Comment · Wed, November 16, 2022 · ND Owner
SBF from FTX uses nootropics depot. Can anyone zoom in and figure out what supplement that is?
What they were answering
MisterYouAreSoDumb · 5 points
The fact of the matter is that FTX held basically ZERO bitcoin at the time of failure, even though billions of dollars of BTC was bought by customers through their exchange. What does that mean? Well that means they were effectively facilitating BTC buys through their exchange, but immediately converting them to FTT to loan out to Alameda to funnel into other coins like Solana. FTX/Alameda were the primary driving forces behind the Solana funding this cycle, and it is looking like they were doing that through essentially shorting BTC and ETH the entire cycle. This is because when you are an exchange facilitating buys of BTC and ETH on your platform, but then immediately converting them to your exchange token, you are effectively entering into a short position against BTC and ETH. However, this is a naked short position, as it is only backed up by your fabricated FTT token. If you then lend that FTT token out to a trading firm to prop up the price of shitcoins like SOL, things implode when the music stops. Customer's buys of BTC and ETH on FTX should have been backed 1:1 in the exchange's hard wallets. This would lead to efficient price action on those coins, because real supply/demand forces would be resulting in the price action. However, it appears what FTX did was use customer's deposits and trades to funnel that liquidity to other projects in the space. This leads to ineff…
u/MisterYouAreSoDumb · ND Owner
..continued...
So anyway, that's my side of things. We will know more as the situation progresses. However, I am pretty sure we will come to realize that this situation with FTX/Alameda/Celsius/Terra/Luna/Three Arrows/insert BS here has resulted in not only depressing legitimate price discovery for BTC and ETH this cycle, but has irreparably harmed crypto's reputation with a large part of the population. Nobody even really talked about the Taproot upgrade in BTC, because shiba inu faces were more exciting. I've seen literally nothing on the Liquid Network or FediMint, even though those are huge technology improvements to the BTC network. The Lighting network being at ATH in capacity is not something even thought about right now. Real crypto will keep doing what it does, and bitcoin will keep being the longest-running and most secure blockchain in human history.