Forwarded from MessageInABottle
The 2 images above describe what seems to have happened at #FTX #Crypto-currency exchange.
CEO Sam Bankman-Fried (#SBF) operated what is known as a "Flywheel scheme" at #FTX
Flywheel schemes enable firms to mark their illiquid token holdings to market value.
Throw in a little market manipulation, and you can generate billions in assets.
At least, on paper.
In reality, these tokens cannot be monetized because the markets are so distorted!
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#FTX's token, #FTT, is used internally within the exchange.
#FTX's "assets" included #FTT valued at over $5 Billion.
However #FTT's market capitalization was only approx $3 Billion. 🤷♂
Additionally the majority of the remainder of #FTX "assets" appear to be highly illiquid #AltCoin tokens
https://twitter.com/MikeBurgersburg/status/1588481525527502848
CEO Sam Bankman-Fried (#SBF) operated what is known as a "Flywheel scheme" at #FTX
Flywheel schemes enable firms to mark their illiquid token holdings to market value.
Throw in a little market manipulation, and you can generate billions in assets.
At least, on paper.
In reality, these tokens cannot be monetized because the markets are so distorted!
-----------------
#FTX's token, #FTT, is used internally within the exchange.
#FTX's "assets" included #FTT valued at over $5 Billion.
However #FTT's market capitalization was only approx $3 Billion. 🤷♂
Additionally the majority of the remainder of #FTX "assets" appear to be highly illiquid #AltCoin tokens
https://twitter.com/MikeBurgersburg/status/1588481525527502848
Forwarded from MessageInABottle
This #SBF #FTX saga gets worse!
#SamBankmanFried seems to have reeled in all his own employees into his cryptoponzi scheme
#SamBankmanFried seems to have reeled in all his own employees into his cryptoponzi scheme