The FTX | What went wrong and why?

In this article we try to explain that what went wrong with FTX and why it was happen…

FTX you can call it future exchange. FTX was the second-largest crypto currency exchange in the world, just like NSE (National Stock Exchange) in India, Mumbai Stock Exchange, New York Stock Exchange, NASDAC in crypto currency they all have their own exchange, FTX US, Alameda Research.

Understand the Crypto market:

This is a new web world baby and It is a totally mindset game if you are cool or a zenzier than you get it. Than you understand how boring and old fashion your world of currency, Bank drafts, Bank transfers, Bank deposits, stock market and mutual funds are.

On the other hand just think if something have no value until is a value than how can is a so much value until it is underline value. When we see the currency note a government a central bank guarantee a value of currency note. In case of crypto there is nothing, means there is no stake behind it, so this is not a fiat currency.

Bank FD vs crypto currency Interest rates in U.S and in India:

In America central bank interest rate is zero. On the other hand they offer to borrow money from you and guaranteed 20% to 25% returns. On the other hand if we look into Indian market we found here Bank FD return rates provide by the bank is 5% to 7%, mean you put your money in the bank and bank will provide you 5% to 7% returns. But how they can do this…the answer is you take a housing loan and bank may charge you 9%-10% or very the rates according to client profile and bank to bank and like this they have a several tolls from where the are making profits on your parking money and give you a return of tokens behalf your investment.

Now suppose RBI fixed rate are 6% and some one come to you and say Hay! Give your money to me I will give you 26% return on it. You feel fantastic and feel that your mom will also be happy, you make so much of money but you know what that`s because of some one mom will be UN-happy because other guy steal their money, reason is if the rate in the market is 6% to 8% than how a guy can guarantee you for 26% or more. It is clearly indicated that either he steal some other person money or his intention is to return back your money. So apart from this if you still think to invest your money in crypto market take little awareness and research on this market.

No human are perfect in this world and if some one says to you that he will give guarantee you more than market return and also say that there is zero risk involve, how could be possible a investment grow up without any risk involve. Richer you are more greedy you became.

How was the operation running in FTX, FTX US and Alameda Research?

FTX is a Exchange. You can trade crypto currency their. But FTX has no power to deal in cash they don`t have authority because of this reason they use Alameda Research company which is provide you suggestion and which could accept wire, electronic transfer. But the main catch point is Alameda did not kept in cash, they buy FTT token through FTX exchange with the money that was invested. Now look at the fraud the money which investor invested is in Alameda, token which buy from the exchange and FTX the platform which use to buy token which all belong to a single person who`s name is Sam Bankman-Fried.

Hero or Villon:

Till 2^nd November 2022 Sam Bankman-Fried like a global hero. 30yrs old normal graduate MIT in physic, Physic major Math miner worked with top class trading firm Jain Street. He did very well. Than he decided to set up firm of a zone a crypto because it is in trend. He wants to become rich very soon and he also succeeds. If we look until November 2^nd his personal wealth worth was $16 billion almost 1 lakh 40 thousand crore. He has unusel life style. He purchased Island in Bahama`s (Hong Kong) and register his firm.

S.B.F. (Sam Bankman- Fried) founded the Alameda Research company in 2017 and two years later in 2019 he started a FTX an exchange platform for buying and selling a cryptocurrency. he is the majority owner of both firms. After launched few big bulls are invested in the company like Sequoia Capital, Temasek, Ontario Teachers Pension Plan and many. In a few month it value boomed and celebrities are start campaigning for FTX.

He became the second largest donar to the Democratic Party after Mr. Suras. He gave almost 5.2 billion dollars to Joe Biden for his political campaign. He contributes to domocative party and his partners and other investor also contribute to the republican parties. It is clearly indicate that they are playing with other people money and fraudulent game with other people investments. He also develops some kind of software programe which help him to grow direct his wealth and as well as other people wealth too.

Just think if money will not use to make money than how cans an investing company will return the fund with guarantee income.

In collapse played a major role News flash on CoinDesk:

CoinDesk reviewed that Alameda had $14.6 billion of assets as of June 30, Much of is the FTT token issued by FTX another Bankman-Fried company. After flash this news on 2nd November investors starts withdraw their funds from the market to sale their FTT token and it happen on continuously. Due to this reason shorting of funds FTX collapse and S.B.F. announced bankrupt to all their three companies. He is trying to convinced the investor to stay back and he will return all of the loses to his investor but it`s looks that it is too late and investors filed a fraudulent complained against him. If it is not sorted soon Bankman-Fried may go to jail.

Disclaimer: We are not promoting any crypto currency and related things. If you want to invest than it is all up to you. Cryptocurrency market is a volatile market which always goes up and down so before investing always research. The article which we wrote it is all from the market feedback we are not write it to discourage any one.