Bankman said his immediate instinct prompted him to enter arbitrage tradingin the sense of buying a currency bitcoins on a low priced exchange and resell it on another exchange as a stock exchange South Korea at a high price and make a large profit from the difference in price, in a process called banker Premium kimchi mix, referring to the dish pickled cabbage; famous in korea.
* After a month of personal immersion in the market, it launched banker His trading company, Alameda Research, is named after his hometown AlamedaCalifornia, with the goal of expanding the opportunity and working there full time.
* Bankman opened the door to arbitrage in front of others through his firm, which revealed last September that it was sometimes making profits of up to a million dollars a day from cryptocurrency price differences between world exchanges.
* According to experts, SBF, which is the nickname Bankman, has also gained credibility from speculators in the cryptocurrency world by implementing a relatively simple trading strategy which was not easy to implement in Cryptoworld five years ago.
*Bankman’s strategy included arbitraging bitcoin and creating connections for each of the trading platforms as well as building other complex infrastructure to achieve many of the operational aspects of placing a trade, and Alameda and its proprietary platform they became FTP extension One of the three largest trading platforms Cryptocurrency In the world, and from here the San Bankman Fried empire was formed, with a capital exceeding 32 billion dollars.
What happened and what caused the collapse?
Mustafa Al-Baramawy, CEO of Nojoud Company, which specializes in growing tech, blockchain and cryptocurrency companies in New York, said in statements to the website "Sky News Saudi economy" The collapse of the empire of FTX or Sam Bankman has several reasons, as Bankman did wrong and uncalculated actions by withdrawing a large part of the money of FTX depositors, estimated at around $8 billion, and using it to support other companies operating in business And the blockchain and bitcoin industry and pumping money into Almeida doing digital arbitrage work.
He added that there was an $8 billion shortfall in depositor balances in FTX and Bankman was unable to pay this shortfall due to his loss through Almeida in digital arbitrage and the falling price of digital currencies, which it also led to a great loss in the capital of Almeida.
He explained that in order for Bankman to try to get out of the crisis, FTX was offered for sale to Binance, the world’s largest digital currency trading firm, but Binance, after reviewing Bankman’s financial situation, declined the acquisition and said it would not be able to handle the scale of the large losses in it, which represented a major second hit, causing further FTX breakouts.
Al-Baramawy said Sokoya is one of the largest financing companies technology companies In the world, I checked FTX’s financial situation and found its balance to be close to zero, so it filed for bankruptcy and that it would not be able to fund it again, and its money that it had funded before was considered non-existent and that this company is considered a non-existent entity, and so the Bankman empire collapsed overnight.
The future of the digital currency market
For his part, the director of the Digital Marketing Academy of the Ministry of Communications and Information Technology in Egypt, Mohamed Hanafi, said in statements to MEE "Sky News Saudi economy" What happened with the Bankman empire from a rapid collapse, although it is not surprising, but it will greatly affect the world Cryptocurrency trading Many emerging companies are working in this field Blockchains and crypto.
He explained that the world of digital currency trading and the cryptocurrency market has mainly suffered since its inception from a crisis of trust among people around the world, and the collapse of FTX further increases the state of distrust and also eliminates the land that these companies have gained in the field of global economy in recent years.
And he added that on the other hand what happened will push governments to look more suspiciously at the world of digital currencies, and those governments will intervene to impose laws that tighten the screws in this field in order to protect people’s money and also to protect the economy from the shocks caused by such a crash, especially since there are many depositors who lost billions of dollars overnight.
And he added that there is another problem related to this extraction In cryptocurrencies, one of the most damaging areas for the climate, as it has been monitored that mining that took place in the United States alone caused 37 million tons of carbon emissions, equal to three times the emissions generated by factories coalAnd since there are about two billion cryptocurrency mining devices in the world, it is very dangerous for governments to impose more restrictions on this market.
It should be noted that Sam Bankman’s management of FTX is currently under a fraud investigation by federal prosecutors New Yorkwho began contacting potential witnesses to prosecute the case.
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– I started a story Fried Sam Bankman With the cryptocurrency world in 2017 – as he said in previous meetings – while browsing the cryptocurrency pricing site, he noticed that the price is uniform and close in most world stock exchangesbut found that the price is almost 60% higher on some exchanges like mine Japan And South Korea, and that was fun for him, as he said.
