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A List of Wrong Narratives I Have Seen Recently

This document summarizes and critiques various narratives that have emerged around the collapse of FTX. It notes that: 1) CZ did not destroy FTX singlehandedly, and the exchange's failure was due to its own mismanagement, fraud, and misuse of funds. 2) One tweet from CZ promising to sell FTT tokens did not cause FTX's point of no return - the data shows its liquidity had already evaporated due to decisions that left it precariously dependent on that single asset. 3) Comparisons between CZ and SBF framing them as competitors in an "epic showdown" miss the point that a healthy crypto ecosystem benefits from multiple exchanges

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Edgar Muyia
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28 views2 pages

A List of Wrong Narratives I Have Seen Recently

This document summarizes and critiques various narratives that have emerged around the collapse of FTX. It notes that: 1) CZ did not destroy FTX singlehandedly, and the exchange's failure was due to its own mismanagement, fraud, and misuse of funds. 2) One tweet from CZ promising to sell FTT tokens did not cause FTX's point of no return - the data shows its liquidity had already evaporated due to decisions that left it precariously dependent on that single asset. 3) Comparisons between CZ and SBF framing them as competitors in an "epic showdown" miss the point that a healthy crypto ecosystem benefits from multiple exchanges

Uploaded by

Edgar Muyia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A List Of Wrong Narratives I Have Seen Recently

“CZ Wants To Be The Savior Of Crypto.”


Cryptos do not require saving. That is the beauty of decentralization. The idea is to help
other great projects that may be in financial trouble due to recent events. It is our
collective interest.
FTX Was Killed By Xyz (Ie, A 3rd Party)”
No, FTX killed itself (and its users) for stealing billions of dollars in user funds. period.
SBF had good intentions, but just made some mistakes.”
Lying does not have desirable intentions
“CZ’s Tweet Destroyed FTX”
SBF continued the story where others were portrayed as 'bad guys.’ It was important to
maintain the illusion that he was a 'hero'. SBF is one of the greatest fraudsters of all
time he is a master when it comes to media and critical opinion his leader is also a
manipulator.
FTX’s Point of No Return Can Be Traced Back to This Tweet, Data Show
When did Sam Bankman-Fried's crypto empire go from desolate to hopeless? One
remarkably brief says it was the moment his representatives took to Twitter to try to
prevent the collapse of the token FTT.
The general meltdown was caused by a decision by a much larger force that resulted in
Bankman-Fried's operation coming to a precarious pause on the coin, while Binance
CEO Changpeng "CZ" Zhao The promise to sell was made at time zero and Caroline
Ellison offered to buy all the coins. The CZ is below market price. At that point, the
market liquidity in the asset, which FTX had valued at around $5 billion a week before it
evaporated.
The breakdown, compiled by risk modeling firm Gauntlet, does not provide a
comprehensive explanation of why FTX fell, but mismanagement, fraud, and the
reported use of foreign exchange funds to support Alameda Research. Decisions are
viewed as a far greater sin.
Gauntlet data is calculated by calculating the ratio of total buy orders to total sell orders
for FTT's major trading pairs on cryptocurrency exchanges such as FTX, Bitfinex, and
Bitstamp, weighted by the difference from the spot price. fell below minus 200 shortly
after Ellison. % reduced by 11:03 am.
The use of FTT reveals that FTT is not only one of the major assets on FTX's balance
sheet, but is also used as insurance to get money from both centralized and
decentralized lenders.
According to a Twitter thread from Cumberland, a large crypto trading hub owned by
Chicago-based DRW, it is not uncommon in cryptocurrencies for trading firms to obtain
loans from lenders using tokens as collateral.
In general, cryptocurrency businesses face the challenge of accessing traditional
banking services. However, unlike more popular collateral tokens like Ether, FTT is a
relatively illiquid asset, with a fully diluted supply of around $352.2 million.
“SBF vs CZ: The Epic Showdown”
If the industry only reaches 6% of the population, the user does not need to focus on
competitors because it is a waste of time and resources. Having multiple exchanges is
the goal. Others include multiple blockchains and multiple wallets to coexist in the
ecosystem.

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