FTX, a“Cryptocurrency Central Bank”, Slayed by CCP-Backed CZ & Sequoia

Just as John Pierpont Morgan and other descendants of American bankers bailed out too-big-to-fail banks during the 2008 financial crisis, Alameda’s Sam Bankman-Fried (abbreviated SBF) has provided emergency liquidity to cryptocurrency companies sunken into the carnage of the crisis, and have been called the “selfless superheroes” of the cryptocurrency industry.

 FTX – the second-largest cryptocurrency exchange in the world, was considered a mainstay of the industry until last week. Even in early 2022, when the stablecoin TerraUSD plummeted to $60 billion, FTX avoided a liquidity crisis.

 Just as John Pierpont Morgan and other descendants of American bankers bailed out too-big-to-fail banks during the 2008 financial crisis, Alameda’s Sam Bankman-Fried (abbreviated SBF) has provided emergency liquidity to cryptocurrency companies sunken into the carnage of the crisis, and have been called the “selfless superheroes” of the cryptocurrency industry. He stepped in as a lender of last resort to crypto companies like Voyager Digital and Celsius and vowed to take over most of the crypto market with them. For some observers, SBF’s work has inspired many people in the cryptocurrency industry.

 From 2019, when it was rarely known by the mainstream finance field and now both FTX and SBF became the center of the limelight, over the two years, as the cryptocurrency fell to the bottom, SBF’s FTX has been trying to play the role of the “central bank” of cryptocurrencies, trying to rescue other cryptocurrency companies that are struggling.

 FTX’s recent failure is allegedly related to its issuance of the FTT token, which is the way FTX offers its holders discounts on trading fees and access to more features on the crypto derivatives trading platform.The sudden plunge in FTT’s value was reportedly triggered by a “leaked” document suggesting that Alameda Research, a hedge fund closely linked to FTX through its co-owner SBF, was effectively insolvent. The documents show that Alameda’s account is built on FTT, a token issued by FTX, which has no value other than the value guaranteed by the exchange.

 On November 6, Zhao Changpeng ( aka Changpeng Zhao, CZ)announced on social media that Binance will dump 23 million FTT tokens. He also claimed that he had obtained $2.1 billion by cashing out FTT last year. Now, due to “”recently exposed documents””, Binance will continue to sell its remaining FTX tokens.