If you weren’t reading any news last week, this is what you missed.
BFC was created in April 2022. FTX bankruptcy is the second earthquake in the crypto world since this time. The first one was the Luna case in May.
Looking at the past, everyone saw a lot of red flags.
That’s why it’s important to remind everyone in web3 that your tokens are safe only in your cold wallet.
PS. Learn more about BFC on our Discord.
🏃🏻♂️ SBF on the run
⚖️ Is FTX bankruptcy good or bad for crypto?
💰 Not your wallet, not your money!
✔️ Blue Check Problem
If you don't know the situation:
- FTX and its investment company Alameda were collateralized by their token, FTT.
- CZ - Binance CEO sold out some of his FTT tokens.
- The 2nd largest cryptocurrency exchange - FTX, was near bankruptcy.
- Binance, the biggest exchange, initially agreed to the acquisition of
- It looked like all was planned by Binance.
- Binance backed out of the deal after doing the initial due diligence on FTX
- SBN apologized to users about the situation on Twitter and disappeared.
- FTX froze all users' assets.
- Someone hacked FTX and withdrew most of the funds.
- SBF resigned from being a CEO and filled for bankruptcy for both FTX and Alameda Research.
Sam was portrayed as a great entrepreneur who gave to charity and fought for important causes. Advertisements with his face were everywhere. He supported president Joe Biden, and he was involved in the regulation of the cryptocurrency market.
The reality was cruel. Most likely, the network of companies associated with SBF needed constant injections of new cash. The company was trusted, and even significant funds were invested in FTX.
You’re probably wondering what Sam Bankman-Fried (SBF) does in this situation.
There were rumors of his private jet flight from the Bahamas to Argentina. The latest news is that he is still in the Bahamas, under police supervision. What is he doing?
He’s playing League of Legends. 😆 I’m not playing it, but I heard he isn’t great at this game either.
He also tweeted.
We will see if he will go full-Do-Kwon-style. 😃
⚖️ IS FTX BANKRUPTCY GOOD OR BAD FOR CRYPTO?
There are a lot of comments in the mass media that FTX's bankruptcy is caused because crypto is not trustworthy. People thought that FTX was a crypto business and that crypto was terrible. It's because they don't understand that.
We know that the FTX case impacts the whole web3 world. That’s why we asked Bored Founders about their opinion on that topic.
Is FTX bankruptcy good or bad for crypto?
I'd say it's bad in the short term and good in the long term. Right now it is causing a lot of panic, prices are dropping, maybe some other projects will be hit by ricochet, but in the long run I think the current times will be seen as a part of market-clean-up process and the beginning of the next bull run. Bull run during which the next Pandora's Box will be built and when it opens we'll get to the similar place as we are now.
It mainly depends on all evidence of how FTX and AR were set up. If this was from the beginning wrong. Then it is in the long run good for crypto. It is very important to look that it is probably not an issue with Crypto itself, but with financial markets. Still, similar bankruptcy is possible in traditional finance as well. What crypto brings is decentralization and p2p protocols. FTX is still CEX/Centralised solution known from traditional finance. Here we have an area for education for web3 media projects.
We can add Wirecard and WeWork as examples from traditional markets for further learning.
💰 NOT YOUR WALLET, NOT YOU MONEY!
I remember hearing about that in the first month of my crypto journey. It was strange because I used my wallet earlier and started using exchanges like Binance,
Coinbase, or FTX. Since the beginning, it has been clear that exchanges are the next Google,
Microsoft, or Facebook.
The foundation of web3 is decentralization. One of the most basic rules here is to trust nobody. Blockchain is a superior technology because all history is written in the network. We don't need to trust others because we can always check the contract and its history.
To ensure your tokens are safe, they must be placed in your wallet. It should be trusted. Only you should have a private key to it. You're the most critical element of your assets' security. If your tokens are not in your wallet, you have no control over
Most recommended are hardware wallets that are used only to store your most valuable assets - crypto or NFTs. You have a lot of materials you can find on the Ledger Academy site. We also recommend the great podcast about security in web3 by PROOF Collective.
Your FTT tokens would lose value, but if you have it in your wallet, you can do whatever you want. No one could block your access to it unless you were hacked. Worth checking is Punk6529point of view.
This kind of educational material will be helpful for you.
Let us know what else you want to know? Do you have any questions?
Reply to this mail! 📫
✔️ BLUE CHECK PROBLEM
Verification by $8 is the first thing that Elon Musk
introduced on Twitter, and it did not work. You're asking why?
Long story short: a fake company bought verification by $8 and posted some news in the name of the original one. Investors started to sell information based on fake news. Elon said this was too early for this functionality, reverted it, and postponed.
Is it Twitter's fault?
Probably not, but instead of making Twitter a better place for users, it got worse. Instead of an army of bots, we've got scammers influencing the market. 😛
Hope you know something new 😎
If you’re more interested in web3 topics, join BFC discord.
We’ve got some smart and experienced people onboard.
This newsletter is for educational purposes only. Do your own research.