The Crypto Market has seen insanity over the last week with prices dropping across the board.
Bitcoin is currently sitting at around sixteen thousand dollars. The lowest level we’ve seen in about two years and altcoins have dropped by anywhere between 20 to 50 percent. This has all been triggered by the frankly explosive collapse of FTX, the second-largest cryptocurrency Exchange in the world that started about a week ago, and it came to the surprise of many. But ever since it started it’s just continued to get worse and worse and over the last few days, that’s been no different at all. The situation has continued to escalate, and things are getting worse, not any better. Today, we’re going to very briefly recap what happened up until a few days ago, and just so how many billion dollars have disappeared, and then we’re going to establish what has exactly happened over the last couple of days because, as I’ve said, the situation just keeps getting worse so over a week ago, we started getting rumors that FTX, the second largest cryptocurrency Exchange in the entire world was going to collapse because they had no money and the money that they did have was actually ridiculously volatile. Cryptocurrency coins, I put a video out that explained all of this, which you can watch if you’ve missed that, but in short, FTX staff came out and they all denied all these rumors. But in the end, all the rumors were true, and the company fell apart and collapsed over the course of about one single day. FTX Froze all their customers with jaws, so none of their customers were allowed to access any of the assets that they had. Given FTX, which was like a bank run, but in crypto, after that, there was lots of uncertainty Binance the number one largest cryptocurrency Exchange in the world said that they would go out and buy FTX and save the company. But then they had a look at FTX’s balance sheet, and it turned out to be so much worse than they thought so they changed their minds and backed out of that deal. FTX then was left without a savior, and so they were running around every place. You can imagine New York, Silicon Valley, begging for investor Capital, begging for funds to try and save the company, and they found no luck at all as a result of that, the company is now widely believed to be valued at one single dollar when in reality It actually has about 10 billion dollars’ worth of debts because of all this confidence in the crypto Market as a whole has broken down. So, investors sold their coins, they sold their cryptos. They got out of these risky Investments, and crypto prices crashed all over the place. As I said earlier from anywhere from 20 to 50 percent, that was what my previous video explained, though, with much more detail and explaining just the timeline behind all those events, but that’s where we left off just a few days ago. Since then, though, things have gotten much different and unfortunately, they haven’t changed for the better at all. So, first, FTX originally went incredibly quiet when this collapse was happening, and they just stopped announcing anything and almost ghosted the entire world. But on the 11th of November SPF or Sam bankman freed the founder and CEO of FTX announced on Twitter that FTX is officially bankrupt and has been filed as such in the United States. He posted this long Twitter thread here that you can see behind me, but he really didn’t say anything worthwhile or substantial there. He apologized for his disgustingly shameful actions. He says he’s still trying to fix the problem and he says he’ll give us more information in the future, but no one is holding their breath. It’s worth noting that, just one day before he put out this announcement here, he said that all is fine with FTX and that you shouldn’t worry about anything that they’ve got 60 billion dollars in cash, and it seems obvious from that alone. That fraud has been going on now. We saw a lot of other things that emerged as well like the fact that there was this woman who ran the Alameda research, which was a subsidiary of FTX that lost 10 billion dollars trading. Well, she used to have a sexual relationship with SPF the CEO of FTX. She also went on a podcast a few months ago and basically laughed at the idea of risk mitigation and revealed how insanely irresponsible she was with customers’ assets. These two are going to end up in jail at some point now, just because FTX has officially declared bankruptcy, it doesn’t mean the turmoil and the insanity is over for that company, as it just gets worse from here, because abnormalities started to emerge now. For this and everything else I cover today, the situation is still evolving, so it might have changed updated at the time you watched this video, but FTX’s wallets and their assets started to be siphoned off, with over 400 million US Dollars being lost. Now we are right now at the time of me, making this video, not 100 sure what this is. Some people are claiming it’s a hack from criminals, stealing from the company, while some say they’re FTX employees and their owners are running away with investor money and trying to steal it all. The timing is incredibly suspicious. How convenient is it that, as soon as the company collapses, on the same day, criminals break in and steal all their remaining assets? FTX is yet calling this an abnormal normality and they say that they are investigating it, but nothing else is yet known. Many people are just saying: delete the FTX app. If you do have