Unsurprising...
But also really surprising when you think about what that means on an attack vector level. We already know we shouldn't leave money on exchanges. This exchange left money on an exchange... so... it's a nested derivative of counterparty risk? Who in their right mind would ever build something so asinine?
FTX got hacked
Everyone assumes it was SBF or another insider...
For obvious reasons.
Imagine a prisoner escaping in the middle of a lockdown when it is the hardest time to escape. Same vibes.
We'll notice that Bitcoin is simply trading flat at $16900 given all this extra information. Volume is still pretty high, but dwindling. Normally I would say that's a bad thing, but in this case I think the volatility comes from people rage dumping the asset. This may be one of those situations where we only start to recover after the rage dumping is over.
FTX audits were worthless
Shocking.
Binance FUD
Exchanges are coming forward and being transparent with their assets right now, but everyone is looking for a reason to assume that exchanges are not solvent. People complain that Binance has "too much BNB" or crypto.com has "too much Shib".
Think about the logic of these statements.
Binance can't have too much BNB because they don't even owe it back to the customer. BNB is a premine, remember? It's literally their token. As for crypto.com holding 20% Shiba Inu... well... guess what? If their clients are owed 20% Shib then they need to hold 20% shib... or else they are insolvent if Shib goes up and they don't have enough tokens to pay back their clients. Think about how ironic it is that people are saying crypto.com is insolvent for the exact reason why they are solvent. The irrational behavior we are seeing in the wake of the FTX drama is a sight to behold.
Assets vs Liabilities
Binance and crypto.com have shown us their assets, which is cool... I guess... but it means nothing. We don't know if they are solvent unless we know what their liabilities are. How much of each coin do they owe back to clients?
Interestingly enough, this information is impossible to trust. It's not on the blockchain and it can't be verified in any way. Even if Binance allowed themselves to be audited by a third party, it wouldn't matter. They could just create a black book that they do not show to auditors.
Solvency
An exchange is SOLVENT if and only if their liabilities and assets match. If they owe clients a billion Shib, they better have 1B Shib on the asset ledger. What people are intrinsically assuming with these reserve reports is that Binance is using BNB as collateral for another asset and crypto.com is using SHIB as collateral for another asset. They aren't. Funny how they tried to put everyone's mind as ease but people just want to be insane right now.
If SBF had backdoors installed then it's easy to see how they are funneling money out of the exchange and blaming a "hacker".
COOK THE BOOKS!
SBF bad at LOL
Something I found out yesterday before even more shit hit the fan today is that SBF plays League of Legends, and he's really bad at it. In fact he was caught playing it during business meetings and investor pitches.
https://www.op.gg/summoners/jp/TSMFTX%20SBF
ELO HELL!
He's played hundreds of games and is still in Bronze 2.
wow... so bad.
To be fair LoL is a very hard game.
I should be way better at it considering how much I've played.
I'm a gold player and I made it to plat once.
It's a huge time commitment considering games take 45 minutes and if your winrate is 60% (which is good) you basically have to play dozens and dozens if not hundreds of games to rank up.
What I really wanted to say here though is that people get the mindset in these competitive games of this idea of "ELO HELL". This is where people don't take responsibility for their own actions, and blame their teammate for the fact that they can't rank up.
It is an extremely common mindset, and it's easy to see why. If you have one teammate that "feeds" and gives the other team a bunch of gold/XP, it becomes very difficult (if not impossible) to make a comeback. People tend to remember the times when other people messed up but not themselves.
The reality of the situation is that if you are the reason your team won, then you'll rank up. Even if you are the reason your team won one out of ten times... that's 10%. This will change your win/lose rate from 50%/50% to 60%/40%. Most people do not consider 10 games at once; only the current game they are in and raging about.
Obviously I've talked about LOL way too much in this post... I just thought it was hilarious that the "billionaire genius" is a bronze league hero. LOL, if only we had known before (this would have been obvious!)
Still sick
I am on day 8 of my cold, and holy hell it is the worst cough of my life. I can barely talk today and have almost completely lost my voice. The glands in my neck are like blown out from all the coughing. It's super fun.
I guess I have to assume at this point that my immune system is pretty frail. Every time I get sick I feel like I'm going to make a quick recovery, but instead it ends up lasting forever and then I get a lung infection that lasts another two months. Not looking forward to it.
Every time I look up how to make my immune system stronger, the Internet just keeps reminding me that I'm fat and lazy. lol. I haven't sweat from physical activity since covid started. Gained back the 50 pounds I lost in summer 2019 over the last few years, eat a ton of fast food and takeout. Yeah... not great.
There's a gym down the street that we looked at a few days ago but it's not that great and the membership cost is more expensive than anything I've ever payed. The huge advantage is that it's less than a mile away from where I live so I would actually use it often. One day, fam!
Fuck it we do it live
I've heard a rumor that Elon Musk isn't running a testnet for his Twitter changes. He's running everything in real time directly on the servers. LOL... this is a recipe for disaster for a platform as big as Twitter. They've already been caught storing credit card numbers as plain text. Something big will break in the coming weeks.
Cramer cash out
https://twitter.com/CNBC/status/1591230508771725312
- CNBC
Thank you Jim Cramer... telling everyone to sell crypto while we still can... such good news. Love to see it.
It's also worth noting that FTT tokens are still being traded for $4 a coin and we are all kind of idiots for not shorting it. There's no way it doesn't crash to zero. This clusterfuck can not be fixed... by anyone.
https://twitter.com/digitalassetbuy/status/1591085876825976833
- digitalassetbuy
https://twitter.com/Hedgeye/status/1591240664779743232
- Hedgeye
Gary Wang (CTO of FTX) is the FTX hacker.
WARNING: Do not open your FTX or http://FTX.US apps. Do not update them.
Story is developing but some are saying it’s compromised.
Conclusion
Oh... my... god... the dust is not settling, boys and girls. The oracles told us that this Blood Moon would be a huge event... and it's still happening. Aftershock after aftershock new information comes trickling in. Twitter is fire right now. Too much to keep up with.
And was is Bitcoin doing? Just trading flat like an overmedicated psych patient. $15500 was the bottom... pretty sure. As soon as rage-dump pressure subsides we see what happens. Luckily we still have 11 more days to New Moon so there is still time for all this madness to calm the fuck down.
Bottom Line:
Jim Cramer just told us to sell 100% of our crypto.
Thank god.