FTX/Alameda Investments - Shorting Opportunities?
FTX and Alameda will begin Bankruptcy and reorganization in accordance with Chapter 11. The companies and tokens they've invested in are also on the verge of being liquidated.
Note that Chapter 11 is different than chapter 7. From my7 limited understanding chapter 7 is liquidation to cover debtors while chapter 11 gives an opportunity to reorganize.
In a Chapter 7 bankruptcy, the assets of a business are liquidated to pay its creditors, with secured debts taking precedence over unsecured debts. In a Chapter 11 bankruptcy, the company continues to operate and restructures under the supervision of a court-appointed trustee, with the goal of emerging from bankruptcy as a viable business.
There may be some companies on this list that you hold positions in, if so you'll want to consider your options. I'm sharing this info in the hopes that it helps people make informed decision. I can't confirm the validity of this list, and am hering some info may be outdated, DD required.
I do know these 2 companies (FTX/Alameda) had many investments across the space, that will unfortunately be affected.
Sources: Tweet Google Doc
The google doc contains amounts $ and dates, most dated back to spring summer 2022. As a result some info will inevitable be out of date, things move fast in Web3.
If you like to short, you can mine this list for opportunities. From this list 1INCH and APTOS are stand out so far.
The FTX/Alameda bankruptcy is a contagion which will continue to spread throughout the industry, effecting some of the businesses that they had large investments in.
Stay safe out there, and happy shorting.
Ciao for now,
Posted Using LeoFinance Beta
