Former FTX CEO Says Cryptocurrency Change Nonetheless Solvent | Cryptocurrencies
Sam Bankman-Fried, the previous CEO of collapsed cryptocurrency trade FTX, claims the corporate he based stays solvent at the same time as the ultimate days of its new boss overseeing Enron start to formally start. chapter proceedings.
In a sequence of tweets on Tuesday night, Bankman-Fried insisted the corporate had round $9bn (£7.6bn) in property, together with semi-liquid and illiquid property, and owed clients simply $8bn .
The tweets implicitly double down on his earlier declare that his firm’s holding of “serum,” a token controlling FTX, with a present market cap of $80 million, is definitely value $2 billion.
“A number of weeks in the past, FTX was processing about $10 billion in transaction quantity and billions of transfers per day,” he wrote. “Roughly talking, that is the place it’s at present,” he stated, earlier than saying the corporate had $5.5 billion in “semi” present property and $3.5 billion in “noncurrent” property. “Yeah, possibly that $9 billion is illiquid [at market prices] Not value $9 billion. [On the other hand] — a month in the past it was value $18 billion. “
Bankman-Fried admits “you have all seen it” because the numbers he cites have been disclosed in inside spreadsheets Published by the Financial Times Saturday, apparently created by Bankman-Fried himself on Thursday, November 10, the identical day he apologized for its plummeting value earlier this week.
Nevertheless, the spreadsheet additionally means that a number of the “much less liquid” $5.5 billion could also be tough to understand for the corporate’s collectors. Among the many greater than $2 billion in property held by the agency is an encrypted token referred to as serum, which is the bottom token of the decentralized trade FTX is launching in 2021.
Regardless of valuing its holdings of tokens at $2.2 billion and claiming they have been value greater than $5 billion just some weeks in the past, the implied complete market cap of all freely traded sera is simply $80 million. It is going to be tough for FTX or its collectors to promote 25 instances extra Serum than ever earlier than for wherever close to the present market worth, or in any respect.
Serum’s market cap can be tied to FTX’s destiny. Though Serum Change is “decentralized,” it’s truly managed by FTX, which owns the overwhelming majority of governance tokens and the precise to mint new tokens — a proper that has been exercised twice prior to now.
Regardless of being ousted as CEO, Bankman-Fried continued to work to lift funds for the trade’s bailout. “What can I attempt to do? Enhance liquidity, get clients entire, and reboot. Perhaps I am going to fail. Perhaps I will not supply clients greater than what I’ve,” he stated.
“I’ve undoubtedly failed earlier than. You all know now, nice. However all I can do is attempt. I’ve failed sufficient this month. A part of me thinks I is likely to be on to one thing.”
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