Top Conversations on Crypto Twitter Last Week: The FTX Fiasco continues
The whole discourse on crypto Twitter was primarily led by firms disclosing their exposure to the fallen FTX exchange and its tokens, FTT. However, in the Indian perspective – things have begun to look to the brighter side. Read on to know more!
In a brand new series, we at CoinDCX want to keep you abreast of everything that has been happening on Twitter, crypto and everything in between. This past week has been in a whirlwind of activity – terms like proof of reserve and liquidity being thrown around a lot more than usual. 11th of November saw the final nail on the coffin of the previously third largest crypto exchange, FTX exchange – as it filed for Chapter 11 of the bankruptcy protection in the United States.
The sentiment of the overall crypto twitter has been on the bearish side, primarily led by the FUD around the FTX collapse. The whole discourse on crypto Twitter was primarily led by firms disclosing their exposure to the fallen FTX exchange and its tokens, FTT. However, in the Indian perspective – things have begun to look to the brighter side. Read on to know more!
Monday – 14 November
In related notes, Binance, which in some circles, was being accused of shorting the FTT crypto for market gains to rout the third largest crypto exchange in the world – was vehemently denied by CZ himself.
Full disclosure: Binance never shorted FTT. We still have a bag of as we stopped selling FTT after SBF called me. Very expensive call. https://t.co/3A6wyFPGlm
— CZ 🔶 Binance (@cz_binance) November 14, 2022
Soon after filing for chapter 11 bankruptcy in the United States – several pictures of FTX founder Sam Bankman-Fried’s $40 million penthouse in the Bahamas were circulated after being allegedly put on sale.
Sam Bankman-Fried lists $40 million penthouse for sale in the Bahamas. pic.twitter.com/U4UlUQJqkX
— Watcher.Guru (@WatcherGuru) November 14, 2022
Somehow, the founder of the FTX crypto exchange also took to Twitter to post cryptic mono-alphabetic tweets, that became quite the conversation starter, on and off Twitter too.
— SBF (@SBF_FTX) November 14, 2022
But then we found out he was actually trying to dramatically talk about his failed exchange and how he wanted to do right by the customers who trusted his exchange and put their funds in it.
13) My goal—my one goal—is to do right by customers.
I’m contributing what I can to doing so. I’m meeting in-person with regulators and working with the teams to do what we can for customers.
And after that, investors. But first, customers.
— SBF (@SBF_FTX) November 15, 2022
Moving on from the SBF drama, we saw the unveiling of the metaverse version of the newly launched Bengaluru airport in India, called ‘Metaport’ after the recent inauguration of Terminal 2 of the Bengaluru Airport. This became the world’s first metaverse powered by Polygon, Amazon Web Service (AWS) and Intel.
H’nble Prime Minister of India inaugurated Terminal 2 of @BLRAirport
— Sandeep | Polygon 💜 Top 3 by impact (@sandeepnailwal) November 13, 2022
Not to mention, CRED’s founder Kunal Shah’s twitter poll revealed India’s sentiment about crypto.
What’s your current sentiment about crypto?
— Kunal Shah (@kunalb11) November 14, 2022
Tuesday – 15 November
FTX’s SBF also became quite popular for the number of tweets he has gone on to delete amid the FTX collapse fiasco. Turns out, another account has been tracking his tweets and archiving them.
We've archived @SBF_FTX's tweets over the past year. Due to the recent bankruptcy, and growing concern around his account activity, we've decided to release the list of 118 tracked tweets that have since been deleted after posting.https://t.co/ts04Mbvv1z
— The Tie (@TheTieIO) November 15, 2022
Even Ethereum co-founder Vitalik Buterin, weighed in on the whole FTX fiasco.
Automatically downgrading every single thing SBF believed in is an error. It's important to actually think and figure out which things contributed to the fraud and which things didn't.
Don't be the guy who would have tried to cancel vegetarianism in 1945.
