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CZ vs SBF: From War to Acquisition
FTX liquidity, the state of the market, and CZ buying FTX
GM Baos,
I hope you didn't FOMO into SOL after the Google Cloud announcement… or anything else. A lot has happened in the past 48 hours.
We cover:
Is FTX insolvent?
The state of the market 📉
CZ Binance buys FTX
How it all started
It hasn't even been six months since the LUNA/UST crash 😭 Can we please wait at least five years before having the next black swan event?
This time around it is FTX who crashed the markets. Everyone is shocked because they are the third largest cryptocurrency exchange in the world. Sam Bankman-Fried (SBF) was doing good things with FTX and his Alameda Research fund—or so we thought.
The timeline of events…
November 2nd- Coindesk reported Alameda Research had a large amount of FTT on their balance sheet. The token of FTX’s exchange.
Why could this be a problem? This means a majority of Alameda’s equity is with a vaporous token that’s value is tied to FTX. If something were happen with FTT, Alameda couldn’t cover their debts.
November 6th- After seeing the Coindesk article, Changpeng Zhao (Binance CEO) tweets they will sell all their FTT holdings. Saying they will do it gradually to minimize market impact.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance)
3:47 PM • Nov 6, 2022
FTT’s price starts to rapidly decrease.
SOL’s price starts to rapidly decrease.
November 7th- Everyone rushes to withdraw funds from FTX (before they lock withdrawals). And within 72 hours FTX had processed $6b in withdrawals.
As everyone was panicking, FTT and SOL kept plummeting more. Leaving Alameda with major gaps on their balance sheet. Since FTT and SOL were two of their largest holdings.
The market falls apart 🤯
If FTT being down -80% in 24 hours and FTX locked withdrawals wasn’t enough.
Coinbase users panic as Coinbase temporarily goes down.
We’re currently experiencing network connection issues for , Coinbase Pro, and Coinbase Prime. This could result in difficulty signing in. If you’re already signed in you may experience slow loading across web and the mobile app.
— Coinbase Support (@CoinbaseSupport)
5:39 PM • Nov 8, 2022
BitBoy claims he ended Sam’s career…
I took that man’s whole career
— Ben Armstrong (@Bitboy_Crypto)
12:13 AM • Nov 9, 2022
DoKwon goes on the UpOnly podcast.
Zhu Su resurfaces for the first time in months. To tweet about… himself 😳
There I was, surfing the wave of waves, next moment wiped out, board broken, rocks reefs everywhere
The sudden pain of business failure and loss of purpose, as a golden child of the industry + biz cycle more broadly, was as difficult as the ensuing ostracization and demonization
— Zhu Su 🔺 (@zhusu)
3:47 AM • Nov 9, 2022
Binance to aquire FTX & end the chaos
Sam ain't a billionaire anymore. Bloomberg estimated his net worth fell from $15.6b yesterday to $991m today.
While prices are still down bad, this is where the drama ends— I hope. SBF and CZ sign a non-binding letter of intent for CZ to acquire FTX.
1) Hey all: I have a few announcements to make.
Things have come full circle, and ’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for (pending DD etc.).
— SBF (@SBF_FTX)
4:03 PM • Nov 8, 2022
We will have to see what happens next and if the acquisition deal goes through 🙏
Bao-Sized News
Kim Kardashian & Floyd Mayweather set to win the EMAX lawsuit
US DOJ seizes $3.36b worth of crypto from a man in Gainsville, GA
Elon Musk fires 50% Twitter staff & then asks some to come back
Made us Kek
I wish this was me.
Normal people just outside enjoying life like nothing happened
— icebergy ❄️ (@icebergy_)
8:35 PM • Nov 8, 2022
The bear market of 2022 claims another victim
— yzy.eth (@LilMoonLambo)
3:52 PM • Nov 8, 2022
picked up my dream car today. web3 money really is life changing 🤩🥺
— keane (@0xKeane)
8:16 AM • Nov 8, 2022
If you're still here, WAGMI 💙
–Cassidy