it don’t log on to it, don’t try and move anything delete the app as criminals might compromise it, and you don’t want to risk losing whatever minuscule amount of assets you have left again. This is still a developing situation. So, we’re not one hundred sure what’s happening with this, but it doesn’t look good at all. Now, if you’re, like me, you’re constantly thinking about how best to get an edge on the markets and really make your investments work for you, then you need to hear about this. At this point, rumors about SPF himself started to emerge. The first one is what you can see behind me on this tweet: the idea that he might have flown away from his home in the Bahamas and run away to Argentina. Now, this came from Flightradar24 a Twitter account that tracks planes, and they said according to tweets, the founder and former CEO of FTX is en route to Argentina after the FTX collapsed earlier this week. However, these claims have been denied by SBF, who says he’s still in the Bahamas, his home, and there’s been no evidence of either of these claims. So, we really don’t know what’s going on, but this isn’t good Optics. We also started getting a bunch of rumors that SPF has just been playing video games over the last few days, instead of trying to save the company, which again are just rumors and unconfirmed. But SPF has not at all covered himself in glory and confidence about him is ridiculously low for obvious reasons, which is evidenced by these rumors coming out, left-right, and center. Now, unfortunately, for the crypto Market as a whole and The Wider investor Community. This is where things get even worse because it’s where contagion starts, and other companies are starting to collapse as well. Now the first one to fool is block 5 AI, which is a crypto lender that almost collapsed months earlier. So, we’ve already seen most of their customers take their money out, but you might be asking: how did they collapse? Well, they were rescued by FTX, who bought them out, but now FTX has fallen. Block Phi is dead as well with them freezing withdrawals once again, so they are now in the same position, and most people with assets on blockfi have lost their money. There were also some rumors about what happened here, but these are, yet still unconfirmed. This tweet here reads as follows: from a blockfi employee, the only reason FTX bailed us out was to get our user funds onto their platform to use in their shell game. They applied immense pressure to get Block 5 funds mitigated to FTX custody. Executives told employees not to ask questions about the move. FTX didn’t bail out the block fight but used their assets to bail themselves out months ago, and no one knew that this had happened until now. Again, this isn’t guaranteed to be true. Let’s remember now, the only saving grace here for this crash surrounding the block fight is that it was already in loads of trouble back when Celsius fell. So, as I said, most people who used to have money with blockfi have already taken their assets out, so losses here for investors are going to be much smaller than those for FTX. As far as contagion goes, though, the story doesn’t end yet, as we then see, Hong Kong-based exchange AAX fall apart yesterday as well. Now. The reasons here are not entirely clear. They claim that this was due to a failure of an unidentified third party, but they also say they have no exposure to FTX whatsoever. So, we don’t know who they’re referring to really, though it’s the exact same story they gambled with their customers’ assets. They ran out of money, and they ended up losing everything they have also suspended withdrawals for their customers. So it’s the exact same thing as with block fire and FTX customers who had their Assets in this small Hong Kong exchange, while they’re like now gone now, you probably hadn’t even heard of this exchange before I know I personally hadn’t it was relatively small, but it wasn’t tiny with trading volumes of about 2 billion US dollars every single month now for one of these scariest pieces of news that we’re seeing right now and its surrounding crypto.com and it might be about to crash now once again, there is nothing confirmed, but rumors are Around the crypto.com is facing problems and is on the brink of collapse. Just like FTX was now. This is particularly important for me to note, because I used to use crypto.com a lot, and I had well over six figures in crypto and stable coins on that site. Before the Celsius collapse happened, but in the wake of that Celsius collapse and the sudden realization that stablecoin yielding was riskier than I thought, I sold everything and took everything out of crypto.com, so I personally haven’t had exposure there for about six months now. If you have money in crypto right now, you need to be seriously careful and consider getting it out while you can, and that should be said for any exchange or cryptocurrency around right now, be very careful. Be aware that you could lose everything and if I had any money on these crypto companies, I would take it out instantly, even if I had the in Binance, which is the safest option. Now, what are the specific rumors for crypto.com? Well, CZ, the founder of Binance again, the biggest cryptocurrency Exchange in the world has been hinting that other exchanges are about to collapse and in specifics, he said if an exchange must move substantial amounts of crypto before or after they demonstrate their wallet addresses. It’s a clear sign of problems.