— vitalik.eth (@VitalikButerin) November 15, 2022
The FTX collapse is a curse that goes on giving. After the debt riddled exchange filed for chapter 11 of bankruptcy protection in the United States, reports came out suggesting that BlockFi, one of the larger players in the space, is on the verge of insolvency due to exposure in FTT tokens and could be filing for bankruptcy too.
BREAKING: #BlockFi files for bankruptcy.
— whalechart 🐳 (@WhaleChart) November 15, 2022
Wednesday – 16 November
Amid the ongoing anger against centralized exchanges in the crypto world – Ethereum co-founder also had his two cents to share regarding the ongoing fear, uncertainty and doubt. Take a look:
The "centralized anything is evil by default, use defi and self-custody" ethos did very well this week, but remember that it too has risks: bugs in smart contract code.
Important to guard against it:
* Keep code simple
* Audits, formal verification, etc
* Defense in depth
— vitalik.eth (@VitalikButerin) November 16, 2022
Read more: Vitalik Buterin learnings from FTX Collapse
Thursday – 17 November
On the 17th of November, the new FTX CEO John J Ray released a 30-page affidavit which revealed that FTX as a company itself didn’t know how much cash it had at hand or even how many people it employed. Ray, who is a veteran in the business having led the scandal riddled Enron through its bankruptcy proceedings even said that he had never seen anything like this in his entire career.
I just read FTX's Chapter 11 First Day Affidavit.
In it, the appointed restructuring CEO John Jay Ray III, who oversaw Enron's bankruptcy proceedings, calls FTX's case the worst of his career.
Its contents are shocking.
Here are the highlights:
— jonwu.eth (@jonwu_) November 17, 2022
Additional read: What is Proof of Reserve?
Amid the conversations around the proof of reserve and the controversy around the crypto withdrawal and deposits – some Twitter users have come out to support CoinDCX’s decision to halt withdrawals amid regulatory uncertainty in the country.
This might be against the view of the community, but I'm with @CoinDCX for not allowing crypto deposits and withdrawals. They are here for the long game and this is the only way to stay safe in the current scenario of regulatory uncertainty. It was a bold decision. @smtgpt
— Crypto Hanuman (@crypto_hanuman) November 17, 2022
Friday – 18 November
Amid the rising scrutiny – Elon Musk again took center stage on Twitter – calling out US authorities for not looking into the FTX fiasco but rather asking FTC to investigate Twitter. This came after the mass layoffs at Twitter post its takeover – a group of Democratic senators on Thursday called for an investigation into possible violations of consumer protection laws or its data-security commitments.
— Elon Musk (@elonmusk) November 18, 2022
Along the same lines, 18th November was the first day of the FTX investigation and Twitter witnessed something very interesting happening in the room.
— Jordan Schachtel (@JordanSchachtel) November 17, 2022
Catch the Latest Crypto News & Updates on CoinDCX Blog
Saturday – 19 November
For the last few days, @CoinDCX team has been working with @nansen_ai to publish our proof of reserves. It’ll have all the details including the addresses that the community is asking for. Be assured that we're on top of this and is planned to be published early next week.
— Sumit Gupta (CoinDCX) (@smtgpt) November 19, 2022
This move by the CEO of CoinDCX, Sumit Gupta – has been wholeheartedly supported by the overall Indian crypto community. Take a look at a few of these tweets:
good move boss! excited to see this happening, the users deserve this❤️
appreciate you guys for taking first steps when it comes to such things
— Shivam Chhuneja (@shivamchhuneja) November 19, 2022
— Open4profit (@open4profit) November 20, 2022
Sunday – 20 November
As bankruptcy investigations go underway against the FTX crypto exchange – the company has shared a press release regarding the strategic review of its global assets. This is part of the filing, along with 101 of the 130 affiliated companies of FTX – this strategic review of global assets has been announced. This effort is being undertaken to maximize recoverable value for stakeholders.
1/ Sharing a Press Release issued early today –
FTX launches strategic review of its global assets. Text below (and link). https://t.co/wxz9MYnXrn
— FTX (@FTX_Official) November 19, 2022