Davide
@0xdavide
📚In 2022 there were many failures in the crypto world. Both decentralized (Terra) and centralized. Among the main ones we remember: -Luna/Ust (May 2022) -Three Arrows Capital (June 2022): connected to Ust and Anchor -Celsius (June 2022): connected to 3AC, Ust and Anchor -Voyager Digital (June 2022): connected to 3AC, Ust, Anchor and Celsius -BlockFi (November 2022): connected to 3AC, Ust and Anchor -Genesis (November 2022): connected to 3AC-FTX (November 2022): general contagion and different types of fraud Bankman-Fried stated that FTX had enough liquidity to satisfy 24 times the average daily withdrawals. Celsius used an internal stress scenario that assumed a 20% outflow of customer funds in response to price drops of 50%. BlockFi’s liquidity strategy aimed to hold 10% of customer funds in assets that can be liquidated immediately and 50% in assets that could be liquidated within 7 calendar days.
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Davide
@0xdavide
Almost all of these companies have always reassured customers that the platform is in good health. In fact, Do Kwon, the founder of Terra, has always been “trash talking” about X. As you can see, all the companies affected, to avoid triggering further bank runs and capital outflows, have always reassured customers. The first lesson of this story is that you should never trust those who manage them (this also applies to real banks). FTX, then in November 2022, used the same strategy. Probably without Binance's FUD they would have filled the liquidity hole because the exchange had a profit (only from fees) of around 900M dollars. Again they tried to reassure customers, the exchange even (when the bank run was going on) showed a video of their new headquarters in the Bahamas. Of course as CZ says in his famous quote "4" do not fall for any attempt at FUD. You should always base your research on mathematical data because fake news are also used to manipulate markets and sink exchanges.
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