, which invested in Apple, Cisco, Google, Airbnb and YouTube, described their meeting with Bankman-Fried as likely “talking to the world’s first trillionaire.” Sequoia enthusiastically invested in FTX after one Zoom meeting in 2021.
“I don’t know how I know, I just do. SBF is a winner,” Sequoia Capital’s Adam Fisher, wrote in a profile of Bankman-Fried for the firm, referring to Bankman-Fried by his popular online moniker. The article, published in late September, was removed from Sequoia’s website.
Sequoia has written down its $213 million in investments to zero. A pension fund in Ontario, Canada wrote down its investment to zero as well.
In a terse statement, the Ontario Teachers’ Pension Fund said, “Naturally, not all of the investments in this early-stage asset class perform to expectations.”
But up until last week, Bankman-Fried was seen as a white knight for the industry. Whenever the crypto industry had one of its crises, Bankman-Fried was the person likely to fly in with a rescue plan. When online trading platform Robinhood was in financial straits earlier this year — collateral damage from the decline in stock and crypto prices — Bankman-Fried jumped in to buy a stake in the company as a sign of support.
When Bankman-Fried bought up the assets of bankrupt crypto firm Voyager Digital for $1.4 billion this summer, it brought a sense of relief to Voyager account holders, whose assets has been frozen since its own failure. That rescue is now in question.
As king of crypto, his influence was starting to pour into political and popular culture. FTX bought prominent sports sponsorships with Formula Racing and bought the naming rights to an arena in Miami. He pledged to donate $1 billion toward Democrats this election cycle — his actual donations were in the tens of millions — and prominent politicians like Bill Clinton were invited to speak at FTX conferences. Football star Tom Brady invested in FTX.
Bankman-Fried had been the subject of some criticism before FTX collapsed. While he largely operated FTX out of U.S. jurisdiction from his headquarters in The Bahamas, Bankman-Fried was increasingly vocal about the need for more regulation of the cryptocurrency industry. Many supporters of crypto oppose government oversight. Now, FTX's collapse may have helped make the case for stricter regulation.
One of those critics was Binance founder and CEO Changpeng Zhao. The feud between the two billionaires spilled out onto Twitter, where Zhao and Bankman-Fried collectively commanded millions of followers. Zhao helped kickstart the withdrawals that doomed FTX when he said Binance would sell its holdings in FTX's crypto token FTT.
“What a s(asterisk)(asterisk)t show ... and it’s going to be crypto’s fault (instead of one guys’s fault,” Zhao wrote on Twitter on Saturday.
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#BreakingNews #Checkout The #Financial #ETF #XLF #Interestrates #Up #Financials #Up!
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- Published: 13 November 2022 13 November 2022
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Hey Readers, John T., Editor In Chief of
the Altcoingazette.com here. How are you this
fine day?, I hope all is well with you this
Great Day!
Take a look at the S&P 500 Financial Sector
SPDR ETF XLF. Here is a Barchart link for your review:
https://www.barchart.com/etfs-funds/quotes/XLF/opinion
Notice how last month XLF was a -72% Red SELL and is
now shifted to a +24% Green BUY! Shift happens!
I have been probing this sector recently with some small
purchases of XLF. Reason, as interest rates go up, financials
earn greater profits, thus said profits drive up stock prices?
I like being early in the econometric cycle and adding to
winning trades as they pump, thus the Trend Green Shift is
my Friend! Here is a ETF Constituents list of stock \ stonk shares held
by percentage in XLF ETF! Notice the Bullish Pivot Point Breakout in most of these shares!
Jessie Livermore: "Whenever I had the patients to wait for
the Pivot Point, I always made money in my operations".
Not Investment Advice Ever...Opinion Only!
#BreakingNews #Altcoingazette #Offers #Perspective on #Recent #News in #Cryptocurrency #Market #Bitcoin #BTCUSD
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- Published: 13 November 2022 13 November 2022
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Dateline: 11/12/2022:
Hey Readers, John T., Editor In Chief of
the Altcoingazette.com here. How are you this
fine day?, I hope all is well with you this
Great Day!
Ok, so the cryptocurrency market is digesting the FTX
blowup, sorry for all of those that got wiped out on FTX,
it wasn't your fault, ever! FTX, is not the first crypto exchange
to bankrupt and it won't be the last! It seems that retail,
always gets spanked.
This is the same behavior that transpired on MF Global, just
a few years ago, and also on the crypto exchange, Celsius Network,
then the regulators step in.
Our perspective, even though this hurts to say, these "Blow Ups"
are good for cryptocurrency, in that, don't put your faith in: Individuals,
exchanges, or regulators for that matter. Jessie Livermore quoted: History will always repeat, over and over again. Mark Twain, History doesn't always repeat, however does often rhyme.
Several other exchanges have bankrupted, FTX won't be the last. Warren Buffett quoted: Stock Market crashes lets everyone see, when the tide goes out, who is swimming without a bathing suit"! Who ever is now is skinny dipping, in the cryptocurrency market, the "Tide has gone out", for now...it won't last!
