CRYPTO NEWS: THE TRILLION DOLLAR CRYPTO EXCHANGE IS DEFENSELESS BECAUSE OF THE HOLD.

TODAY WE WILL DISCUSS ABOUT THE TRILLION DOLLAR CRYPTO EXCHANGE IS DEFENSELESS BECAUSE OF THE HOLD. ONE NAME STOOD OUT AMID THE WAVE OF BITCOIN BANKRUPTCIES AND CRASHES THIS SUMMER: SBF, ALSO REFERRED TO AS SAM BANKMAN-FRIED.

OVERVIEW OF THE TRILLION DOLLAR CRYPTO EXCHANGE IS DEFENSELESS BECAUSE OF THE HOLD:

THE TRILLION DOLLAR CRYPTO EXCHANGE IS DEFENSELESS
THE TRILLION DOLLAR CRYPTO EXCHANGE IS DEFENSELESS BECAUSE OF THE HOLD

THE OWNER OF FTX, THE SECOND-LARGEST CRYPTOCURRENCY EXCHANGE IN THE WORLD, IS AN AMERICAN MILLIONAIRE BUSINESSMAN WITH A BASE IN THE BAHAMAS. HE HAS EMERGED AS A KEY FIGURE IN THE COLLAPSE OF CRYPTOCURRENCY PLATFORMS AND HEDGE FUNDS LIKE CELSIUS NETWORK, VOYAGER, AND THREE ARROWS CAPITAL THIS YEAR, USING A METAPHORICAL $1 BILLION PARACHUTE TO SWOOP UP FAILING BUSINESSES, SUPPORT THOSE WHO ARE IN FINANCIAL TROUBLE, AND TOY WITH THE IDEA OF MAKING ACQUISITIONS WORTH HUNDREDS OF MILLIONS OF DOLLARS.

BY ANNOUNCING HIS WILLINGNESS TO SPEND UP TO $1 BILLION TO SUPPORT THE DEMOCRATIC PARTY’S CHANCES IN 2024, HE HAS ALSO EMERGED AS A MAJOR PARTICIPANT IN AMERICAN DOMESTIC POLITICS. IF CONGRESS PASSES SIGNIFICANT CRYPTOCURRENCY REGULATION, ESPECIALLY IN LIGHT OF THE 2022 “CRYPTO WINTER,” THAT WILL PROVE TO BE POWERFUL.

HIS BUSINESSES BOUGHT THE CANADIAN PLATFORM BITVO AND THE JAPANESE PLATFORM LIQUID IN 2022 ALONE. THEY ALSO PURCHASED A 30% STAKE IN ANTHONY SCARAMUCCI’S SKYBRIDGE CAPITAL, 7.6% OF TRADING PLATFORM ROBINHOOD, AND A WHOPPING $400 MILLION LOAN TO BLOCKFI WITH THE OPTION TO PURCHASE IT OUTRIGHT BY OCTOBER 2023.

HE HAS A CONVOLUTED RELATIONSHIP WITH VOYAGER DIGITAL, AN EXCHANGE THAT DECLARED BANKRUPTCY IN JULY. ALAMEDA RESEARCH, HIS PRIVATE EQUITY VEHICLE, IS A CREDITOR, INVESTOR, AND BORROWER. ACCORDING TO BANKRUPTCY RECORDS, ALAMEDA OWED VOYAGER $370 MILLION AT FIRST, BUT IN LATE JUNE, THE FIRM LENT IT MORE THAN $500 MILLION IN CRYPTOCURRENCY TO PAY CUSTOMER ACCOUNTS. LATER RECORDS INDICATE THAT ALAMEDA ULTIMATELY BORROWED UP TO $1.6 BILLION FROM VOYAGER.

ALAMEDA RESEARCH ALSO EXTENDED A $12.8 MILLION LOAN TO CELSIUS NETWORK, A CRYPTOCURRENCY LENDING PLATFORM THAT DECLARED BANKRUPTCY IN JULY, OVER THE SAME TIME FRAME.

