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It's amazing how all of this was based on personal credibility, and a single Tweet caused the death spiral to start. Wells Fargo isn't going to go out of busin
by twblalock 4y ago
It's amazing how all of this was based on personal credibility, and a single Tweet caused the death spiral to start.
Wells Fargo isn't going to go out of business if the CEO of Bank of America insults it on Twitter. But even if it did, there is FDIC insurance for deposits, and nobody whose balances were under the insurance limits will lose a penny.
FTX succeeded solely based on the reputation and personal credibility of its founder. One tweet from the CEO of a rival exchange and the whole thing came crashing down, taking a significant bite out of the value of many cryptocurrencies. So, even people who didn't have accounts at FTX are hurt by their assets losing value.
- deleted 4y ago[deleted]
- iKlsR 4y agoWhat tweet was that? Just seeing the news and trying to back track and get the context and leadup.
- papercrane 4y agoThis is the tweet that's been credited with starting all this. https://twitter.com/cz_binance/status/1589283421704290306 https://twitter.com/cz_binance/status/1589283421704290306 For context this tweet is referring to reports that a very large percentage of Alameda's holdings are FTT.
- deleted 4y ago[deleted]
- ipv6ipv4 4y agoRead the comments here. They are a lot like the LiveStreamFail subreddit - minor celebrity gossip. In that context, it’s not so surprising that a tweet had the effect it had.
- FormerBandmate 4y agoPeople don’t have their life savings wrapped up in Twitch streamers
- octodog 4y agoIt's not based on personal credibility, it's based on regulation. Wells Fargo wouldn't collapse because it's regulated and has some actual provable guardrails in place.
- randomsearch 4y ago> FTX succeeded solely based on the reputation and personal credibility of its founder This is why so many people compare crypto to the pre-regulation banks, and why they predict a similar fate for the exchanges.