Bankman said his immediate instinct prompted him to enter arbitrage tradingin the sense of buying a currency bitcoins on a low priced exchange and resell it on another exchange as a stock exchange South Korea at a high price and make a large profit from the difference in price, in a process called banker Premium kimchi mix, referring to the dish pickled cabbage; famous in korea.
* After a month of personal immersion in the market, it launched banker His trading company, Alameda Research, is named after his hometown AlamedaCalifornia, with the goal of expanding the opportunity and working there full time.
* Bankman opened the door to arbitrage in front of others through his firm, which revealed last September that it was sometimes making profits of up to a million dollars a day from cryptocurrency price differences between world exchanges.
* According to experts, SBF, which is the nickname Bankman, has also gained credibility from speculators in the cryptocurrency world by implementing a relatively simple trading strategy which was not easy to implement in Cryptoworld five years ago.
*Bankman’s strategy involved arbitraging Bitcoin and creating connections for each of the trading platforms as well as building other complex infrastructure to achieve many of the operational aspects of placing a trade, Alameda and its proprietary platform are you become FTP extension One of the three largest trading platforms Cryptocurrency In the world, and from here the San Bankman Fried empire was formed, with a capital exceeding 32 billion dollars.
What happened and what caused the collapse?
Mustafa Al-Baramawy, CEO of Nojoud Company, which specializes in growing tech, blockchain and cryptocurrency companies in New York, said in statements to “Sky News Arabia Economy” that the collapse of FTX or Sam Bankman’s empire has several reasons , how Bankman committed wrong and uncalculated actions by withdrawing a large part of FTX depositors’ funds estimated at about $8 billion and used to support other companies operating in FTX business And the blockchain and bitcoin industry and pumping money into Almeida doing digital arbitrage work.
He added that there was an $8 billion shortfall in depositor balances in FTX and Bankman was unable to pay this shortfall due to his loss through Almeida in digital arbitrage and the falling price of digital currencies, which it also led to a great loss in the capital of Almeida.
He explained that in order for Bankman to try to get out of the crisis, FTX was offered for sale to Binance, the world’s largest digital currency trading firm, but Binance, after reviewing Bankman’s financial situation, declined the acquisition and said it would not be able to handle the scale of the large losses in it, which represented a major second hit, causing further FTX breakouts.
Al-Baramawy said Sokoya is one of the largest financing companies technology companies In the world, I checked FTX’s financial situation and found its balance to be close to zero, so it filed for bankruptcy and that it would not be able to fund it again, and its money that it had funded before was considered non-existent and that this company is considered a non-existent entity, and so the Bankman empire collapsed overnight.
The future of the digital currency market
For his part, the director of the Digital Marketing Academy of the Ministry of Communications and Information Technology in Egypt, Mohamed Hanafi, said in statements to “Sky News Arabia Economy” that what happened with the Bankman empire was a collapse rapid, although it was not surprising, but it will greatly affect the world. Cryptocurrency trading Many emerging companies are working in this field Blockchains and crypto.
He explained that the world of digital currency trading and the cryptocurrency market has mainly suffered since its inception from a crisis of trust among people around the world, and the collapse of FTX further increases the state of distrust and also eliminates the land that these companies have gained in the field of global economy in recent years.
And he added that on the other hand what happened will push governments to look more suspiciously at the world of digital currencies, and those governments will intervene to impose laws that tighten the screws in this field in order to protect people’s money and also to protect the economy from the shocks caused by such a crash, especially since there are many depositors who lost billions of dollars overnight.
And he added that there is another problem related to this extraction In cryptocurrencies, one of the most damaging areas for the climate, as it has been monitored that mining that took place in the United States alone has caused 37 million tons of carbon emissions, equal to three times the emissions generated by factories coalAnd since there are about two billion cryptocurrency mining devices in the world, it is very dangerous for governments to impose more restrictions on this market.
It should be noted that Sam Bankman’s management of FTX is currently under a fraud investigation by federal prosecutors New Yorkwho began contacting potential witnesses to prosecute the case.
