Sam Bankman-Fried says “will be conducting a [capital] raise” next week in memo to staff

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At this point who would invest in FTX?

Anyway, Reuters cites a memo from FTX CEO Sam Bankman-Fried to staff that has some interesting points:

  • Next week will do a capital increase to do right by customers
  • Cites “potential new investors”
  • Optimistic about raising capital but “doesn’t want to imply anything about the probability of success”
  • Raise may end up being a combined FTX International and FTX US
  • There have been talks with Justin Sun for a possible raise
  • Binance “probably never planned to go through with the deal”

On the last point, the US regulators won’t like that. I also wonder if this note was leaked on purpose to stop the run on the crypto bank and do some damage control on how fast Binance went. I can’t see any reasonable person investing in FTX right now, the brand is ruined and the company reportedly has an $8 billion hole in its balance sheet.

A “cascade of edge calls” is likely to occur in the rest of the crypto ecosystem, according to JPMorgan’s Nikolaos Panigirtzoglou.

Bitcoin

Bitcoin

Bitcoin is the world’s largest and the first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or a single administrator. Rather, Bitcoin instead can be sent through peer-to-peer (P2P) networks, which itself is absent from any intermediaries. Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received through a type of distributed. ledger network called blockchain. Since Bitcoins are not issued or backed by any governments or central banks, it is considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In return for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only be 21 million Bitcoins. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making History Since its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market cap in the world. Its popularity also contributed significantly to the release of thousands of other cryptocurrencies, which are now known as altcoins. At its inception, the crypto market was originally hegemonic, although nowadays the landscape contains countless altcoins. Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering due to its decentralized nature. Because Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illegal behavior. Critics also note its high electricity consumption for mining, rampant price volatility and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble due to its lack of oversight.

Bitcoin is the world’s largest and the first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or a single administrator. Rather, Bitcoin instead can be sent through peer-to-peer (P2P) networks, which itself is absent from any intermediaries. Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received through a type of distributed. ledger network called blockchain. Since Bitcoins are not issued or backed by any governments or central banks, it is considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In return for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only be 21 million Bitcoins. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making History Since its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market cap in the world. Its popularity also contributed significantly to the release of thousands of other cryptocurrencies, which are now known as altcoins. At its inception, the crypto market was originally hegemonic, although nowadays the landscape contains countless altcoins. Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering due to its decentralized nature. Because Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illegal behavior. Critics also note its high electricity consumption for mining, rampant price volatility and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble due to its lack of oversight.
Read this Term is trading at $16,506, which is up about $1000 from yesterday’s late low, reflecting some optimism.

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