FTX Warns of Bankruptcy Without Rescue for $8 Billion Shortfall

 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

https://www.bloomberg.com/news/articles/2022-11-09/ftx-investors-told-that-without-more-capital-bankruptcy-likely


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

https://www.bloomberg.com/news/articles/2022-11-10/jpmorgan-strategists-warn-of-cascading-crypto-margin-calls-due-to-ftx-crisis


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 

https://www.bloomberg.com/opinion/articles/2022-11-09/bankman-fried-s-ftx-had-a-death-spiral-before-binance-deal


Crypto Has Reinvented Bank Runs

https://englundmacro.blogspot.com/2022/11/borsen-9-november-2022.html




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