In case you missed it, Crypto is exploding right now, but is exploding in like a very negative way. Like it's going down down. It's not exploding to the moon, it's exploding to like really the bottom of the ocean. Recently you might have been hearing about FTX and finance and that kind of craziness. Well, we have some major major updates for you Now to get to those updates: I very very quickly. Want to go? Really? just. we'll speed run the history of the current situation. FTX You've probably heard of it because it was the one company that, while everyone else was seemingly struggling ever since the Terra Luna Blob Anchor Celsius Voyager 3ac. Uh, Blockfolio Like It just went on and on and on and FTX was the strong one buying them all. So you probably heard of them and now you might be thinking, well, that seems to have taken a pretty crazy 180. So we're basically going to be talking about the death of FTX and also the current real-time crash of Crypto. Now obviously it's super easy to. Monday Morning Quarterback I'm like you. We just see all the success of FTX but just to paint a picture because we're here too. Monday Morning Quarterback Let's see if we could connect some of those dots of where things went a little bit awry. If you go back to August, you'll know that the CEO at that point in time the co-ceo of Alameda quit and Alameda is a Crypto hedge fund also owned by Sam Bankman Freed who for the remainder of this all business is calling SPF because we don't have that kind of time. It's Sam Bakemanfreed SBF So anyway, he was the CEO of both of these of Alameda and also FTX and for a little bit there people were saying they seem to be closely intertwined mind is that right? But because he was just so dominant and so powerful, no one really stopped to ask any hardcore questions. So anyway, the co-ceo of Alameda stepped down in August. Fast forward to September and then all of a sudden the President of FDX stepped down. So two important important figures step down and at the time everyone's like wait, what and then like no, no, we're just doing better things with our life, not an issue whatsoever and everyone's like oh, okay, and then right after that in October there was a probe from some sort of Texas regulator into FDX and everyone just kind of assumed oh, this is like another thing the way right now the SEC is pretty harsh on Crypto Library just lost their case Ripple Still in their case, everyone's just like it's just another crypto related thing. so it was kind of easy to miss all of this. Now in reality, this is a crazy, crazy story of taking advantage of your clients, your investors and really just pure old greed. just extreme extreme leverage and not paying attention to any of your risk. That pretty much brings us to the start of November where we are right here: Tensions between Crypto Giants FDX Finance Spitting into the public view even though they're spilling into the public view I Think this is very important and I wanted to include this clip because out of all those things I just listed, you might be scratching your head. Well, if they're spilling into the public view now, why weren't these things apparent beforehand? Why was everyone just throwing money in? I Mean we're talking Black Rock we're talking Sequoia we're talking Paradigm we're talking freaking Tom Brady Well, this is how we all missed it. This is exactly how it says: FTX has a responsibility to seriously consider stepping into the time to save companies. Why did you have that sense of responsibility? It's not going to be good for anyone long term if we have real pain, if we have like real blowouts and uh, and it's not fair to customers and uh, it's not going to be good for regulation. it's not gonna be good for anything. and so from a longer term perspective it's just that was what was important for for the ecosystem is what was important for customers. It was what was important for people to be able to operate in the ecosystem without being terrified that unknown unknowns. we're going to blow them up somehow without being terrified that unknowns, unknowns would somehow be blowing them up. Talk about some crazy foreshadowing. I Mean the authors of this reality like they know they're very classic writing techniques, but that really dives into it. Think about it psychologically. People just want to be like oh, this is the guy standing up for us. This is the guy who played it right. He has the money. He's gonna backstop it because crypto wasn't doing the best. we hit 69 000 in November of 2021. Obviously it's been a pretty brutal sell-off Everyone wanted this to be true. Everyone wanted Sam Bankman Freed to be the good guy who's not only going to fight for the little guys, but really kind of keep the crypto ecosystem at least in the short to medium term kind of going. I Personally think that's why everyone was like easy to overlook it. We had certain blinders on that maybe you just didn't even know was a Blinder Unfortunately, those blinders were ripped off a couple days ago. Divisions in Sam Bateman Freed's crypto Empire blur on his trading Titan Alameda's balance sheet. So I know this gets like a little bit maybe specific in the world of Finance but I Promise you, if you just stick with me, you're gonna understand everything. As of June 30th of this year, the company's assets amounted to 14.6 Billy its single biggest asset, 3.66 billion of unlocked ftt the third largest entry on the asset side accounting for The Ledger a 2.16 billion pile of Ftt collateral. So right there. just under 6 billion. 