November 9, 2022: The CZ Way Out 📉💥

Situation Normal: All FTX-ed Up

The Battle of the Billionaires has reached a decisive conclusion: SBF has lost at least one comma from his net worth.

db @tier10k

The Bloomberg billionaires index has been updated estimating SBF's net worth at $991m, down from $16b yesterday

Fintwit @fintwit_news

@cz_binance Mission accomplished

We presume much more fallout is likely to hit the markets as this shakes out. Tomorrow we’ll go into more depth on some of the on-chain effects of how things played out on-chain via Curve.

Today though, a few of the macro takeaways from the collapse of FTX.

CZ Reigns

The amount of influence CZ now has over the smoldering heap of ashes we once called crypto is absurd.

He’s been a good overlord so far, but beware the curse of being the main character in cryptocurrency.

Captain ₿TC 🥛 @Captain_BTC

First rule of crypto: Never become the main character on CT

Binance has conquered FTX. Its ultimate fate is a 👍 or 👎 vote by CZ and CZ alone.

Ethan @CryptoEthan

This man nuked 12 figures of global value just to teach one guy a lesson

CZ 🔶 Binance @cz_binance

Two big lessons: 1: Never use a token you created as collateral. 2: Don’t borrow if you run a crypto business. Don't use capital "efficiently". Have a large reserve. Binance has never used BNB for collateral, and we have never taken on debt. Stay #SAFU.🙏

However the saga resolves, it will have massive spillover effects on the market.

More Contagion

We’re very likely to see more contagion as the house of cards that was VC-Fi continues to collapse. These firms tend to collapse a bit slower than things play out on-chain, where collapses are nearly instantaneous. Keep an eye on your faves…

Frank Chaparro @fintechfrank

FTX investors: BlackRock Ontario Pension Fund Sequoia Paradigm Tiger Global SoftBank Circle Ribbit Alan Howard Multicoin VanEck Temasek

So as tempted as you may be to smash the buy button, prudence is advised.

degentrading @hodlKRYPTONITE

1/n - Contagion is here. Let me show you how we are COMPLETELY FUCKED.

DCF GOD @dcfgod

I so desperately want to click the buy button on the ethereum tokens rn But I know from the past unwinds this FTX one will have some massive side effects where others will be forced to sell large piles of tokens Think we'll get a juicier dip in the coming weeks

We may well witness a fourth horseman before the year is done.

Edgy - The DeFi Edge 🗡️ @thedefiedge

The worst events in Crypto history: • Mt. Gox Hack ('14) • The Dao Hack ('16) • Terra Luna Collapse ('22) • FTX sells to Binance ('22) • 3AC Collapse ('22) 3 of the worst events in in Crypto happened this year. If you survived this year, you've earned your stripes.

DeFi >> CeFi

Outside of the most hardcore degens, it’s unlikely anybody will internalize this lesson. It still bears repeating… DeFi >> CeFi.

Tarun Chitra @tarunchitra

👏🏾 centralized 👏🏾 exchanges 👏🏾 blowing up 👏🏾 are 👏🏾 not 👏🏾 DeFi 👏🏾 https://t.co/ZP6wq5FPyn

Noah Smith 🐇🇺🇦 @Noahpinion

@wmcintyre84 That DeFi is a giant house of cards?

DeFi proved resilient. Curve again proved immaculate and enjoyed a billion dollar day as a reward:

Users may soon have to default to DeFi by default, if no CeFi exchange survives.

Akado アルカード 👨‍🌾🌾 @AkadoSang

In other news $GMX just hit daily volume and fees ATH First time daily fees above $1M First time daily volume above $1B Congrats @GMX_IO

It’s not clear how many times VC-Fi needs to collapse for users to get the message, but DeFi solutions have a phenomenal track record by comparison.

Yet they’ll still keep playing with fire, because there remains the spectre of…

Unfavorable Regulation

dibby @dibbyverse

SBF had been pushing atrocious regulation.

beachball 🏖 @0xbeachball

if defi front ends were registered as broker dealers - we could’ve avoided this whole thing!! lol

Now his bill is dead, but quite likely to be replaced by something far worse.

The Block @TheBlock__

Bankman-Fried’s priority crypto bill ‘dead’ after FTX sells to Binance theblock.co/post/184436/ba…

Chef’s Kiss. It’s so often the accuser who deserves to be the accused.

BowTiedBull - Read Pinned Tweet or NGMI @BowTiedBull

SBF really pushed for regulation, told the SEC that defi was trash. In reality that guy was the one who needed to be regulated Think.

Stay SAFU frens…

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Disclaimers!