FTX files for Bankruptcy: Bye Scammer!

I think in every one of these videos, I struggle to figure out how to begin a video because so much has happened in the past 24 hours. And it's just ridiculous. But anyways, I think the biggest catastrophe in crypto, the story of the decade is finally in many ways over. So FTX has finally declared bankruptcy. I guess this is what we kind of expected in the past few days. They had a gigantic hole to the tune of maybe $9 to $10 billion of customer funds, which essentially they couldn't pay back. This is how the whole thing started. Withdrawals, pause. They couldn't pay back billions of dollars owed to users. And now they're declaring bankruptcy. Yep, that's life, right? Let me just make myself a little bit smaller here so you can see me. But the crazy part here is that FTXUS is also declaring filing for Chapter 11. So what they have here is they literally have 100 and so companies, actually 130 companies, additional affiliate companies here filing for bankruptcy. So the whole empire has fallen. And the crazy part is that Sam told us a little bit before that FTXUS was fine. It's a completely different legal entity and it's not affected. Balances are backed one to one. Nope. I mean, this guy, you can't even make this up. This guy is a complete psychopathic liar. I mean, he's psychotic, basically. Obviously, I am affected. Obviously, I am very upset. But at the same time, I guess the silver lining here is that FTX has been integral to this whole cryptocurrency space. But they are such a bad actor. I mean, if you now with the benefit of hindsight and you look back at it, they were essentially rogue trading. Their CEO was rogue trading. Their whole entire empire was built on lies because they promised never to use user funds. But that's exactly what they did. They used user funds and went rogue trading and lost it all, right? That's the only way to explain why they can't pay it back. And they kind of betrayed their entire company, too. I think there are a lot of people I talked to in the past 24 hours trying to ask if they're okay. And yeah, they're just... A lot of people were just kind of like shell-shocked at this whole event. Now, this is going to have a huge impact on our industry. Because, you know, $10 billion is not a small number, right? And I'm not very optimistic because, you know, this whole can grow. In fact, when they file for bankruptcy, how much they owe, it depends on market conditions. If market conditions don't go well, it could grow. So it's going to have a huge impact on this cryptocurrency industry overall. And the craziest part is that because FTX was so... And advertised as so regulatory compliant and they passed their audits, people that believed in them were essentially lawmakers, politicians, and, you know, banking industry, right? Well, whilst we may not like them much, they basically provided a way for fiat to come into cryptocurrency space. And a lot of people are saying, you know what, you know, crypto is going to survive this. Obviously, it will. But the problem is there's a huge reputation lost in the cryptocurrency industry. And in many ways, what I was kind of hoping for was that the crypto industry will grow and more people will have more confidence coming into the space. And, you know, we may be entering a phase where users don't have to worry about their funds being lost. But that's clearly not the case. So anyways, everything's scrambling right now. I think I see, you know, pictures of the FTX arena. People are trying very quickly to remove that branding. I mean, distancing themselves from FTX. There's a lot of also spokespeople for FTX, our main key players. And yet again, they're distancing themselves. But I don't think people will forget that easily. Maybe it'll take two or three years for people to forget this debacle. But, you know, I guess at this stage, it is what it is, right? Now, I do have a personal story here as well. I'm pretty transparent. People looked at me and were like, oh, yeah, you look like you just got some money in FTX. Yes, I did. So the story for me is that I've used FTX as a payment gateway. So it was one of the, pretty much the only exchange in Hong Kong where you can easily put money in and take money out of crypto and bring that into the banking sector. I can definitely not live, you know, fiat free at this current point in time. And yeah, that's how I used FTX. It was very, very convenient for me to move money in and out of crypto. Now, did I have more money than I should have had? Yeah. In hindsight. Yes. Yes, I did. And also, of course, was it a pretty penny? It definitely was. So in that respect, you know, I'm pretty angry. And I guess I'm not as angry. I don't visually see you. I guess you don't visually see me being that angry. But I did have a very angry post yesterday. And, you know, I kind of slept on that. So I guess, I guess like emotionally I'm more okay now. I feel like, you know, if you want to see a lot of profound swearing, this is my Twitter post for you. I think I'm also a little bit more upset about the people that he betrayed