Where Do We Go From Here? Reflecting on FTX/Alameda Implosion..
It's been a tough few days for some of us cryto heads. More accurately it's been a challenging year! Almost hard to imagine that such a prominent exchange like FTX would go up in fire in a matter days.
Like other, more recent Web3 implosions, this is a contagion, and I suspect that the damage has not yet been fully felt. Here's hoping that anything unknown that's left to explode, burn, and smolder can be dealt with quickly.
It's always better to rip the band-aid off sooner rather than later in my experience.
In a matter of 7 days FTX went from everything is fine to poof. On November 2 Coin Desk published this post claiming to have read a private document bringing to light the fact that the Alameda's balance sheet was full of FTT token, and SOL, much of it not liquid.
A few days later we see a massive influx of BTC onto exchanges, A TIP OFF THAT SOMETHING IN THE SOPACE IS BREWING.
The following day CZ says he's dumping, and fears of a contagion run rampant dragging the markets into the gutter. CZ teases an acquisition, makes a non binding letter of intent to get free DD and peak under the hood only to shut it down a day later.
Why would he buy FTX and or Alameda, nearly a half billion of BTC already made its way off FTX and onto Binance, with the wallets and users behind those funds. At this point I think he acquired all he's really interested in.
Solana Implications
To bad SOL got dragged into the mess, that really sucks, and makes this officially a contagion in my books. I haven't played with SOL much but the growth they've experienced the past 2 years has been tremendous.
It's a low cost version of ETH for many in the NFT and digital collectibles space. Many of these folks dont have the cash to play on the Ethereum chain and Solana was an affordable option. Now they're down and liking their wounds, hate to see it, they didn't deserve it.
Lets see what's to make of soBTC, is it really backed by thin air too?
Touch Grass
As @vlemon put it in his post yesterday, touch grass crypto friends. For many of us Web3 is life, it rules everything around me. It's everyday! Bad news, after bad news is tough to take. But we must push on!
A Drake/Lil Baby lyric comes to mind "I don't even bargain, I'll start from the bottom. I lost a Ferrari, Las Vegas, Nevada I woke up the followin' day and went harder". So lets fucking go!
This is depths of crypto winter, those here right now are the strong, the real ones. You can hope for better days or you can make better days, I'll continue to choose the latter.
Time to take a walk to the beach with the pup, touch grass, absorb the waves and reflect on the past months. When one chapter closes another one opens.
Ciao for now,
Posted Using LeoFinance Beta
