Absolute Chaos, FTX Collapses.
From the Editor
Gm Tigers,
Last week was one of the worst Web3 has ever experienced. And we have only one guy to blame for that: Sam Bankman Fried (SBF).
If you’re not up to speed with this crazy catastrophe, here’s a rundown:
SBF was the CEO of FTX, the world's second largest cryptocurrency exchange.On November 2, 2022, crypto publication Coindesk published an article alleging that Alameda Research (FTX's sister company) apparently shared its balance sheet with FTX. Even though they are two separate companies. According to Coindesk, FTX had $14.1 billion, but almost all of it was locked in various token projects that the firm invested in. Notably, the trading firm held $3.11 billion of FTT, the token launched by FTX itself. meaning that they’ve been holding billions of dollars in tokens that they've minted themselves.Dirty Bubble Media, an independent researcher, picked up the story and, after investigating the matter, called out Alameda Research in his piece titled "Is Alameda Research Insolvent?"
This piece brought a lot of attention to the issue and arguably sparked the flame that would soon engulf the $40 billion crypto empire SBF built.One of the people who saw the article by Dirty Bubble Media was CZ, the CEO of the world's largest crypto exchange, Binance.CZ is apparently not a fan of Sam Bankman, likely because SBF was badmouthing him to financial regulators. The Binance CEO announced to his 7 million followers on Twitter that in light of these issues, Binance will sell all of its FTT holdings.
his tweet sparked a lot of frenzied speculation. Questions like "is FTX the next Celsius?" started popping up. Predictably, there's a bank run on FTX. People worried about losing their funds started taking money off of FTX. SBF assured the crypto community (with tweets) that FTX reserves were fine, but the crypto exchange soon halted withdrawals. Nearly $1 billion of user funds were now stuck in FTX. The crypto exchange announced that it was experiencing a liquidity crunch. The next thing you know, CZ announces on Twitter that Binance is buying out their biggest competitor, FTX, for pennies on the dollar due to this liquidity crunch. The deal eventually fell through due to all the crazy stuff that came out after CZ’s initial announcement.
FTX and Alameda Research have now filed for bankruptcy. If you want to learn more details about FTX's downfall, check out this video from Coffeezilla.
The fallout
It turns out that there’s not much difference between Mashinsky and SBF. Both were highly respected in the crypto space and turned out to be scam artists. After wrecking the reputation of his firm and the entire crypto industry SBF appears to be on the run from the authorities. Investors and FTX users might lose over a billion dollars due to SBF recklessness and possibly fraud.
The way ahead
This is a tough time for crypto. Prices are low, inflation is high, and industry leaders are turning out to be fraudsters. However, let’s look at the silver lining here - the FTX debacle will speed up the process of regulating the crypto industry. This will create a safety net for the investors and likely stop crypto entrepreneurs like SBF from operating like they are in the wild west. Plus, as Eric Vorhees pointed out, nothing has changed; the fundamentals are still the same. Web3 technologies like the blockchain are here to stay!
Updates from Tegro HQ
While SBF was busy wrecking the crypto market, we were hard at work to take web3 gaming to the next level. Here’s some latest updates from Tegro HQ.
New Collab Alert
We’re super excited to list Archloot on Tegro Earn. You’ll soon get to play ArchLoot bounties on Earn, stay tuned.
Tegro Earn is steadily onboarding new games every week. Games that are listed on Tegro can significantly increase their player base and total network capital. List your project on the ultimate web3 gaming platform to supercharge your growth now.
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Tegro Events
Twitter Spaces
The theme for last week’s Twitter Spaces session was Move-to-Earn. We hosted amazing Move-to-Earn projects like FitMint and Rapty to learn about this amazing space.
Unwind Session
Last week’s Unwind session was lit. We discussed the FTX drama, shared token projects, mulled over the metaverse with our community. Join in on the fun here if you love web3 and gaming.
Coming up this Week
Community Call: Join us for a community call on Discord this Friday to learn what's happening behind the scenes at Tegro HQ. Also catch up with other community members for a great time.
Twitter Spaces This week we’ll be hosting Legends of Elysium(LoE) on our Twitter Spaces. LoE is a fantasy strategic card game with play-to-earn mechanics. Stay tuned on Twitter for the announcement.
Web3 Gaming News
Tweet of the Week
Great responses in this one:
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