The collapse of the utility token FTX (FTT) is not caused by a lack of liquidity, but by the actions of investors who have experienced “fear” due to the current market situation. This was stated by the founder of the cryptocurrency exchange, Sam Bankman-Fried, in an interview with Tiffany Fong on November 16 (published on November 29).
“I think FTT had real value. […] In many respects [токен] it was more legal than many other digital assets. It had greater economic backing than other tokens. […] Illiquidity was not the cause of the crash. This is a huge correlation of events during market moves, especially when they are driven by fear of the position itself,” said Bankman-Fried.
In the face of the crisis, the exchange stopped withdrawals for all customers. Later, the company opened up this opportunity to users in the Bahamas. At the FTX step explained the need to comply with the requirements of the local regulator.
In a conversation with Fong, Bankman-Frid admitted the measure was due to a reluctance to “piss people off” in the jurisdiction where the platform is registered.
“The day before I warned [регуляторы Багамских Островов]that we will. They didn’t say yes or no. They kept quiet and then we did it. All because it was very important to the future of the exchange. […] You don’t want to be in a country where there are a lot of evil people, and you don’t want your company registered in a country where there are a lot of evil people. […] We have tried to reassure citizens,” he explained.
Bankman-Fried called the fee for FTX International clients “less.” They should receive 25 cents for every dollar of assets frozen on the platform. US users of FTX will receive funds on an individual basis.
The founder of FTX denied the information Reuters who allegedly used a backdoor into the exchange’s system that allowed him to transfer assets to Alameda Research accounts.
“I don’t even know how to program. I have literally never opened FTX code,” she pointed out.
Bankman-Fried also spoke about the crash investigation with unauthorized withdrawal of goods from the platform on the night of the filing by the company statements on insolvency.
“I have narrowed down the suspects to eight people. I don’t know which of them, but I’m pretty sure it was a former FTX employee or someone who installed malware on the former employee’s device,” she said.
Bankman-Fried said he failed to find out more because he lost access to the platform’s systems.
In the second part of the interview (the conversation took place on November 20), the founder of FTX said that the collapse of the company was caused by a combination of several events at once, for which he had to be ready.
“It was a combination of a spring crash when asset values fell 50%, an over-correlated scenario this month – within two days, relevant asset quotes fell 50%, a ‘bank panic’ in FTX, while the size of the fringe position was much bigger than it looked,” he said.
Fong asked Bankman-Fried about possible developments without statements Binance CEO Changpeng Zhao on selling FTT on the open market due to “recent revelations”.
“I think the situation would certainly be much more stable. We would have had more opportunities to seek liquidity. However, there would still be too much leeway in the system. I think something like 50/50,” she replied.
Remember, Zhao it allowed the ability to buy FTX assetsstating that some of them can still be saved.
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