Crypto

The nature of Crypto is revealed by the fall of Sam Bankman-Fried’s FTX

Hello.

For all of us struggling to grow our businesses day by day and dollar by dollar, it’s a bit daunting to watch someone like 30-year-old Sam Bankman-Fried start a company, build it to a $32 billion valuation. dollars and then crumble in a day. We at Fortune accompanied for this journey, put SBF on the cover of our August/September issue and asking if he could be the next Warren Buffett: “He could build an empire like the Oracle of Omaha – or crash and burn. We now know which one. SBF himself was direct in his Twitter analysis: “I do not careand should have done better.

In a sense, this is an all-too-familiar story of businesses built on excessive leverage. It’s the story of Lehman Brothers or the dot.com boom. But Lehman bonds were backed by overvalued homes, and pets.com actually shipped a lot of dog food. Crypto is more like tulip mania– there is nothing holding him back except the belief that he will eventually go higher. If this belief disappears, what remains? We may soon find out. Meanwhile, for those not invested in crypto, it’s a great spectator sport – rivaling Elon Musk’s takeover of Twitter. You can read Fortunethe cover here.

And since it’s Friday, some feedback. Lots of responses to my article on Monday vote of the last five as a means of solving the political problem of the United States. EG nicknamed him:

“Too complex…and complex is viewed by a wary public as lacking in transparency.”

DW was more open to the idea, calling it “very clever”, but ultimately concluding:

The founding fathers would have to rise from the dead for this to pass. And even they might fail.

But wait! The final five were indeed on the ballot in Nevada, and no founding father was spotted there, but the initiative appears to be ahead of the game as of this writing. Watch this place.

More news below.

Alan Murray
@alansmurray

[email protected]

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AROUND THE WATER COOLER

’10 cents on the dollar’: What happens if Sam Bankman-Fried’s empire is forced to sell off its investmentsby Leo Schwartz and Anne Sraders

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This edition of Daily CEO was edited by David Meyer.

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