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No.52⚡️FTX & Binance drama explained using Mean Girls 🎬 👱🏻‍♀️

No.52⚡️FTX & Binance drama explained using Mean Girls 🎬 👱🏻‍♀️

December 26, 2022

Gm. FTX & Binance drama explained using Mean Girls 🎬 Why crypto was screaming bleeding love yesterday 🩸 Oops, the Fed did it again by raising interest rates ✨ JP Morgan goes DeFi 💎 Your money questions answered on Cheres 📲

...and the deal is off. Bye FTX?? 💥 Here's the breakdown using a Mean Girls analogy.

Crypto has been screaming bleeding love🩸 and it got really bad yesterday. Within a day FTX went from a giant crypto exchange to being on the brink of collapse. We're talking about billions of dollars being wiped in a matter of hours.

How did this happen? Let's rewind. ⏮

Two days ago, CZ (head of Binance; FTX's biggest competitor) said SBF (head of FTX) had been talking 💩 about Binance to regulators...This is like when Regina George finds out Cady Heron is trying to make her fat by feeding her Kälteen bars and pushing her out of the ‘Plastics’.

So, out of spite, CZ threatened to scrap his entire $2B FTT stash (FTX coin and how they make most of their money). His tweet started a panic frenzy, everyone started to sell, and the price of FTT dropped ~15-20% 😱. Just like in Mean Girls when Regina releases the Burn Book to the entire school and ppl start fighting…us crypto holders are calling our parents asking to be picked up from school. 🥹

Alameda enters the chat…💬

Alameda is SBF's first company and FTX's piggy bank 🐖. Sorta how Regina's mom thinks she's a cool mom but actually more damage than not. This is cuz half of Alameda's assets (~$6B) were in FTT token - and we all now know it's a worthless token. But if Alameda's in trouble, FTX's in trouble.

At this point, Sam (SBF) tweeted saying everything is "fine" and Alameda's CEO said they'll be "happily" buying the FTT token as it plunges. Tryna avoid another Luna episode, people started withdrawing funds from FTX. Then SBF tweets that Binance and FTX are entering a "strategic transaction." OMG THE LIMIT DOES NOT EXIST. It's almost prom night. 👸🏻

🚩 Now, here's when things get...interesting. After spending a day looking into FTX's books CZ tweeted "Binance is walking away from a deal to acquire Sam Bankman-Fried's FTX."Binance ATE its biggest competitor overnight.

What a week...or wait it's just Thursday. Remember…Happy Hour is from 4 to 6! 🍸

Oops Fed did it again...

😪Last week the Fed raised the fed funds rate by 0.75%. This brings the fed funds rate from near zero to 4.0% in about eight months, an unusual pace of interest-rate hikes in the U.S. economy. On Thursday, the Dow, the S&P 500, and the Nasdaq Composite all fell down after the Fed’s meeting, despite having a great run in October.

Now what? 🤔There's a bunch of stuff Chairman Powell said after the meeting.

Fed is not seeing many signs that inflation has tamed at all. Until they see some impact, they’ve got to keep going and they’re committed to doing it.
Avoiding recession + a soft landing is still possible, but is seemingly more and more unlikely.
The terminal interest rate is now to peak at around 5.25% instead of the initial 4.5%.
Looking at the stock market's reliance on a soft landing, the ongoing war in Ukraine, and a potential energy crisis in Europe, experts expect a volatile finish to the year.

🙄 Jaimie goes DeFi after calling it a Ponzi scheme

JP Morgan Chase ran its first live trade on a public blockchain. Not a big deal obvs...but it kinda is. Especially bc Jamie Dimon called crypto tokens “decentralized Ponzis” just last month lol. Onyx, JPM's blockchain unit, performed the trades as part of Project Guardian, launched in Singapore. JPM issued 100,000 tokenized Singapore dollars (US$71,000) on the Polygon Layer-2 blockchain using the Aave decentralized finance (DeFi) protocol.

Project Guardian deployed on Polygon, a Proof of Stake scaling solution for Ethereum, to minimize transaction costs. Hella transparent about the gas fees. The project seeks to explore DeFi applications in wholesale funding markets. 🤑

“We clearly see what’s happening in the public domain and we can see how the innovation is creating not only new ways of doing financial transactions, but new types of products as well”

- Tyrone Lobban, Blockchain Launch and Onyx Digital Assets JPMorgan Head