"FTX Post Mortem Part 1 Of 3: WTF Really Happened?" (Hill):
"There’s nothing inherently wrong with using Crypto tokens as collateral if there is a robust and deep market pricing them. If the loan goes bad, lenders can seize the collateral and sell it off, covering some of their loss.
FTT didn’t have a deep and robust market.
The “flywheel” scheme – via Dirty Bubble Media
There was barely any volume. There was barely any liquidity. If a lender had to sell a large volume in a hurry there weren’t any buyers ready to step in.
While Alameda was claiming to have $5.82 billion of its balance sheet held in FTT tokens, the entire available market cap was less than $4 billion.
Read that again, Alameda’s balance sheet held more than the entire market cap of FTT.
So this wasn’t a situation where a lender might make a loss on selling the collateral, this was a situation where there were potentially billions in loans floating around in the Crypto ecosystem with essentially no collateral that could be liquidated without detonating the market.
Just to top it off, some of this FTT was likely pledged to multiple lenders."
"Bakhmut Front Update & Analysis" (Weeb Union War Updates).
"Russia Continues Grinding Away Ukrainian Military & Electrical Power (Update for November 21, 2022)" (The New Atlas).
"Ukraine. Military Summary And Analysis 20.11.2022" (Military Summary).
"Meloni agrees with Putin, slams Macron. Elensky, Russia offered short truce. Sunak visits Kiev. U/1" (Christoforou).
Posts
