Bitcoin, the largest token by market value, fell as much as 17% on Tuesday to $17,172, its lowest since November 2020. The plunge took it below some key trading thresholds that investors had previously been viewing as support. Just about every digital coin was hit: Ether, Polkadot and Avalanche each slumped more than 14%, while both Solana and Dogecoin dropped more than 28% at one point.
FTT, the utility token of crypto exchange giant FTX, collapsed by more than 75% to around $4.70 as of 3:30 p.m. in New York, according to CoinMarketCap.com.
“It’s definitely having to do with a renewal of this crisis that’s being created by FTX, a renewed solvency crisis,” said Strahinja Savic, head of data and analytics at FRNT Financial. “And we still don’t know if this thing with FTX is over and how it will end.”
So, apparently the Ontario Teacher's Pension Fund was a C round investor in FTX. Wtf? Pretty high risk for a pension fund... one more thing for those striking teachers to be unhappy about.
So, apparently the Ontario Teacher's Pension Fund was a C round investor in FTX. Wtf? Pretty high risk for a pension fund... one more thing for those striking teachers to be unhappy about.
Doesn’t seem too unusual to have a mix of some high risk-potentially high reward exposure - hopefully they were heavily invested.
Yeah, fair enough, and they went in on the round with other good firms. Considering the whole round was only $420M they probably were only in it for a very small percent of their portfolio. Just my gut reaction to seeing that news when teachers in Ontario took so much #### throughout covid and dealing with Ford/Flecce prior to them going on strike recently.
From September
Quote:
“In terms of the risk profile, it is probably the lowest risk profile you can have in that it’s everybody else is trading on your platform,” OTPP CEO Jo Taylor told Reuters last week.
He added that business is performing well and declined to comment on the size of OTPP’s investment or the equity stake.
Founded in 2019 by 30-year old billionaire Sam Bankman-Fried, FTX Trading was valued at $25 billion in the last funding round.
Taylor’s comments follow Caisse de dépôt et placement du Quebec’s August announcement that it was writing off its entire $150 million investment in crypto lender Celsius Network after the company filed for bankruptcy this year.
Taylor said the investment in FTX Trading is part of its strategy to learn about the crypto business and whether it gives the right balance of risks and returns.
“I don’t think we have the answer to that question yet,” Taylor said
Yeah, fair enough, and they went in on the round with other good firms. Considering the whole round was only $420M they probably were only in it for a very small percent of their portfolio. Just my gut reaction to seeing that news when teachers in Ontario took so much #### throughout covid and dealing with Ford/Flecce prior to them going on strike recently.
What's the deal with FTX?
I'd never heard of it until this week but not keep reading about it and the owner making massive political funding to the US elections
What's the deal with FTX?
I'd never heard of it until this week but not keep reading about it and the owner making massive political funding to the US elections
They were a big US based exchange that exploded in size and name recognition during the last bull run and threw a lot of money around to MLB and arena sponsorships and celebrity partners. During the crash, they appeared to be a strong survivor trying to pick up smaller firms for cheap, but it turns out there's always a bigger fish.
I'm not sure if the story is true but if it is, it's a good thing Tom Brady already has a big contract with Fox to commentate or he'll have to keep on playing football.
What's the deal with FTX?
I'd never heard of it until this week but not keep reading about it and the owner making massive political funding to the US elections
It's a very ugly situation. The founder of FTX is also the founder of another crypto investment fund, Alameda, which I think he actually launched before FTX. The relationship between these has been somewhat opaque, but it has seemed for some time that FTX was at least providing privileged information to the investment fund to trade on, and probably was also providing a tonne of backdoor financing to them to use in high risk trades. Nonetheless, FTX grew to be one of the top 3-4 exchanges in the space based on volume.
The founder of Binance, CZ, appears to have had some knowledge of the holes in FTX's books, and tweeted concerns about their solvency and that Binance was going to start liquidating $1B worth if FTX's own token, FTT. This caused FTT to dump and caused a run on FTX. Because FTX likely had a whole bunch of leverage on FTT, and the price of FTT was dumping, they don't have the funds to available to handle a bank run. Binance then said they would step in to acquire FTX to bailthem out, but that deal now looks like it won't go through and CZ may have just killed off a major market player and competitor of Binance, at the expense of everyone who had funds held with them.
It's just pretty deplorable all around.
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"If stupidity got us into this mess, then why can't it get us out?"
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Crypto giant Binance has processed Iranian transactions with a value of $8 billion since 2018 despite U.S. sanctions intended to cut Iran off from the global financial system, blockchain data show.
Almost all the funds, some $7.8 billion, flowed between Binance and Iran's largest crypto exchange, Nobitex, according to a review of data from leading U.S. blockchain researcher Chainalysis. Nobitex offers guidance on its website on how to skirt sanctions.
Three-quarters of the Iranian funds that passed through Binance were in a relatively low-profile cryptocurrency called Tron that gives users an option to conceal their identities. In a blog post last year, Nobitex encouraged clients to use Tron - a mid-tier token - to trade anonymously without "endangering assets due to sanctions."
The scale of Binance's Iranian crypto flows – and the fact that they are continuing – has not been previously reported.
The new findings come as the U.S. Justice Department is pursuing an investigation into possible violations of money-laundering rules by Binance, which dominates the $1 trillion crypto industry, with over 120 million users. The transactions put the company at risk of falling afoul of U.S. prohibitions on doing business with Iran, lawyers and trade-sanctions experts said.
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The Delhi police have announced the formation of a crack team dedicated to nabbing the elusive 'Monkey Man' and offered a reward for his -- or its -- capture.
FTX is done, and there's not likely to be any acquisition coming to bail them and their customers out. Estimates are that the hole in Alamade/FTX is somewhere around 8-10 billion.
__________________
"If stupidity got us into this mess, then why can't it get us out?"
FTX is done, and there's not likely to be any acquisition coming to bail them and their customers out. Estimates are that the hole in Alamade/FTX is somewhere around 8-10 billion.
Good thing the World Series ended would have been awkward seeing the logo on all of the umps for a bankrupt company.
FTX has been a scam from the start.
Lots and lots of people and companies don't bother to do their due diligence when they toss money into something like this.
FTX has been a scam from the start.
Lots and lots of people and companies don't bother to do their due diligence when they toss money into something like this.
Also, cold storage.
It also sounds like it was mostly already wealthy people who got scammed, which kind of makes it more funny.
