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


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 boom. But Lehman bonds were backed by overvalued homes, and 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

[email protected]


European recessions

The UK is most likely in recession, with its economy shrinking 0.2% in the third quarter. Growth in the service sector has stagnated, growth in the construction industry has slowed, and factory output is down. The Bank of England expects this to be a prolonged recession, possibly until 2024. Meanwhile, the European Commission said this morning that the EU is also likely to tip into recession. recession in the current quarter, with a return to growth in the spring. Fortune

IBM chips

IBM will develop next-generation semiconductors in partnership with a new Japanese chipmaker that will be backed by domestic titans such as Toyota, Sony, NTT and SoftBank, as well as the Japanese government. The new company, Rapidus, is trying to revive the Japanese chip industry and reduce dependence on Taiwan. It also shows how Japan is choosing sides in the growing US-China chip war. FinancialTimes

Vaccine lobbying

Politico and the Bureau of Investigative Journalism have a compelling story about the lobbying and threats Big Pharma allegedly used to try to kill the proposed COVID vaccine intellectual property waiver. The Janssen division of J&J is accused of having threatened to withdraw its investments from Belgium if the country backed the waiver request. J&J denies the claim. UN officials have called for further investigation. Policy


’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

Elon Musk warns Twitter bankruptcy is possible after telling employees ‘tough times’ are aheadby Bloomberg

Investors shake off months of bad news to give stock market best day in two yearsby Associated Press

These bubbling real estate markets look like bankruptcies – and they just sank Redfin’s businessby Lance Lambert

The kids are fine, but they’re worried: Gen Z is working harder and saving more than any other generationby Megan Leonhardt

This edition of Daily CEO was edited by David Meyer.

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