to as well. Like it's for me, because I've hold wallets and because I do practice what I preach, which is to put cryptocurrencies onto ledgers. You know, I'm still fine. Right. I lost some stuff. I'm still fine. I'm not going to, you know, it's still risk managed. Right. But I do know a lot of people who didn't manage the risk correctly, especially a lot of people who kind of came into this industry. And then they put all their crypto on an exchange because they want to trade it. They want to make more money. And now it's all gone. Right. In fact, I even have someone that came up to me and said, hey, you know, can we put some more cup noodles in a pantry? You know, they can't really afford expensive meals anymore. Right. So fuck you, Sam. Like, seriously. Like, honestly, like the number of people that Sam has ruined here is ridiculous. And this also goes to employees of FTX as well. A lot of them, you know, I try to reach out to a few and they just said they found out exactly about this the time, you know, the freaking Twitter came out. Right. So, you know, a lot of them thought it was a joke at first. But anyways, you know, for employees of FTX is probably even worse because they dedicated their lives. And the worst part, right. Like, like the part that I get angry at is like Sam even asked his employees to buy equity and invest in the company. Right. And I'm guessing at it here, like at that time, they were probably making a loss or something. But he pretty much scammed his own employees, too. I mean, who does that? Right. Like, honestly, who what what sort of demon are you? Anyways, that's my rant. That's that's my frustration, the entire event. But I mean, I guess, you know, after thinking about it for a while, at least as over. I mean, this is the quickest resolution we have to a crisis, I guess. I mean, there were other crises in crypto. But, you know, at those times, the founders like, yeah, maybe you get money back. Maybe not. And it drags on for weeks on end. Right. But here, I think five days and we resolve this. You know, FTX is bankrupt. Now we can move on with our lives. Right. So I think that's that's I guess that's a silver lining. But the problem here is that there's still other companies that are affected by FTX because this isn't just a few million dollars or the lower end of a few billion dollars. This is, yeah, like maybe 10 billion plus if you count the coins and the illiquid assets on exchange. So there's going to be a lot of cascading effects. So, you know, first and foremost, you know, what's going to happen to Voyager? You know, they're supposed to bail Voyager out. But who knows right now? The next one that's going to be very insane is going to be BlockFi. They limited platform activity, including pausing client withdrawals. So, yeah. So that means they're in pretty deep trouble. Right. And at this point, I don't think you even trust them. They're pulling the same thing FTX was pretty much doing. You know, like you can't even make this stuff up because if you look at it, they were essentially saying, you know, all BlockFi products are fully operational. They were an independent business entity, blah, blah, blah. This was like two days ago. They're saying everything's fine. Basically, they're saying, yeah, don't make a bank run on us because everything's fine. Well, now with this announcement, everything's not fine. Right. I mean, this whole space, I mean, if anything, we've learned from FTX is don't trust anyone. And I made a post out to say, you know, at this point, as, you know, people who have crypto and who use services, honestly, withdraw. Withdraw from these exchanges ASAP. So, HuobiKuCoinCrypto.com. And this doesn't just apply to them. Right. I wasn't trying to be, you know, specifically targeting a few. You know, I've heard some withdrawal, like rumors of withdrawal problems for specific people on these exchanges that are starting out. But this also applies to the entire industry overall. Right. Like, dude, if you don't have your funds on a ledger or trezor, like when you have funds on a ledger or trezor, these are yours. Right. Like that's 100 percent your custody on exchanges. You have no freaking idea what is going on. Even if it's 98 percent back, there's two percent that might be like out somewhere. And honestly, like I've spoken to a lot of people in the traditional finance industry. It's a common practice for banks to just take customer funds and just deploy them elsewhere. Right. And this always happens everywhere. And that applies to crypto, too. So it just depends. Like it's just a matter of solvency, like, you know, how solvent are they? And I don't want to test right now, especially in this period of time. There's going to be a lot of smart people pulling their money out first. So it's kind of Lord of the Flies at this current point. Right. So just be careful, guys. I've also seen people like Waikukoin. They're hardcore legit. You know, people are like strongly defending positions. And honestly, the stronger someone tries to defend something, I think the more scared I'm going to be because that