PHAROS USD FUND WAS CELSIUS’S SINGLE-LARGEST CREDITOR, ACCORDING TO BANKRUPTCY RECORDS. THIS $81.1 MILLION DEBT WAS OWING TO A CAYMAN ISLANDS-BASED INVESTMENT COMPANY. THE COMPANY RESPONSIBLE FOR MANAGING AND OWNING THAT FUND IS LANTERN VENTURES, WHOSE CEO, TARA MAC AULAY, IS A CLOSE FRIEND AND FORMER COWORKER OF BANKMAN-FRIED AT THE CENTRE FOR EFFECTIVE ALTRUISM AS WELL AS A CO-FOUNDER OF ALAMEDA RESEARCH.

WE ARE LEFT WITH A SCENARIO WHERE ONE PERSON — BECAUSE OF HIS CONTROLLING SHARES AT MULTIPLE COMPANIES AND CONNECTIONS TO INVESTORS, DEBTORS, AND CREDITORS — HAS A SIGNIFICANT STAKE IN A SIGNIFICANT PORTION OF THE BROADER CRYPTOCURRENCY TRADING INDUSTRY, DESPITE THE FACT THAT A COMPLETE FORENSIC ACCOUNT WOULD BE IMPOSSIBLE TO TABULATE.

LEVERAGED TRADING, VARIOUS LOANS, AND SWAPS ARE COMMON FOR FINANCIAL FIRMS. HOWEVER, THEY POSE A COMPLETELY NEW DEGREE OF RISK IN THE REALM OF OPEN BLOCKCHAIN-BASED DIGITAL CURRENCY.

HE WILL ALSO HAVE A TREMENDOUS INFLUENCE ON THE DIRECTION OF DEMOCRATIC PARTY POLITICS THANKS TO HIS NEWFOUND CONNECTIONS WITH POLITICIANS AND POLITICAL CAMPAIGNS, ESPECIALLY SINCE HE IS PRESIDENT BIDEN’S GREATEST FUNDRAISER.

WITHOUT A QUESTION, SBF IS AMONG THE MOST SUCCESSFUL INVESTORS OF THE MODERN ERA. BUT DOES HIS IMPORTANT POSITION PUT A FRESH, CUTTING-EDGE SECTOR OF OUR ECONOMY AT RISK?

IT IS CONCERNING FOR THOSE OF US WHO HAVE A STAKE IN DECENTRALISED PROTOCOLS LIKE BITCOIN AND OTHER CRYPTOCURRENCIES FOR WHICH ONE PERSON HOLDS SUCH A LARGE AMOUNT OF FINANCIAL AND ADMINISTRATIVE POWER.

CONSUMERS ARE AT RISK OF LOSING HUNDREDS OF BILLIONS OF DOLLARS DUE TO THE FACT THAT SO MUCH CRYPTOCURRENCY VALUE IS DEPENDENT ON LENDING AND EXCHANGE PLATFORMS RATHER THAN PERSONAL WALLETS. IT ONLY TAKES ONE BANKRUPTCY TO CAUSE RIPPLE EFFECTS, AS WE SAW WITH THE DEMISE OF TERRAUSD, AN ALGORITHM STABLECOIN. WILL A SINGLE INVESTOR’S GENEROSITY AND COMMERCIAL SAVVY SUSTAIN A TRILLION-DOLLAR INDUSTRY?

WASHINGTON POLITICIANS WILL SOON DECIDE HOW THE GOVERNMENT WILL CATEGORISE CRYPTOCURRENCY. THEY WILL CITE CONCERNS ABOUT CONSUMER PROTECTION, SPECULATIVE INVESTMENTS, AND FINANCIAL RISK. WHATEVER HAPPENS, BANKMAN-FRIED WILL UNAVOIDABLY HAVE AN IMPACT ON IT.

FUTURE REGULATIONS THAT CONTRIBUTE TO REGULATORY CLARITY, DETER DISHONEST CHARACTERS, AND PROMOTE FINANCIAL TRANSPARENCY WOULD BE ADVANTAGEOUS TO ALL OF US. NO MATTER HOW SUCCESSFUL THEY MAY BE, A SINGLE PERSON’S WHIMS CANNOT SERVE AS THE STANDARD FOR THE DIRECTION OF DECENTRALISED DIGITAL CURRENCY IN THE FUTURE.

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CRYPTO NEWS: THE TRILLION DOLLAR CRYPTO EXCHANGE IS DEFENSELESS BECAUSE OF THE HOLD.

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