From Orgies to Bankruptcy...

Welcome to my Big Mac crypto newsletter where I share 1 BIG crypto news instead of 3.

Last week was one of the most fucked up weeks in crypto history. 

It’s full of bankruptcy, rumors, hacks, theft, gossip, Twitter fights, and orgies (that’s right)

Usually, I write the world’s shortest newsletters that can be read in under 30 seconds, However, today’s newsletter is going to be 2 minutes long.

Because again…last week was one of the most fucked up weeks in crypto history and I want to explain what exactly happened.

But before I go on to share last week’s crypto news,

Here are a few key terms you can refer to while reading this newsletter:

FTX - FTX Exchange - a giant crypto exchange born in silicon valley, earning billions

FTT - Tokens of FTX, stock equivalent of FTX

Alameda - a giant trading company, a sister company of FTX, earning billions

SBF - CEO of FTX, MIT graduate

Binance - FTX’s chief rival company - another crypto exchange 

So what happened?

In November 2022, Coindesk (a leading crypto newsletter just like mine) released a bombshell report,

Showing that Alameda’s 41% of assets are tied up in FTX. Although there’s nothing technically wrong with it, 

It raises a few concerns about how stable FTX really is.

Then recently, SBF and CZ (CEO of Binance) got into a heated Twitter argument which (probably) pissed off CZ when he decided that he was going to sell roughly $530Million worth of FTT tokens. 

This caused shockwaves of panic in the crypto industry and led the price of FTT to drop significantly. Because customers started to pull out their money which was an estimated $6 Billion in withdrawals which FTX struggled to pay.

FTX started breaking because apparently, they didn’t have cash in the bank to refund all that amount. They weren't as strong as they claimed to be.

Then the next day FTX asked for some bailout help from Binance and Binance offered to buy FTX (a multi-billion dollar company) for a whopping $1…that’s right.

But shortly after this announcement, Binance backed out because they found that FTX mishandled customers' funds. And CZ said in his words, ”FTX was beyond our help”.

That’s how deep of a pit FTX was in.

This caused further panic in the market and within 24 hours SBF’s 94% of net worth vanished.

SBF tried asking for some bailout money help from other companies like Coinbase CEO Brian Armstrong but failed.

Then on Friday FTX filed for Chapter 11 bankruptcy and SBF resigned as a CEO (RIP).

SBF started apologizing on Twitter that he “fucked up” and said should’ve done better.

But we don’t know if that apology was sincere because of 2 reasons:

1. Reuters report suggested that earlier this year, 

SBF transferred $4 Billion of customers’ funds from FTX to Alameda without telling anyone, after Alameda was hit with a series of losses.

2. Right after the withdrawals were paused for the entire world, someone restarted withdrawals but only for people living in the Bahamas (this is where CZ and his team lived) and hacked about $600M from FTX before the hack was stopped by the local authorities.

I wonder who was the hacker and why was it specifically reinstated in the Bahamas.

Since the hack, SBF is on the run and nowhere to be found.

Also one last thing...it turns out that all the partners of FTX and Alameda were in a romantic relationship as they ALL lived in the penthouse.Shit doesn't get real than this haha. 

Look guys it’s November 2022 and at least $2 Trillion has been hacked in crypto.

At this point, I don’t trust anyone in crypto except the creator of Etherium (Mr. Vitalik). If he does us bad, I’m out of crypto lol.

Disclaimer: This newsletter isn’t here to give you any personal advice but to share what is happening right now in crypto market. 

I write this newsletter to keep you informed about what's happening in the crypto market so that you can know your potential risks while investing in crypto.

And always remember that even though some companies are doing billions of dollars of revenue daily, it doesn't mean they're honest. So always do your due diligence before investing your money in crypto.

Also, I try to make my newsletter as short as possible for you readers so that you can read and finish this newsletter while drinking your morning coffee.

Today’s newsletter though was stretched for about 2 minutes read because I wanted to share exactly what unfolded last week in crypto so that you are always informed.

Thank you for spending your time reading this long newsletter.

I appreciate you all.

Alright!. That’s it for today.

See y’all soon.

Rohit

P.S. Do you like this format of newsletter where I share just 1 big crypto event instead of 3? Reply here to let me know.

P.P.S Do this to make sure that you don't miss important crypto updates and instant buy/sell indicators.