means that they will stand to lose something if everyone makes a withdrawal. So I think the most confident people that can come out at this point are the ones that are saying, yeah, just make the withdrawal if you want. Right. Like, feel free. We're 100 percent back. There's confidence. Right. Do it. And if you do it and, you know, you decide that you need to trade in the future, you can always put it back. Right. There's nothing to lose from this. So anyways, I don't I don't understand why there was even a like disagreement on this. But, you know, it is what it is. Crypto is a little bit weird sometimes. All right. Next is obviously in the next few weeks, my take is that crypto is going to be extremely volatile. This could be a time when even crypto can move up. Actually, it's going to be quite crazy. But here's my theory on this. Right. Because everyone's shocked right now. It's like it's like watching the most spectacular fireworks show, you know, like billions of dollars blowing up all at once. Right. Everyone's going to be here. Everyone's going to be kind of itching to trade and play around with crypto and speculate a little bit at this current market. So I actually take that right now. Yeah. It's going to be a time when markets could actually move up. But the problem is that the damage has been done long term. And I'm going to in this during this period of time, I'm going to de-risk certain assets. All right. This is that's just my take. If you want my take on what's happening in crypto and what I'm strategically doing myself, not financial advice, of course, I am going to de-risk certain assets. I'm prepared for a long bear market. I feel like because the whole FTX debacle, the contagion is not felt yet. We're going to see kind of more and more services collapse in the next few weeks or months or so. That is going to cause this entire industry to allow people to lose faith in this industry. And, you know, it takes one black swan to put us into a very long bear. So I'm prepared for it. All right. Am I do I want this to happen? Obviously not. Right. Like no one wants this. I have assets in crypto, like a lot of assets in crypto. But I'm making the necessary precautions. I'm making the defensive measures necessary to make sure I survive. All right. And of course, not just survive, but I also have funds to deploy in a long bear. All right. That's also quite important to say. I'm going to point this out here. There's a very, really nice excerpt from a up only video where they talk about, you know, people tend to not invest during a bear when things are most profitable and people lose interest. Right. I 100 percent agree. That's what's going on. I mean, I see that with my channel numbers as well during the bear market. No one cares. All right. Everyone's just kind of like, yeah, I'm holding on. Like, I mean, they're eating ramen. But I don't really see comments saying, yeah, I'm heavily deploying capital during a bear. But that's when things are the cheapest. Right. You know, do you want to buy Bitcoin at 3K or do you want to buy Bitcoin at 60K? Right. Go figure. So for me, I'm just making the strategic option here. I'm increasing the amount of stable coins that I have. And I'm going to be prepared for a time when people lose interest. I'm not going to lose interest. I've survived this. But there are other people who will. So, you know, when when the time is right. And you probably see that in the comments of these videos, too. Like when comments go down and people stop caring and people, you know, just don't give a crap anymore. That's likely the bottom. Right. But for sure right now, that's not the bottom. For sure right now, everyone's just watching fireworks. People are going through, you know, the anger, denial and then degen YOLO trade to try to make it back. I hope you guys don't have to go through that. That's going to be ridiculous. You know, YOLO trading, as Alameda proved, rarely works. It's just strategy, long term planning, surviving. And that's what we're good at. So anyways, that's my take on things, guys. I hope this wrapped up this story. It was a pretty shitty story to begin with. Honestly, if you have like I don't care about swearing. Like, fuck you, Sam. Like, honestly, like you did this. You literally, you are the literal fucking devil. Like, honestly, like preaching effective altruism, trying to save the world, but you just fucked over everyone. So fuck that guy. Anyways, guys, sorry for the profanities, but I think this is appropriate to voice out everything at the end of the video. I think I'm going to move on from that. And I told you guys my strategies and everything that's going on. We're going to kind of follow up next week. I think there's going to be more contagion effects next week, to be honest. We're going to follow that up. So make sure you subscribe to Facebook for that. And with that, guys, I hope you have a good weekend. I'm going to take a little bit of time off just to, you know, relax a bit. I think it's been a stressful week, but at least it's over. Right. So, guys, thanks for watching. See you next one.