- Charles Hoskinson did a live stream talking about the recent FTX acquisition.
- Hoskinson also spoke about the integrity of crypto markets after such events.
- The CEO also stated that FTX was more akin to LUNA through a series of relationships.
Charles Hoskinson drops a video talking about the recent FTX drama and the integrity of the cryptocurrency markets. Hoskinson mentioned that FTX is a major financial player and that they do a little bit of everything.
FTX and the Integrity of the Cryptocurrency Markets https://t.co/Ys309wFfsZ— Charles Hoskinson (@IOHK_Charles) November 9, 2022
He spoke about SBF, stating that he was going through a tycoon surge throughout this year. SBF was also able to make several acquisitions this year.
FTX went through a series of transactional relationships closer to what occurred with LUNA.
Hoskinson spoke about Binance making a deal to help out FTX. He makes a comment about the anticipated due diligence and how frequently it results in the discovery of “uncomfortable things.”, especially the founders’ and the entities’ financial relationship (how funds were used, how much risk exists within the entities).
According to him, there is a non-zero chance that the acquisition will fail due to inadequate due diligence. Hoskinson stresses that, considering the size of the FTX, if the due diligence proves that they are far more distressed, it will have cascading effects through the cryptocurrency market.
Hoskinson also highlighted the fact that Cardano has no debts or connections to these entities. As a result, it has no direct impact on the ADA environment, but as members of the same cryptocurrency community, it will.
He also emphasizes the fact that FTX has been actively lobbying in Washington, DC, and that its failure might alter the political climate.
The FTX drama has definitely had a cascading effect on the whole crypto market, as major cryptocurrencies including BTC and ETH are currently down 8.5% and 15.7% in the last 24 hours, respectively. The FTT token has also slumped by over 74%.
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