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> Three months earlier, in July 2021, Mr. Bankman-Fried bought out the roughly 15% stake owned by Binance, FTX’s first outside investor. Binance CEO Changpeng Z
by sillysaurusx 4y ago
> Three months earlier, in July 2021, Mr. Bankman-Fried bought out the roughly 15% stake owned by Binance, FTX’s first outside investor. Binance CEO Changpeng Zhao tweeted this month that the amount totaled $2.1 billion, paid in a combination of FTT, FTX’s in-house cryptocurrency, and BUSD, Binance’s stablecoin, whose value is pegged to the U.S. dollar.
Hmm. Binance triggered FTX's downfall by dumping FTT, causing the domino effect.
Does this mean that Sam was the one who sold Binance the FTT which Binance subsequently used to cause FTT to collapse? I just assumed Binance bought a bunch of tokens themselves for some reason.
That's quite the turn of events!
- wmf 4y agoDoes this mean that Sam was the one who sold Binance the FTT which Binance subsequently used to cause FTT to collapse? Yes exactly. Binance triggered FTX's downfall by dumping FTT I don't know if they actually dumped; they just announced it. It doesn't matter now.
- sillysaurusx 4y agoIt matters! Because that'd be hilarious. Is that really true that an announcement of a pending large sale (but no actual sale) was enough delta to topple the house of cards? Fascinating.
- kjs3 4y agoWell, of course it's true. How could it be otherwise. If you see an 'announcement' and you wait for consummation, you've already missed any market move you could have taken advantage of.
- wmf 4y agoCZ announced that he was going to sell a certain amount of FTT and people could see that there wasn't that much liquidity on all the markets combined which implied that the price was going to near zero eventually, so other people completely rationally started selling FTT before CZ.
- KptMarchewa 4y agoAFAIK they weren't able to sell everything before FTX collapsed, leaving them at a loss.
- HWR_14 4y agoCZ may have planned on dumping FTT, causing a run on the bank, and then acquiring everything for almost nothing. Had it not been a fraud, it could have been a brilliant (illegal??) move. Now that it is a fraud, CA is trying to prevent the contagion from trying to take down the whole crypto market. Hilarious if CZ managed to sell 15% for the tools to get 100% though.
- deleted 4y ago[deleted]