Though it will be an unpleasant extension of crypto winter for a lot of us, FTX should not be bailed out. Do not reproduce the awful “too big to fail” pattern of tradfi. If crypto cannot organically bounce back from this it perhaps doesn’t deserve to survive at all.
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9B is about 1B of total crypto market cap of 900B+. Maybe 2-3% if you assume a 2x-3x contagion multiplier. If it can’t survive a 2-3% event I have bigger doubts.
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I have some moderate sympathy for retail investors who couldn’t afford it FOMOing in thanks to Matt Damon etc. ads, but to extend the principle, there’s no “too small to fail” either. The advertising may have been exploitative but the retail discourse was aware of the risks too.
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* 9B is about 1% not 1B
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Based, and love the term "tradfi". Financialization of a largely unproductive asset class is a red flag for me. If it mainstreams as an exchange medium, maybe then I look for capital returns
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I was glad to see FTX going down.
The sooner the scammers are purged, the sooner the real shit can start happening in the space.
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