Quick Rundown on the Fall of FTX aka Manipulation War on Twitter between 2 Crypto Kingpins
Hi! It’s Alexander from Limitless Insights, here today with a recount of events regarding the Fall of FTX. What I initially played off as the Crypto Bigwigs fighting between CZ (Binance CEO) & Sam Bankman-Fried (SBF) of FTX, has escalated into the bankruptcy, loss contagion and spiraling consequences we see in the current crypto climate.
I finally woke up from the stupor of getting rugged by the #2 Biggest Centralized Exchange (CEX) at the time, but I’ll go into the details of my losses in part two since this is already long enough.
For now, let me begin with some TLDR for those who are new to crypto or have been out of the loop.
Back in 2017, CZ founded Binance, quickly growing it to become the largest centralized crypto exchange in the world. Since it’s launch, many exchanges (Coinbase, BitMEX, Gemini, etc.) have unsuccessfully tried to take its crown.
In May 2019, a new player entered the space when Sam Bankman-Fried founded FTX.
CZ did not build the largest crypto exchange with mere luck, but with his incredible smarts. That is probably why he made the strategic decision to have Binance invest in FTX back in 2019. It was also announced that FTX would build institutional product offerings for the Binance ecosystem.
However, with FTX’s rapid growth during the last bull market, CZ started to recognize this looming threat. That’s probably why in 2021, Binance decided to divest from FTX during its $900 million funding round, claiming that it is just a “normal investment cycle” but we now know it was more.
As we remember, FTX became the 2nd largest exchange behind Binance in 2022. While Binance still does 10 times the volume of FTX, the rate of growth for FTX may eventually start to threaten Binance’s hegemony.