3 ms·
Just like Zhao blew on a tiny ember at FTX.
by throitallaway 4y ago
Just like Zhao blew on a tiny ember at FTX.
- onlyrealcuzzo 4y agoNo. Nice try. Cute. But not at all. 1) FTX held assets, not deposits that are understood to be fractional reserve. 2) FTX used the majority of those assets to buy bullshit. 3) The bullshit dropped in value by 80% (before Zhao yelled fire). 4) Everyone who gave FTX any money lost almost everything, on top of the equity investors getting wiped out completely. 5) SVB had something like 20% of assets held in long-term treasuries that "only" lost 25% of value - in a world where it's understood this is how things work and there's regulations in place and, even still, no depositor is losing money...