6 billion with a B is in one way or another related to Ftt. If you've never heard of Ftt before, this is Ftx's native token. Basically, they were functioning as their own. Central Bank They created money out of the ether and then they put it on their books. So they had 14.6 billion in assets, 8 billion in liabilities, and almost 6 billion of it was just their own funny money. Well, this report came out in early November and then all of a sudden people started to do a deeper dive. Remember how I said Ftt accounted for about 6 billion of their assets? Well, that's weird when Ftt itself has a market cap of 3 billion. So right away Flags started to fire off. I've previously done some videos I'm sure you've already seen this on Twitter but this is what led the CEO CZ of Binance to make a tweet that was eventually the downfall of FTX And also if you ask me, this is probably one of the most Cutthroat brutal business events we have seen not only this year, but I would say probably in the past couple decades Binance's CEO CZ is not messing around. So basically he saw all of this and then he went out. He said hey, we're selling our Ftt and then a follow-up tweet he said learning from Luna and everyone's like whoa, true or not the fact that he Associated this with Luna the thing that really has been keeping Crypto down and blew up everything Celsius Anchor Voyager 3aoc The list goes on and on and on. The fact that he associated with this after this information came out. this was such a brutal one-two punch that eventually led to not only a KO but if metaphorically I Had to explain what happened here. Basically one two punch, he's down and then he took a knife out of his pants and slit his throat. It was so incredibly brutal because it prompted what's referred to as a bank run. This was a digital Brink run and from there you see all the reserves just dwindling. There was like billions was getting extracted because people were panicking, They didn't want to lose their money and it got insane. It got so insane it led us to this: Finance is strongly leaning towards scraping FTX Rescue takeover. After a glance at the books, it was so bad no one wanted to deal with FDX The rumors are that they were going to everywhere in Silicon Valley to see if anyone would give them money to stop this absurd liquidity. Crunch And everyone said no, Go f yourself. This is so bad. The holes in your book as of now as of the time I'm filming this anywhere from six to ten billion dollars. That's the holes in their book right now and most people are centering around 8 billion. So picture this: This one guy publicly destroys your entire company and your life. We're going to be talking about his own financial situation in a second. It's so bad that you have to go back to him and be like here. Can you take the leftovers of what you destroyed? Please? Like maybe so they were going to get into it. And then Binance looked into this situation and I don't even think they realized how bad they destroyed the company, they did some DD They had a letter of an intent that lasted for basically one day and then they're like no, we are out So this is the biggest news this is as of today obviously I have the other videos feel free to check it out but this is the major day I Just want to give you the rundown. The major news right here. Binance had a letter of intent was looking into getting it and then they were like whoa whoa whoa whoa whoa whoa. we're done So and they pulled it out and it basically led to this: Bitcoin vomiting from 21.5 000 to right now sub 16 Ethereum Seventeen hundred to a thousand ftt. That token we were talking about went from 26 dollars to a dollar Thirty even Solana is vomiting from 36 all the way down to 14. obviously it is a bad bad situation and if there was only one one thing that we could have all known, it had to go in a bad Direction Well as always, all roads lead back to the inverse. Kramer JP Morgan of this generation Sam Bankman Freed's FTX yes, he's literally calling them the Warren Buffett of Our Generation average fees per transaction across the industry. We should have known by 50 percent. To be fair though, it's always fun to bag on. Kramer But much of the world right here Fortune The next. Warren Buffett Everyone was just throwing as many accolades as they could at this guy and he kind of told us himself. I Mean, listen to this. This is in front of a room of lawmakers. I Think that I'll say is if you look at what precipitated some of the 2008 financial crisis, you saw a number of bilateral bespoke non-reported transactions happening between Financial counterparties which then got repackaged and re-leveraged again and again and again such that no one knew how much risk was in that system until it all fell apart. If you compare that to what happens on FTX or other major cryptocurrency venues today, there's complete transparency about the full open interest. There's complete transparency about the positions that are held. There is a robust, robust, consistent risk framework applied, and we're excited to work with the Cftc on our U.S license and regulated venue. Um, to bring a lot of this. Uh, last thing that I'll say is if you look at so he's saying everything you need to. but then behind closed doors is the complete opposite. Look at this. FTX is some mutant combo of lemon, liquid, illiquid excuse me, under capitalized and MF Global illegally used client funds to fund its own terrible Investments This is what FTX did and it's the same guy who said that in front of lawmakers have sounded all good, like it's great. we're playing by the books, we're protecting everyone and that's how we got so many people to invest. and man oh man. But to be fair, he told us the truth. Bakeman Freed warrants some crypto exchanges already secretly insolvent. He just didn't add a little bit on that. it was him himself he told us I mean honestly, I don't even know how much we could come after the dude. He said it right here. they are secretly insulted and I guess he was literally just giving us Insider information about FDX he's like pointing, he's like I'm I'm the one who's secretly insolvent. wild, wild wild And then that leads us to the grand finale of today. Finance backs out of the FTX rescue, leaving the crypto exchange on the brink of collapse. In fact, Bloomberg said it was worth one dollar. Binance says it will walk away from the deal to buy FTX Our Hope was to be able to support Ftx's customers to provide liquidity, but the issues are beyond our control or ability to help. That's