💡 MetaYeda Insights #2: What are the possible Tsunamis effects (津波) of Bankman's FTX crypto exchange collapse?
Elhanan Gazit, Ph.D., juloot Founder Insights about the FTX's saga and future implications.
The collapse of the FTX crypto exchange run by Sam Bankman-Fried aka SBF is like an earthquake of grand-epic magnitude on the Richter scale (8.4-10 and above).
🎢 What's Next?
In my opinion, the damage will cause a tsunami (Japanese 津波) in the crypto industry and future investments in Fintech. In addition, investments in Metaverse and Web3 platforms will be affected too.
Five possible Tsunamis Effects (津波) of the FTX crypto exchange collapse:
1️⃣ The tsunami effect of the collapse will cause a rethinking of the deep meaning of blockchain technologies and their overarching goals: ownership, control, and privacy in Web 3.
2️⃣ Investors, VCs, and startups that relied on the crypto exchange are enduring difficult times. Most of them will crash, but some will overcome the crisis.
Every crisis is an opportunity.
3️⃣ The tsunami waves will also affect the scope of investments in the Metaverse market and Web3 platforms.
4️⃣ Thousands of people who trusted Almedia Research, the twin company of the FTX, will lose their jobs. Some will lose something more substantial, their venture dream.
5️⃣ Lawyers and newspapers will have an abundant income.
💫 Collateral effect (ricochet) Coming soon: The TV series and movie about this crazy story on Netflix.
Ricochet 💫💫 The wave of anti-Semitism is expected to increase. Sam Bankman is a Jewish American.
Local ISR ricochet 💫💫💫 The pensions of the Canadian Teachers Union took a blow. Some Israeli financial entities' funds are lost too. Hence, the Israeli market will also feel small tsunami waves of the FTX collapse following the alleged crypto hacking of Almidia Research.
Why did prestigious venture capitals and institutional foundations invest in SBF's crypto exchange?
Do you recall the story of Bernie Madoff? Prof. Daniel Kahneman, the Nobel Prize in Economics winner, calls it Cognitive illusions.
In the promotion interview of his book "Thinking, Fast and Slow," Kahneman explains why we are biased and influenced by charismatic and manipulative people. Watch (from 04:30 min on):
Credit: Inc. Youtube Channel
SBF has been compared to J.P. Morgan. But beyond his greed and power intoxication, the author of "America's Bank: The Epic Struggle to Create the Federal Reserve" writes about 'The J.P. Morgan of crypto?' Source: Roger Lowenstein for the NYtimes DealBook With Andrew Ross Sorkin.
Ex-regulator Sheila Bair, a top regulator during the 2008 financial crisis, says the FTX crash is similar to the Bernie Madoff scandal. Source: Matt Egan for CNN Business.
In a US court filing, John Ray III, appointed to run the FTX bankruptcy, said that "the bankruptcy of the Crypto group is the worst case of corporate failure he has seen in more than 40 years". Moreover, he had never seen "such a complete failure of corporate controls and such a complete absence of trustworthy financial information." Source: Kadhim Shubber, Joshua Oliver, and Sujeet Indap for Financial Times.
The madness continues with more revelations like the disclosure of the email correspondence with Elon Musk, in which FTX's owners tried to get him on board and to invest more money in the alleged FTX "Ponzi scheme."
Oklahoma man Edwin Garrison filed a class action lawsuit on behalf of FTX users, describing the company as a "Ponzi scheme" and saying the celebrities had endorsed unlicensed securities. In addition to FTX, other defendants in the suit include NFL star Tom Brady and his supermodel ex-wife Gisele Bundchen, NBA legends Steph Curry and Shaquille O'Neil, MLB's David Ortiz and Shohei Ohtani, and the Golden State Warriors. Source: Jeff John Roberts for Fortune.
The fall of one of crypto's largest exchanges could have repercussions for regulation and traditional financial markets, which will impact the future of crypto. Source: Benjamin Powers and Cameron Hood for Grid.
It’s FIX the FTX Time
Will the crisis drive a reverse oscillation to improve blockchain technologies, information security, and more user-friendly accessibility for the general public?
Will we see an evolutionary leap in Web3?
What do you think?
In response to Elon Musk's statement that Twitter is not built for blockchain, I've offered to eco Telegram's Web3 business move.
Telegram's new features allow users to purchase and sell usernames through live auctions on Fragment, a free, decentralized platform that handles transactions for collectibles amongst users.
Since the new feature launch, Telegram's own blockchain currency Toncoin (TON), posted a 3.28% gain intraday with a week-on-week rise of over 13%, despite the FTX saga.
I tagged Elon Musk in a tweet. We'll see 👇💫🐣
If you liked this Newsletter
I'll see you in the Metaverse. GameOn!
🕹Elhanan Gazit, Ph.D., is a Gaming and Metaverse Strategist, Advisor, Entrepreneur, Investor, Speaker, Lecturer, Video Games Scholar // Founder @ juloot, @MetaYeda, @YedaVerse, Ex-Founder and CEO @ MetaverSense Ltd. Let's connect: https://linktr.ee/VRider
Disclaimer: Not financial or tax advice. This newsletter is strictly for educational purposes and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Additionally, this newsletter is not tax advice. Talk to your accountant. Do your research.
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