Dear All,
Before we get into it, we want to let you know that there is no impact to our operations resulting from FTX/Alameda. We continue to service client trades and to process deposits and withdrawals.
First, we’d like to start off by offering our deepest condolences for those that were affected in the demise of FTX. Our industry is not new to horrible situations like these and unfortunately, the larger the space gets (i.e. the more money involved) the more painful the fallouts. This one in particular, however, feels much different. FTX was looked at as one of the most trusted, heavily regulated, and well capitalized exchanges in the world. From stadium rights and other major sponsorships, major political donations, and what seemed to be a backdoor to all of Washington (when it came to influencing crypto regulations), how could any of us have seen this coming? How the hell could Sam Bankman-Fried (SBF) raise nearly $2bn for FTX from some of the most sophisticated investors like BlackRock, Sequoia, Ontario Teacher’s Pension Plan, Softbank, etc, etc..? Oh man, Canadian pension funds are not having a good year…first the CDPQ with its $150m investment in Celsius, and now OTPP on the hook for $95m with FTX…why–not–just–buy–bitcoin?
Eh, maybe that’s what they’re sitting around the boardroom talking about now.
We can keep asking ourselves these questions, look for early signs that we should’ve noticed, doom-scrolling Twitter to try and piece together what exactly happened and the overall impact…but I think at this point in time, it’s best to chalk this one up as just another probable case of fraud and move on.
Most importantly, I want you to know that we’ve worked day and night to service and be there for our clients. We have mitigated risk across all counterparties in case of any possible contagion effects (ex. reducing exposure to any single exchange and converting stablecoins back to fiat).
I’ve written about this before but I want to address it here again because it truly has not changed. Keeping in mind that we’ve likely just experienced the worst case scenario – I haven’t heard one person (other than the usual suspects – Peter Schiff, Charlie Munger, etc.) say bitcoin is dead. In fact, it’s to the contrary and it seems that everyone believes that bitcoin is here to stay and it’s not a matter of if, but when it will fall back into favour. I could be in lala land but I think I’m a pretty pragmatic guy and I truly believe that with every cycle, bitcoin brings in a larger and larger base of supporters that understands its merits and tech.
Here’s a great clip from Jack Mallers that I think is very much worth the watch:
Look, I’m not sure if this FTX debacle and its subsequent ripple effects will make for an even longer winter than what was forecasted but I am confident that, and we (Satstreet) want you to know we’re here for you and we’ll weather the storm together.
And now, for any of you who are Curb fans, here’s the most crypto and most Larry David thing to play out in real life:
Larry David is getting sued for getting paid by FTX to promote it during the Super Bowl, wherein the promotion, Larry David plays Larry David claiming that he doesn’t understand crypto and doesn’t think it’s worth buying into…the irony.