Now this comes right after crypto.com, again, a top five Exchange in the world and one with loads of mainstream adoption from celebrity adverts and endorsements and loads of advertising on top-tier sports like Formula One well, they just moved hundreds of millions of dollars’ worth of crypto Around supposedly two random wallets owned by someone else, crypto.com CEO can come out and said that this was just a mistake and that they would do things differently in the future.
To ensure this mistake doesn’t happen again, investors are very unconvinced and think fraud or money laundering or something to that extent is going on now. They said that they will release audited proof of reserves, but that takes time – and these things are often promised by many exchanges who then just don’t, do it at all, and they also said that they will show their reserves, but not their liabilities, which is a bit worrying as well as a result of all of this turmoil, crypto.com’s coin called Kronos or Crow has crashed in price down 22 over the last week. Because of this lost faith and to summarize crypto.com hasn’t crashed yet, and it may not be about to. These may be entirely unfounded.
Rumors but rumors are circling and with everything else that has happened, no one should be taking any risks here now there is one final big thing to talk about regarding this whole FTX and SPF ordeal, and this one I have to be very careful about because it Is the kind of stuff that I could easily get back and for even mentioning it here on YouTube, so I’m only going to State what the rumors are, what the facts are and not say my opinion on anything here. Hopefully, this way YouTube can’t try to censor me and delete me for stating something.
Regarding the opposing view. Now, SPF was the second largest donor to the US Democrats, giving them 36 million US dollars for this midterm election that just went through, and overall, he’s. Given out over 70 million dollars’ worth of donations now, this is 100 true and cannot be denied by anyone, and I am just reporting this as a fact here is a quote from the financial times, just to prove that this is widely accepted and not anything related To a conspiracy theory, he also became one of the most prominent crypto representatives in Washington, supporting digital asset legislation and hiring former Regulators as advisors. So, according to the financial times themselves, and not me, he was lobbying Democrats and government officials in the US in general for crypto regulation to shoot his needs now. This is where it starts to get a little bit dangerous for me to say too much, but the rumors follow this thread behind me here, which you can find if you want reports that FTX cryptocurrency has been used in a Ponzi scheme involving the Democrats and Ukraine are circling the internet a few months ago, FTX and Ukraine partnered together on a crypto donation website to help fund the Ukrainians in the war and SBF has also been a vocal supporter of Ukraine. Now the country raised over 60 million US dollars through cryptocurrency and Ukraine ranks number two for crypto use in the world. Now the big rumors are that money sent to Ukraine was invested into FTX and then funneled back to U.S Democrats in America. This is an accusation of massive fraud and money laundering from American politicians using crypto, FTX, and Ukraine to get it all done, and that is really all I can say on this issue.
These are allegations and I’m just stating that the allegations Circle on the internet is right. Finally, just one last thing to cover for today, many people are asking why stocks are going up as this crypto market meltdown is happening and asking, if there’s an inverse correlation here, and the answer is no. This is just traditional investors, looking at other things unrelated to the crypto Market. We got a low CPI read last month and many investors think that this is the end of inflation, which is a very dangerous thing to think, because every time these investors have said it before over the last two years, they’ve been 100 wrong, but they’re rushing into Stocks once again, based on that idea, this bear market rally doesn’t have anything to do with crypto at all, but this idea of inflation over might actually be helping crypto a little bit as investors think that the monetary environment is going to be better over the coming months.