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> I don't think it's possible to kill the crypto industry, but Alameda's implosion would be the most likely event to cause it. As a bystander, it's hard to gra
by chinathrow 4y ago
> I don't think it's possible to kill the crypto industry, but Alameda's implosion would be the most likely event to cause it.
As a bystander, it's hard to grasp the likeliness of this happenning, can someone elaborate on what would be able to trigger it?
- phphphphp 4y agoHard to say, because we can only speculate on the true state of Alameda. Sam Bankman-Fried owns both Alameda and FTX and so while they’re separate entities, they are co-mingled in many ways. Assuming FTX is a profitable enterprise (a big question in the current market) then any problems Alameda faces could be addressed by SBF leveraging FTX in some way to bail Alameda out… but it’s also plausible that FTX is dependent upon Alameda and that Alameda’s faltering could take down FTX. My guess is that an Alameda implosion is unlikely because, as far as I can tell, they’re not engaging in fraudulent behaviour, just crypto hubris… and so, worst case, they have to scale back their activity… but if they are reliant on third-party capital, and the current economic trend continues… it seems plausible that could trigger major problems in the crypto world.