FTX Disaster! What Next?

Question

G'Day folks,

What a disaster.

Who lost their A$$ on FTX?

Built up a large position in a variety of tokens since 2017.

As I traded, moved from one exchange to another and settled on FTX for the time being.

Was 1 day late in being able to process the withdrawal.

You win some, you loose some I guess.

Would have preferred tokens going to ZERO than loosing the game in such a way.

Any of you crypto folks believe in potential asset recovery?

I know it's a long shot but thought I would ask.

Logically, since I was down about 90% anyway during this crypto winter my mind is saying double down because I got nothing to loose (What's another hit going to do).

My heart is saying "put your tail between your legs and strut off home" haha

Thanks

Kenneth Woodruff · Answer

I am an avid crypto investor since 2017 myself. Cold wallets are the only way to go from here.  In addition, focus on the true decentralized side.  Bitcoin is a strong long play, ETH probably as well, I have a large position in both.  Bitcoin and blockchain have a bright future.  The current atmosphere is tough and more will fall, we just need to avoid as best we can.

Having said that, the FTX disaster will cost everyone who had assets there, no chance of a return.  I believe there is a much deeper fraud than we have seen and this is the tip of the iceberg. SBF is in no way a good person and he played the "game" and now will pay dearly.

Alex Russell · Answer

Hey @Engelo Rumora, It definitely is a very unfortunate situation for many and hopefully you can spring back from this, but the likelihood of you getting your money back is extremely slim, if at all. The new CEO recently mentioned that FTX customer funds were used to buy homes for employees and advisors, also had seen a report that FTX personally loaned Sam $3B. Where this money went is the golden question. Can't also leave out the fact that Sam donated 100s of millions from FTX customers to politicians and related organizations.

It is still too early to see the full extent of this damage, but I have a feeling there will be much more pain in the crypto industry in the near-term.

I personally would move all crypto off any exchange and into a cold wallet for the time being.

Engelo Rumora · Answer

Hey peeps,

If anyone got tangled up in this S#%@ show and you don't want to wait for the bankruptcy proceedings.

Just sold my claim to these guys for 72% on the dollar - https://www.ftxcreditor.com/

They are legit and literally after a 30min Zoom verification call sent me the funds in USDC to my wallet.

You're welcome

Leo R. · Answer

@Engelo Rumora  sorry to hear you were affected by the FTX debacle.

This is an interesting topic, and I think it's especially interesting on a real estate-focused platform like BP...

The reason being: in my mind, real estate and crypto are opposites in so many ways. For instance, they're opposites in terms of liquidity, physicality, age of the business model, volatility, etc., etc.  ...and, my impression is that they're also opposites in terms of the mindsets of the investors (e.g.; many RE investors have comparatively longer time horizons, and I would assume that most RE investors have a lower tolerance for risk).

I'm a RE investor, and don't have any crypto, but I have plenty of friends who hold a lot of crypto, and we've discussed crypto endlessly...

At the risk of sounding like a luddite, even after years of discussions and reading countless articles, I still don't feel like I have a good understanding of crypto.  ...and frankly, I'm skeptical of people who claim to have a thorough understanding of it (yet, there are no shortage of self-proclaimed "experts" who describe crypto with the confidence of someone predicting a sunrise!)

...RE, on the other hand, is comparatively simple to me--I can wrap my mind around what makes a property valuable, what factors affect the market, the advantages/disadvantages of various RE investment strategies, etc.

Don't get me wrong--I'm not trying to knock crypto.  I've long said that my crypto friends will probably have the last laugh when we're all 80, and they have quadruple my net worth from cyrpto investments. Plus, it's not like RE isn't also getting hit right now--many people holding RE will probably take a significant hit to their net worth this year.   ...but, at the end of the day, I don't feel like I have a thorough enough understanding of crypto to go in on it at any significant level...   ...but, it will be interesting to watch it evolve in the coming years!

Ronald Rohde · Answer

Always bears repeating, Not your keys, not your coins.

I think bad actors will always be around, there is a need for some consumer protection, but I think regular laws can do this. We just need enforcement and crypto can grow under that.

Engelo Rumora · Answer

Same here

Big shame

He seems like a decent bloke.

I've been associated with quite a few of these techy guys and many see it as a "game".

They just don't get the consequences of what happens to many folks when the money is gone...

Caleb Brown · Answer

I have been binge watching YT videos on FTX. It's a shame what Sam did. I would play it safe right now. Crypto has been taking a pounding

Chris Martin · Answer

FTX is having a Mt. Gox moment. Here's a post from 2013, when others here on BP were BTC mining or sponsoring (like me) mining. I stand by my posts on that thread. It's been an interesting 10 years.

FTX Disaster! What Next?

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