Reading time 3m45s
GM geniuses 🧠
A bit of pep in the step of BTC this morning might have the Americans feeling confident heading into Thanksgiving, but watch out for those Black Friday deals..
If you really want to impress your family and friends, just make sure your epistemology is up to date 😅
- FTX Relationship Map 🗺️
- Another $1M Prediction 🚀
- Harvard Paper: Buy BTC 🔥
- Magic Eden + MATIC 💥
- El Salvador Volcanos 🌋
Mapping FTX’s Troubled Business Relationships
Let’s get a few things on the table first.
FTX Group (includes Alameda and various other organizations linked to FTX) was involved in the following:
1/ Exchange operations (duh)
2/ OTC trading and lending
3/ Liquidation protections
4/ Market making
5/ Venture funding
Basically they did everything you would expect big banks and venture capital firms to be doing on a regular basis.
They also spent a lot on real estate, though the details on that are sparse.
Messari mapped out all their biggest relationships based on the information made public in the FTX-Files.
Familiar names caught in that web 👀
BlockFi, Voyager, Celsius, Genesis, and of course Alameda.. but the most interesting part is where you see the “FTX Users” block flowing into the Solana ecosystem lending protocols..
Reminds me of this tweet:
And this was all happening in the dark.
Back to the point made by Messari, “DeFi can’t solve the issue of basic record keeping and general accounting if institutional crypto continues operating off-chain.”
Everything got so complicated, but really it’s all so simple.
Of course crypto ‘banks’ and DeFi platforms and all the big backers and lenders and user asset spenders should operate on-chain in plain sight for all to see. Of course 😑
A bunch of genius nerds built tech that makes modern banking and financial record-keeping positively obsolete - why the hell would we just go back to the same old system that has failed time and time again for millennia?
If everything is going digital, then DeFi via self-custodied digital assets is the only way to a free and fair future 💯
Today’s Tokengraph is brought to you by Bolide
Looking for a way off centralized crypto exchanges that still allows you to generate yield? 👀
Introducing Bolide Finance:
Bolide is an easy-to-use self-custody DeFi platform and high-yield aggregator that lets you keep control of your own BTC, ETH, and other crypto assets while still using them to earn some of the highest returns in the market 💪
Using advanced algorithms to track investment opportunities and smart contracts to execute efficiently, Bolide makes your money work twice as hard.
Some of their investment strategies include providing decentralized markets with liquidity to farm trading fees, and extracting lending fees from lending protocols - this allows them to offer some of the industry's highest yield.
Let your money work for you, but let it be decentralized and fully audited by Haken.
Could SBF Have Saved FTX if he Tried?
He recently sent out a letter to former employees profusely apologizing and trying to explain his actions.
He claims FTX was a thriving, profitable, and innovative business just a month before the crash, and goes on to claim “potential interest in billions of dollars of funding came in roughly 8 minutes after I signed the chapter 11.”
Sure bro 👍
He claims he was “pressured” into signing the bankruptcy docs - this is a common tactic of narcissists where no matter how badly they fail, they will always try to push the blame away.
Unsurprisingly, no mention of any of the Fraud in the letter though.
Mans skipped the fancy publications by Forbes and Bloomberg this time and just published his own fluff piece 😅
"As we frantically put everything together, it became clear that the position was larger than its display on admin/users, because of old fiat deposits before FTX had bank accounts," said the slippery CEO.
I’m not sure that’s a good of an excuse as he thinks it is 👀
What about the more than half a $billion spend on marketing and politics?
Add up the marketing spend and the fraudulent loans and everything else and I think it’s safe to conclude that a few deposits made years ago “before FTX had bank accounts” probably don’t have anything to do with it, unless they were like $4B worth of deposits.
This whole Twitter thread by Delphi is a far better explanation of what happened than anything written by SBF.
Which NFT project is topping charts during these troubled times?
Tap your answer below to see if you’re right!
Web3 Pipeline 📢
Cathie Wood Thinks BTC will be Worth $1,000,000 by 2030 - she recently gave her prediction in an interview with Bloomberg.
Harvard Paper Recommends Central Banks Buy Bitcoin - citing diversification and the ability to circumvent sanctions by the US government and its allies.
Magic Eden Integrates Polygon - the leading cross-chain NFT marketplace now accepts MATIC and supports Polygon-based NFTs.
Volcano Bonds Coming to El Salvador This Week? a bill was recently submitted in El Salvador that would see the creation of the world's first BTC-backed bonds.
NFT drops of the day 👀
🐕 Doge Academy | 0.1 (ETH)
Nov 25 - holders get access to an end-to-end NFT course taught by industry experts, hand-drawn historical profile pictures, & 50% discounts on future Doge Academy mints.
🛑 NOTE: drops not promoted/endorsed
✅ DYOR and practice safe minting!
Remember that all models are wrong, some are useful, and past data isn’t always an accurate predictor of future performance for any asset.
That being said, this one is pretty interesting if you spend a few minutes to understand what it’s saying.
That’s all for today frens!
How was today's newsletter? Help us get better:
Thanks for voting! We can only improve with feedback from little geniuses like you.
DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice to buy or sell any assets or to make any financial decisions. Do your own research.