Who among you thought this young 20-something was a "crypto genius" at the time? But now you say he's just a piece of s*it. Well, let me ask you then: who among you think Michael Saylor or Cathy Wood is a "crypto genius"? But how can you be so sure?
u.today
The FTX saga, despite Sam Bankman-Fried’s appeal, has concluded with the former FTX CEO receiving a 25-year sentence. The ramifications of this landmark trial will endure.
Crypto dream turned into nightmare
FTX, once valued at $32 billion, collapsed in late 2022, filing for bankruptcy amid a broader cryptocurrency crash. The company's downfall was attributed to the misuse of customer funds for risky investments through a closely associated hedge fund, Alameda Research.
No one cared until crash arrived
During significant market surges, investors often overlook risks. Bankman-Fried rose to prominence in the wake of the crypto market influx after 2020, attracting new investors from traditional finance. Michael Saylor’s $250 million investment in Bitcoin marked a turning point in this new era.
The Sequoia FTX eulogy underscores how VCs sometimes neglect due diligence when entering the crypto money-making machine. Alameda Research was heavily backed by FTT tokens, operating under the assumption that FTT prices would remain stable and clients would not withdraw from FTX. The problem was not that FTX customers and investors trusted SBF and his partners without verification — they simply did not care at the time.
The FTX saga, despite Sam Bankman-Fried’s appeal, has concluded with the former FTX CEO receiving a 25-year sentence. The ramifications of this landmark trial will endure.
Crypto dream turned into nightmare
FTX, once valued at $32 billion, collapsed in late 2022, filing for bankruptcy amid a broader cryptocurrency crash. The company's downfall was attributed to the misuse of customer funds for risky investments through a closely associated hedge fund, Alameda Research.
No one cared until crash arrived
During significant market surges, investors often overlook risks. Bankman-Fried rose to prominence in the wake of the crypto market influx after 2020, attracting new investors from traditional finance. Michael Saylor’s $250 million investment in Bitcoin marked a turning point in this new era.
The Sequoia FTX eulogy underscores how VCs sometimes neglect due diligence when entering the crypto money-making machine. Alameda Research was heavily backed by FTT tokens, operating under the assumption that FTT prices would remain stable and clients would not withdraw from FTX. The problem was not that FTX customers and investors trusted SBF and his partners without verification — they simply did not care at the time.