Bitcoin BTCUSD has had 4 times in it's trading history, that it pulled a -85%
price dip, only to recover again, to "New" record All Time High prices! In November of 2021, Bitcoin BTCUSD pumped to a record approx. $70,000,
now the dippy dip to $16.8K. So, again, I know that my math sucks, Bitcoin BTCUSD $70K -85% = approx. Bitcoin BTCUSD $10K! This has transpired 4
times in Bitcoin BTCUSD history, no Mark Twain is not a financial advisor, either is the Altcoingazette.com! We are rather close to the next -85% Bitcoin BTCUSD dippy dip? Time will tell. Privately, I would like to see Bitcoin BTCUSD, plunge to the Q1 2020 dippy dip of Bitcoin BTCUSD $3,500ish, only in my dreams, Readers!
So here is the price action that I see in the future for Bitcoin BTCUSD: -100% Sell Trend in Bitcoin BTCUSD, as it is as of this post. Old saying in the stock\stonk market: "Cheap stocks get cheaper and the Trend is your Friend"!
Let Bitcoin BTCUSD tell you what "it" wants to do, because the Trend is your friend. As I listen to Bitcoin BTCUSD, it is telling me that it wants to go lower, because of it's Trend indicator link listed here on Barchart for your review:
https://www.barchart.com
/crypto/quotes/%5EBTCUSD/opinion
Suckers Rally, Dead Cat Bounce or the Bear Market Rally: All of these recent pumps in Bitcoin BTCUSD are "Counter Trend" Suckers Rally, Dead Cat Bounce or the Bear Market Rally etc. You always here people say, "The way you get Rich is by Buying the Dip"! This is Bullshit from my perspective.
So what is the plan Stan: Grasshopper, "The way that you get rich is "Not" trying to "Time" a market, stock, bonds, forex or now crypto. The way to get rich in Bitcoin BTCUSD, is if you are currently out of the Bitcoin BTCUSD market, is to stay out, "Until" the Trend Reversal! Here is the suckers trade in Bitcoin BTCUSD, you Buy the dip, and then you Buy the dip...and then you become a dip! Currently, the Bears are in control of the Bitcoin BTCUSD market.
Survey question: "When does the Bitcoin BTCUSD market Trend change from Bearish to Bullish"? Answer, I have now idea and don't care.
Next Survey question: "At what price will the Bitcoin BTCUSD market change from Bearish to Bullish"? Same answer, I have now idea and don't care!
So again, this is what I do know, 1.the bears are in control of the Bitcoin BTCUSD market, (For Now), 2. Jessie Livermore quoted: "The Trend is my friend and always trade in the direction of the Trend", whenever I had the patients to wait for the Pivot Point, I always made money in my operations".
Ok, so this is my trading plan: I currently own a very small position in Bitcoin BTCUSD and will slowly begin to purchase a very small amount of additional Bitcoin BTCUSD as a "probe" of the Bitcoin BTCUSD market. Jessie Livermore quoted" "You won't know a market, until you are in it". I am in the Bitcoin BTCUSD market and have been so, since December of 2019. My lowest purchase of Bitcoin BTCUSD was $5,500ish during the 2020 Q1 covid dip and then I purchased \ chased Bitcoin BTCUSD all the way up, with purchases all the way up to approx. $70K BTCUSD, I may hold the world record in the Greatest number of swing points in Bitcoin BTCUSD. In November of 2021, I was up a conservative +500K to +750K swing trading points in Bitcoin BTCUSD only to give all of those points back, whew! No margin either! Full swing in Bitcoin BTCUSD = a conservative 1 to 1.5 million points, full turn!
Bottom line: I purchase a small amount of Bitcoin BTCUSD on Coinbase, now every week, until this Trend indicator Pivot Point "Green" Buy! https://www.barchart.com/
crypto/quotes/%5EBTCUSD/opinion
Grasshopper: "When it tells you that it (Bitcoin BTCUSD) wants to be purchased and goes Green Buy, then you Buy the dip in the "direction" of the new Bullish Trend, thus you are trading \ speculating in the "Direction" of the Trend"! Readers, just sit tight and watch what happens when this Barchart goes Green\ Buy Trend, pay up for your Bitcoin BTCUSD and then continue to add to your winning trade position\s!
If you follow \ read the Altcoingazette.com, you will not miss the Bullish Green Trend reversal in Bitcoin BTCUSD! In stead of saying: "Stay thirsty my friend, more like "Pay Up" my friend and then "Pay Up" again and again...because the Trend is your Friend"! Add to your winners only!
Trend, Trend, Trend = Friend, Friend, Friend!
Not Investment Advice Ever...Opinion Only!
#BreakingNews #Checkout this #Hot #New #eBook that I #Published on #Kindle HOW I SELECT #GOLDSTOCKS TO #INVEST AND #SPECULATE IN, FOR MAXIMUM RETURN: SIMPLE SUPER #HYPERINFLATION #FORMULA https://www.amazon.com/dp/B09T2HQMG7
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- Published: 13 November 2022 13 November 2022
- Hits: 163 163
Hey Readers of the Altcoingazette.com, several months ago, I published this
Hot New eBook on Amazon's Kindle, in reference to the Gold Stock Market,
Titled: