onStrategy

FTX funded risky bets with customer funds

November 17, 2022
< 1 minute

Strategy | Business Models | Tech

There is a good thing in this FTX story going on: we are going to have a film! On the bad side, 10 billion “evaporated”.

 


FTX funded risky bets

Sources: Taleb’s paper; WSJMatt Levine in Bloomberg


 

It’s not a secret that I’m bearish on crypto and somehow bullish on blockchain technology.

Nassim Nicholas Taleb already demonstrated in a paper that Bitcoin, the all-mighty crypto, is:
1) not a currency, 2) not a store a value, 3) not an inflation hedge, 4) does not protect against “tyranny” and 5) not decentralised.

The overall situation in the crypto space reminded me of the “dot-com” bubble, which resulted also in billions spent on infrastructure which was later used by the next generations of startups launched between 2004 – ongoing.

So maybe, just maybe, all this money vaporised will not be in vain. Hopefully!

Discover posts:

Amazon's priorities

Amazon’s strategy: Infrastructure-as-a-service

“Third-quarter revenue gained 13% to $143.1 billion”, according to Bloomberg. Main takes: 1. The company has now 8 different fulfillment centers, compared to one in 2022. This is crazy. Why they have waited so long to do this? Countries like France, Poland, or Romania have at least 3 fulfillment centers (...)

Read more
Facebook and Meta logo

Meta is a cash cow and should act accordingly

“I want to take accountability for these decisions and for how we got here,” said CEO and cofounder Mark Zuckerberg in a statement after laying off 11,000 employees (13% of its workforce). Like I said in other posts (e.g. 1, 2), META’s role in the metaverse should be minimal, if (...)

Read more