Hilariously enough the reason this FTX shit happened is because he treated crypto the same fucking way brokers, hedge funds, and banks treat the stock market. Basically selling stock, or in this case coins, as “IOUs”… That he didn’t actually have backed up with real tokens … So when a “bank run” happened the guy behind FTX didn’t have the collateral to back it up and went under. The ENTIRE reason this happened is because when push comes to shove you can’t make a fake of a crypto coin. So when people demand “their” assets you can’t just hand them a synthetic… This is the difference with stocks… The crooks on wallstreet, the big banks, etc, have spent decades gaming the systems to they can just make fake shares out of thin air. It’s called naked shorting and it’s supposedly illegal but lmao you think the SEC gives a flying fuck? Hell no. There’s also a ton of ways for them to hide all this and certain exchanges don’t even have to report the data. Also these hedge funds can just get away with not delivering on their orders. It’s called an FTD “failure to deliver” and it happens all the time and all these places get is a slap on the wrist. Imagine if you bought a car for $50k and then the dealership hands you a pink slip and then you ask for the actual car and the dealers like “oh yeah, well turns out we don’t have any of those in right now but thanks for the money” then the government comes in and they wag their finger, and go “bad dealership, bad. Here’s a $500 fine now don’t do that again… But also you get to keep that money.” That’s basically how a major part of the stock market works… You will never see massive hot pieces about the corruption in the stock market though, but one guy actually gets caught doing it with crypto and faces actual repercussions and everyone looses their minds… Mind you I’m not defending crypto, it’s fucking dumb… But it’s actually less dumb then how the stock market works… And that’s fucked…
Very true. It’s why I avoid the stock market as well. The entire system is a giant pile of lies designed just to extract value from workers. But crypto is easier to dunk on people for because the stockmarket is so normalized in everyone’s lib brainwashing.
Hilariously enough the reason this FTX shit happened is because he treated crypto the same fucking way brokers, hedge funds, and banks treat the stock market. Basically selling stock, or in this case coins, as “IOUs”… That he didn’t actually have backed up with real tokens … So when a “bank run” happened the guy behind FTX didn’t have the collateral to back it up and went under. The ENTIRE reason this happened is because when push comes to shove you can’t make a fake of a crypto coin. So when people demand “their” assets you can’t just hand them a synthetic… This is the difference with stocks… The crooks on wallstreet, the big banks, etc, have spent decades gaming the systems to they can just make fake shares out of thin air. It’s called naked shorting and it’s supposedly illegal but lmao you think the SEC gives a flying fuck? Hell no. There’s also a ton of ways for them to hide all this and certain exchanges don’t even have to report the data. Also these hedge funds can just get away with not delivering on their orders. It’s called an FTD “failure to deliver” and it happens all the time and all these places get is a slap on the wrist. Imagine if you bought a car for $50k and then the dealership hands you a pink slip and then you ask for the actual car and the dealers like “oh yeah, well turns out we don’t have any of those in right now but thanks for the money” then the government comes in and they wag their finger, and go “bad dealership, bad. Here’s a $500 fine now don’t do that again… But also you get to keep that money.” That’s basically how a major part of the stock market works… You will never see massive hot pieces about the corruption in the stock market though, but one guy actually gets caught doing it with crypto and faces actual repercussions and everyone looses their minds… Mind you I’m not defending crypto, it’s fucking dumb… But it’s actually less dumb then how the stock market works… And that’s fucked…
Very true. It’s why I avoid the stock market as well. The entire system is a giant pile of lies designed just to extract value from workers. But crypto is easier to dunk on people for because the stockmarket is so normalized in everyone’s lib brainwashing.