The Crypto Winter Is About to Become a Crypto Ice Age

The crypto market has <a href="https://www.bloomberg.com/news/articles/2022-11-11/sam-bankman-fried-s-assets-go-from-16-billion-to-zero-after-ftx-collapse" rel="noopener ugc nofollow" target="_blank">just witnessed</a> “one of history’s greatest-ever destructions of wealth.” I won’t claim to fully understand the complexities of the saga involving the FTX exchange, Alameda Research and recently dethroned Crypto Golden Boy Sam Bankman-Fried. It’s not for a lack of trying; it’s just hard to make sense of things that don’t make sense. But the essential details are as follows: <ul> <li>A Coindesk report revealed <a href="https://www.coindesk.com/business/2022/11/02/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet/" rel="noopener ugc nofollow" target="_blank">Sam Bankman-Fried’s Alameda Research trading firm</a> was heavily invested in the FTX exchange’s FTT token.</li> <li>Days later, Binance’s CEO announced he was <a href="https://www.coindesk.com/business/2022/11/06/binance-sells-holdings-of-ftx-token-as-alameda-ceo-defends-firms-financial-condition/" rel="noopener ugc nofollow" target="_blank">selling his remaining holdings of FTT tokens</a>. In other words, he was spooked by the fact a huge chunk of Alameda’s assets were tokens from its sister company. Side note: what’re the bets Binance is the next domino to fall?</li> <li>The FTT token price plunged after the news, and, as always, customers rushed to withdraw their holdings, leaving big financial holes to fill.</li> <li>Binance suggested it would come to FTX’s rescue until it looked under the covers and got a fright. With no one coming to plug the holes, almost overnight, the exchange became insolvent and has since <a href="https://www.coindesk.com/policy/2022/11/11/ftx-files-for-bankruptcy-protections-in-us/" rel="noopener ugc nofollow" target="_blank">filed for bankruptcy</a>. Sam Bankman-Fried has <a href="https://www.theverge.com/2022/11/11/23453164/ftx-bankruptcy-filing-sam-bankman-fried-resigns" rel="noopener ugc nofollow" target="_blank">resigned</a>.</li> <li>The exchange then got hacked — totally nothing to see here — to the tune of over $450 million.</li> </ul> It leaves behind a wreckage. Billions of dollars up in smoke — both seasoned and retail investors are facing huge losses. Sam Bankman-Fried (who goes by SBF, which tells you everything you need to know about the man and the bro culture of the crypto world) saw his estimated fortune of $15 billion <a href="https://edition.cnn.com/2022/11/09/business/sam-bankman-fried-wealth-ftx-ctrp/index.html" rel="noopener ugc nofollow" target="_blank">implode 94%</a> in a single day. It might even drop further, as the token has every chance of completely collapsing. <a href="https://entrepreneurshandbook.co/the-crypto-winter-is-about-to-become-a-crypto-ice-age-9d12d71e4b10">Learn More</a>