The Rise and Fall of FTX

https://www.ftxstory.com/ftx-part-1

by snowypine • 4 years ago

3 3 4 years ago

_shedlife_• 4 years ago

Pretty nuts that this 'wunderkind' got started with crypto arbitrage...

akiselev• 4 years ago

Because the South Korean crypto market wasn’t connected to the rest of the world, the Bitcoin price was on average 4.73% higher in Korean than in the US from January 2016 to February 2018.
Alameda couldn’t crack the Kimchi Premium either. But SBF quickly turned his sights on other Asian markets. Somehow it all worked. Alameda started raking in a daily 10% return on their starting capital of $50,000.

Christ the greed: `$50,000 * (1.1) ^ d` where `d` is the number of days they managed that kind of return.

When `d` is 30, the total is $872,470. `d` = 60? 15,224,081. `d` = 90 => 265,651,130. `d` = 120 => 4,635,453,440

What the hell was this moron thinking?

snowypine• 4 years ago

So, the problem here is d realistically is only 12-20. As much as SBF likes people to believe that he discovered a miracle trade, the reality was that he was only early by a couple of weeks and the rest of the world caught on afterwards.

The Rise and Fall of FTX

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