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This day 3 years ago, Coindesk issued an article about Alameda Research balance sheet.
This cascaded into FTX, the #2 CeX of that time, to file for bankruptcy, in a matter of 9 days. 9 freaking days. The bank run was instant and enormous. The withdrawals from Sunday afternoon to evening (of 6th Nov) were roughly $5B (from $1B to $6B).
If you were not a part of crypto sphere that day, you cannot even imagine the level of impact this event had, especially considering it was mere 6 months after the Terra collapse. The level of fraud, lack of financial oversight, disregard for care for customer funds, and overall lax approach in both FTX and Alameda was stunning.
BTC was heavily in bear market then. But the drop of over 25% (from $21k to $15.700) over 4 days left everyone in the state of panic. No one knew what was next.
Yes, BTC is making new ATHs now, and SBF is in prison. The crypto regulation is here, and things appear to be bright. But don't forget - bear markets are brutal, and all of this can change in a second.
Keep custody of your funds, and treat CeXes like public toilets. Go in, do your business, and get out.
TL; DR: Not your keys, nacho cheese. Bear markets suck. 3 replies
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