The Crypto Winter Is About to Become a Crypto Ice Age

<p>The crypto market has&nbsp;<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>&nbsp;&ldquo;one of history&rsquo;s greatest-ever destructions of wealth.&rdquo;</p> <p>I won&rsquo;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&rsquo;s not for a lack of trying; it&rsquo;s just hard to make sense of things that don&rsquo;t make sense. But the essential details are as follows:</p> <ul> <li>A Coindesk report revealed&nbsp;<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&rsquo;s Alameda Research trading firm</a>&nbsp;was heavily invested in the FTX exchange&rsquo;s FTT token.</li> <li>Days later, Binance&rsquo;s CEO announced he was&nbsp;<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&rsquo;s assets were tokens from its sister company.&nbsp;<em>Side note:</em>&nbsp;what&rsquo;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&rsquo;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&nbsp;<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&nbsp;<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 &mdash;&nbsp;<em>totally nothing to see here&nbsp;</em>&mdash; to the tune of over $450 million.</li> </ul> <p><a href="https://entrepreneurshandbook.co/the-crypto-winter-is-about-to-become-a-crypto-ice-age-9d12d71e4b10"><strong>Click Here</strong></a></p>
Tags: Crypto Winter