by Pam Martens and Russ Martens
The August/September cover of Fortune Magazine raised the titillating question as to whether crypto billionaire Sam Bankman-Fried might be the next Warren Buffett – a man whose investment acumen has survived more than seven decades. Less than three months later, the public has its answer. Bankman-Fried’s crypto empire has turned to ruins in one week.
As it turns out, folks don’t have a lot of confidence in the crypto exchanges that hold their crypto. The equivalent of bank runs seen in the early 1930s, before federal deposit insurance was enacted by Congress in 1933, can wipe out a crypto exchange in a week’s time.
According to Reuters, Bankman-Fried’s crypto exchange, FTX, saw $6 billion of withdrawals in a 72-hour span through yesterday, leaving the exchange teetering amid questions about its solvency.
Changpeng (CZ) Zhao, the CEO of the competitor crypto exchange, Binance, who helped to spark the concerns about FTX, is now attempting to play the white knight and buy the troubled FTX. Or not.
According to Tweets from CZ,…
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