Something crazy just happened. FTX, previously the second largest cryptocurrency exchange, collapsed overnight. It went from a valuation of around $16 billion to a negative valuation due to a liquidity and debt crisis. How did that happen?
FTT, a crypto currency issued by the FT scambio exchange, lost value because Binance, the largest cryptocurrency exchange, said it would liquidate FTT. The FTT then continued to collapse, thus causing a crisis of confidence in FTX
Binance, which sparked the panic in the first place, then said it had signed a non-binding letter of intent to buy FT. But after reviewing FT libri’s books, Binance backed down and let FT coll collapse, eliminating one of its biggest competitors.
FT fondi
Since it is an exchange, it is difficult to understand how FT potrebbe Apparently, FT deve now owes billions to its customers and does not have the money to pay them. Where the hell did your clients ‘ funds go?
The founder of FT., the Hedge Fund Alameda Research by Sam Bankman-Fried, allegedly owns a series of FTT, the currency created by FT. The financial transaction tax was filed as collateral, which allowed FTX When the financial transaction tax collapsed, FT rimasta
This is similar to the Charles Sch brAb brokerage, which uses your money and investments to invest in something speculative in a sister company of Sch. They would not allow it unless they gave permission and received a sufficiently high fee.
How do you transfer 1 10 billion in customer funds to your trading company Alameda without anyone knowing? According to Reuters, FT integrato would have integrated a “backdoor”into its accounting softare
Strengthening investor confidence in cryptocurrencies
I don’t understand how the cryptocurrency market is coming back from the merger between FTX Sam Bankman-Fried was supposed to be the “Savior,” according to Sequoia’s first investor.
It is also believed that Bankman-Fried invested 8 80 million in the midterm elections and donated equally to both parties, which means that he was supposed to become a puppeteer of politicians. Maybe a rescue is coming, but I doubt it. Bankman-Fried’s net worth is now potentially negative, having been valued at around $ 16 billion last week.
If regulators detect bluff, which seems likely, things could get worse for Bankman-Fried. His power has faded, and prominent supporters and politicians will now remain as far away from him as possible. Funny how people lose their status very quickly when their money disappears.
Even though I only have one crypto-related investment, HUT, left in my portfolio, I don’t want to spend a lot of time in space anymore. Only in the last 12 months, LUNA went to 0 0. 3AC went from $18 billion to 0 0. Celsius and Voager And now FTX and FTT have collapsed.
At the moment, it seems that cryptocurrency is absolutely not investable. FTX and Sam Bankman-Fried have made so many investments that there will definitely be a huge amount of settlement.
If you own a cryptocurrency, transfer your coins to your wallet for God’s sake. If you leave your coin on the stock exchange, you will receive a promissory note. You may never have it.
1) Keep speculative investments at no more than 10% of your investment portfolio.
A speculative investment can range from investing in a startup to investing in a skyscraper such as an NFT. If you lose all your money, you have at least 90% of your wallet remaining. However, if you do it big, it is enough to have up to 10% of your portfolio in such assets to move the needle.
Speculative investments can also include micro-cap growth stocks, high-yield bonds and, of course, crypto. But sometimes even investments that are considered non-speculative collapse, such as some of the most speculative investments. Examples include Facebook, Redfin, Affirm, and Upstart.
Because of the investment in FOMO, the hunt for the next hot investment is inherent. But we need to keep control of our peril exposure and our emotions.
Diversification is therefore important for the preservation of capital. You want to diversify your net worth in such a way that if one asset class decreases, another asset class increases or at least improves significantly. I would not attribute more than 50% of your net worth to any asset class.
Here are SBF’s thoughts on the whole situation that is still unfolding.
2) Turn funny money into real goods.
One of my classic articles is called How to get rich: turning funny money into real goods. I originally wrote the article in 2014 to remind readers and myself to occasionally spend our investment earnings on real goods and experiences. It had been five years since the global financial crisis and the good times were back.
Fun Money is any investment that has no benefits. Funny money is basically anything you can’t touch that doesn’t generate income or benefits. Stocks, cryptocurrencies and even bonds are considered fun money. Although the stocks and bonds that generate income are less.