The FTX-Shaped Hole in Crypto

Rats on a sinking liferaft. [Altucher Confidential] October 11, 2023 [WEBSITE]( | [UNSUBSCRIBE]( FTX is an argument for transparency, decentralization, and self-custody… not against it. [Hero_Image] The FTX-Shaped Hole in Crypto [External Advertisement] Act Now- Debt Crisis Sparks Crypto Boom Our country is quickly approaching a "debt death spiral" that could bury future generations…The Fed is enacting rate hikes at levels not seen since before the 2008 global financial crisis. BUT – many investors aren't aware…As interest rates continue to rise, Bitcoin's price is set to SURGE. We've gathered 27 of the world's best crypto experts to give you the top picks and predictions for the upcoming crypto bull run. [Click here now to reserve your FREE seat](. [Chris Campbell] CHRIS CAMPBELL “1) What” - Sam Bankman-Fried “There’s still a Sam Bankman-Fried shaped hole in the world that now needs filling.” Michael Lewis, mega financial author, said that in his 60 Minutes appearance. Lots of people aren’t happy with Lewis’ stance on crypto’s least-favorite Wunderschatten in his new book, Going Infinite, wherein he basically gushes: While many suspect SBF of criminal behavior, no one can deny his eccentric and distinctive nature. It’s all just so unique! And fair enough. It’s a helluva story. And Lewis was given dream-job access. “FTX, nevermind Sam,” he said, “was the best collection of characters I’ve seen in a financial operation since Salomon Brothers.” For the record, contrary to popular thought… I don’t think Lewis has been a staunch defender of SBF. BUT I noticed he is beginning to backpedal a little. Perhaps it’s true he didn’t really understand what FTX was up to. Especially when he said (with his actual mouth) on 60 Minutes: “They actually had a great real business… if no one had ever cast aspersions on the business... if there hadn’t been a run on customer deposits, they’d still be sitting there making tons of money.” (Just like Madoff, it’s a great gig if you don’t get caught!) Now that the FTX case is fully underway, we’re gaining all kinds of insights into Lewis’ ‘zany cast of quirky characters.’ Very little of it, as expected, is flattering. But what else do you suspect from rats on a sinking life raft? Here’s what we know so far. FTX 101 Sam Bankman-Fried and Gary Wang own both Alameda and FTX. Alameda traded, and FTX was their exchange platform. Moreover, Alameda conducted its trades on FTX. Things went sour in 2019, when Wang gave a special permission to Alameda's FTX accounts -- a fancy function called “allow negative”. This allowed Alameda to withdraw more money than was in their balance. Sam justified this move by saying they could just use FTX’s earnings to cover any excess withdrawals. And yet, things didn’t go as planned. As Alameda continued to withdraw to cover losses, they quickly exhausted FTX's revenue. To temporarily solve this, Sam decided to count the value of the FTT token (a cryptocurrency he created) as part of FTX's revenue. Despite this addition, Alameda kept drawing more, eventually forced to tap into customer deposits. Gary provided Alameda a credit line of a staggering $65 billion, a huge sum compared to standard market practices. They used $8 billion of it. After some market downturns, with LUNA crashing and other financial mishaps, the total available funds in FTX decreased. When FTX's financial details became public and other investors began to withdraw, it sparked a mass panic. FTX couldn't meet all the withdrawal demands. FTX was cremated on the spot. SBF tweeted “1) What” That’s it in a nutshell. Barrons: A.I. Supplier Set For $100 Billion Sales Boom Nvidia’s little-known supplier is set for a [$100 BILLLION sales explosion]( …and it’s thanks in part to this mysterious device you see here: [Click here to learn more]( According to our research… This $100 billion sales boom could even turn this little-known supplier… …into the [the next trillion-dollar stock](. To see how to take advantage of this little-known supplier – before it’s $100 billion sales surge —— [go here now.]( The #1 Lesson We’ll get into the juicy details -- and surprising revelations -- emerging from the case tomorrow. (Hint: Everything is beginning to revolve around CEO of Alameda Research, Caroline Ellison. And she’s out for blood.) We’ll also go into WHY I don’t think FTX will crash the crypto markets. (Again.) Lastly… Many mainstream pundits wish to frame the FTX trial as “crypto is on trial.” FTX was not “crypto.” FTX was everything wrong with the current banking system -- on methamphetamines. (Literally and figuratively.) Don’t worry. I’m not going to turn this into a rant against fractional reserve banking. My philosophy is simple. In the spirit of Hayek… Give the people the freedom to choose. Instead, regulators not only shoot down viable alternatives that would reduce risks to the system… They also refuse to [allow easy access to full-reserve banks](. (If “too-safe” banks threaten the entire system, it might be a problem of the system, not the too-safe bank.) In short… FTX is an argument for transparency, decentralization, and self-custody… not against it. More tomorrow. Until next time, [Chris Campbell] Chris Campbell For Altucher Confidential Biden Admin Furious Over This New “Alternative” Currency Take a close look at this photo: [Click here to learn more]( [What you see here is a new “alternative” currency that’s taking America by storm…]( One which could ruin Biden’s CBDC plans. It’s already popping across the nation… including Utah, New Hampshire and Nevada. [If you’re worried about Biden Bucks then you must watch this short 2-minute video that breaks down how this “alternative” currency works…]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@altucherconfidential.com. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. 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