verbiage from the number one crypto exchange on the entire planet. Binance pulls out of deal to acquire rival crypto exchange. FTX the rapid collapse of FDX built by the billionaire Sam Bateman Freed suggests that no company in the free Wheeling Loosely regulated crypto industry is safe The Cryptocurrency Exchange Binance has pulled out of the deal to save its rival FTX A blow to investors who had hoped that the agreement would help them retrieve funds after FTX collapsed this week Every time a major player in an industry Falls retail consumers will suffer. We have seen over several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misused user funds will be weeded out of the free market by the free market. Well, I don't want to hold my breath but I mean I hope we get there. but I should say that I don't want to hold my breath And obviously this is the big commentary from mainstream Finance media on the matter. So Binance's deal to buy FTX is officially off the table. We have a came in here from a Binance spokesperson. They say as a result of corporate due diligence as well as the latest news reports regarding mishandled customer funds and alleged U.S agency investigations, we have decided that we will not pursue the potential acquisition of Ftx.com They go on to say in the beginning Our Hope was to be able to support Ftx's customers to provide liquidity, but the issues are beyond our control or ability to help. Scott This had been a non-binding letter of intent, but the deal not going through according to that statement. So Binance is dealed. So just to be clear, that was the official statement from Binance after they backed out of the deal today. Just wild pandemonium. and I want to share my thoughts on maybe a better way to kind of handle this? Uh, maybe more of a fair way. And I want to get your thoughts. But before that, a couple other extra things to share. FTX Pro By Regulators over handling of client funds and lending. This isn't a company just going bus this. This is now becoming very very big in terms of the justice system. It is absolutely wild. And also to add on top of it, the past 36 to 48 hours for Sam Bakeman Freed have been financially brutal. He's was worth over 15 16 billion and now he's worth negative monies. FTX CEO has gone bankrupt. He personally still owes over 650 million to lenders. Imagine that imagine in one to two days getting publicly ripped apart and then your own financial situation. Not only were you I mean at one point a billionaire God Doing whatever you want and then in a day and a half going deeply, deeply in debt, our wall like SEC is now investigating you. Absolutely insane. Truly, truly insane apparently. Michael Lewis Famous finance writer was writing a book on the success of FDX. He was at the Super Bowl with them and had multiple trips to the Bahamas to cover. It Looks like he just got his ending. The problem with crypto as in most things is the leverage. If you don't know how much Leverage is in crypto, you don't know anything about crypto no matter how much else you think you know. and this was from Anonymous June of 2021 and this is from Michael J Bury obviously famed from The Big Short And it's interesting to me that so so much of this is really common lessons that you need to learn in the market. Whether you're looking at FTX right now or the housing situation or Lehman Brothers or just any craziness in any markets that have ever existed in mankind, it comes down to risk and reward and time and time again. We get these stories of people who are overly greedy and they use leverage and they blow their risk out of the water and it might work for x amount of time. Everyone might think you're awesome and you're the smartest person in the room such as Enron and then it blows up in your face whether you're a big big business or all the way down to an individual. Trader Everything in the markets boils down to that. What is your risk and your reward? Now to share my opinions on the entire situation: I Mean this is just ridiculous. I I mean I very very much hope that some big player steps in and honestly, I would argue to recoup all the small people on FTX And what I mean by that is anyone whose account was let's just say below, a quarter million dollars because those are the people who it's truly impactful to their life Like that's the difference between them having food on their table or not. If you're a big player, whatever, you can suck up the L and you could try to figure it out in a court and they're in the past have been unique solutions to this. For example, maybe whoever buys you, you get some sort of debt token and then as time progresses you get fees from all the transactions and eventually that business would buy the debt tokens back. and whoever needs to get the leftover money, you get your leftover money. So I think there are unique Solutions I am No, by no means some like bankruptcy expert. these were just some ideas that would be floating around on the internet and I wanted to share with you because that they were really really smart ideas. But overall, as I showed you, crypto is currently vomiting, this is not good whatsoever in the long term. I Think some crypto. Will Survive not all crypto. I'm still mainly paying attention to Bitcoin I'm also paying quite a bit of attention to Solana I Wanted to short Ftt today, but I couldn't even on Kucoin and earlier today was at 390 and right now it's trading at 190. I would already be up a massive percentage, but that just shows you how nuts things are. So for me, the main crypto projects I'm really talking about Bitcoin I'm just looking to buy the dip I think with all this, I'll be able to get a more Bitcoin probably closer to ten to twelve thousand dollars. That's my personal estimation. We'll see how nuts things get, but I'm still in this for the long term. I Want to be very clear with that and to wrap this part up I Want your thoughts? please? In a comment below, let me know what you're thinking about crypto right now and all this pure chaos and pandemonium.