Binance bailed on FTX takeover
“I f---ed up,” Bankman-Fried told investors on the call, according to people with knowledge of the conversation. He said he would be “incredibly, unbelievably grateful” if investors could help.
Bloomberg 9 November 2022
JPMorgan Team Says Crypto Markets Face ‘Cascade’ of Margin Calls
JPM strategists say crypto deleveraging set to take few weeks
Their analysis sees potential Bitcoin floor of around $13,000
Bloomberg 10 november 2022
FTX - So how could this happen? I don’t know, but let me speculate a little bit
Let’s start with Coinbase. Coinbase Global Inc. runs a cryptocurrency exchange. When FTX.com, one of the largest crypto exchanges, was instantaneously vaporized yesterday, Coinbase put out a statement, the gist of which was “don’t worry, we are not going to be instantaneously vaporized.” The part that I want to focus on is this paragraph:
There can’t be a “run on the bank” at Coinbase. As you can review in our publicly filed, audited financial statements, we hold customer assets 1:1. Any institutional lending activity at Coinbase is at the discretion of the customer and backed by collateral. We have no gating for client loan recalls or withdrawals.
Matt Levine Bloomberg 9 november 2022
Crypto Has Reinvented Bank Runs