ELON TUSK IS GOD

[Kalam]

I dont have a particular opinion on FTX one way or another. But I feel that most banks ("real" and Crypto) would have the same problem if everyone tried to withdraw at once. Of course real banks have governments to prop them up. So it seems the real moral of the story is that if you want to run a bank, make sure there is a lot of people with a lot of guns making sure you stay afloat if something goes wrong.

as someone pointed out elsewhere, the difference between unicorn juggernaut and ponzi is often a bear market suddenly appearing.

ftx's biggest holding was 2.2bn USD of some shitcoin that has a current notational value of like 84m USD.

their model required market liquidity to survive and when it went away, they didnt survive.

the fact that the top dogs were a dozen amphetamine addicted polyamorous weirdos living together in a penthouse in the bahamas lends itself to the theory that they simply didnt have the financial / management acumen to hedge against downturns, only double down on hypergambling to gut through them.

Ok. I read that customers attempted $6 billion in withdrawals in a short time span in a panic. Do you think Binance, Coinbase or any other exchange could survive that? Could most US banks survive that? My gut is no, but I really dont know. The point is the narrative seems to be all about the eccentricities of the owner (and his questionable money management), and seems to be missing the forest for the trees.

In China recently didn't Chinese citizens try to make a run for their money and were met with tanks that told them to go home? In comparison, seems that FTXs main shortcoming was lack of tanks.