Sam Bankman-Fried, embattled former CEO of cryptocurrency exchange FTX, is seeking funding to save the platform. However, the effort was met with mixed feelings amid concerns that the funds were being misused.
In addition, other evidence indicates that cryptocurrency exchange assets are not as liquid as they are made out to be, according to Kaiko researcher Conor Ryder. As of November 16, Ryder pointed out That FTX’s “liquid” assets had a bid depth of 2%.
Specifically, the researcher notes that the combined bid depth for Polkdadot (DOT), Pax Gold (PAXG), and TrueUSD (TUSD) was just over $7 million, which is about 2% of the bid depth and indicates that these cryptocurrencies “ It should probably be “classified as illiquid”.
They have $28 million in DOT, $23 million in PAXG, and $12 million in TUSD that they have rated as liquid, according to the FT. As of this morning, the 2% bid depth for the three tokens combined is just $7.1 million — perhaps they should be rated non-liquid. liquid.
FTX Consumers ‘Probably Get Nothing’
Prior to the $477 million hack, FTX had less than $1 billion in liquid assets, while it had $9 billion in liabilities. On November 12th Covizela pointed out:
“It’s much worse now. Customers are unlikely to get anything.”
The cryptocurrency industry is still reeling from the shock of FTX, formerly the largest crypto exchange, filing for bankruptcy and stepping down its CEO. Sam Bankman-Fried seeks funding to save the platform; The initiative was met with mixed feelings due to concerns that the funds would be misused.
The creator of the cryptocurrency meme Dogecoin (DOGE), Billy Marcus, has expressed concern that raising funds to bail out FTX would give Bankman-Fried the opportunity to “commit massive fraud again.”
In addition to Marcus, a number of notable people have discussed what they think of Bankman-Fried. Elon Musk, the CEO of Tesla (NASDAQ: TSLA), was one of those people, and he said his first meeting with the company’s founder resulted in a “nonsense red line.”
Elsewhere, Robert Kiyosaki, author of “Rich Dad, Poor Dad,” referred to Bankman-Fried as “the Bernie Madoff of the crypt,” as reported by Coinphony.
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After FTX’s “liquid” assets became nearly illiquid, the data appears for the first time on Coinphony.