CZ vs SBF 101

Issue 21 (November 2022)

Calm. Collected. Moisturized.

Lyn is here to sum up what’s happened in the last 24 hours:

Lyn Alden @LynAldenContact

Imagine McDonald's makes its own money, let's call them clown-bucks, keeps most of it, and sells some to the market. McDonald's then uses their remaining clown-bucks as collateral for actual loans. And then people remember clown-bucks aren't real.

Or if you prefer memes like I do:

CZ played his hand to a T this round, with Binance dominance as aim of the game. But collateral damage is now being felt by the entire crypto industry (including near term hits to Binance). Either way, what’s done is done.

Will Clemente @WClementeIII

- CZ starves FTX of revenue with 0% trading fees on Binance attracting volume from FTX - CZ shoots headshot by publicly announcing FTT concerns causing a bank run on FTX and decline in FTT price - FTX unable to cover holes in balance sheet - CZ acquires FTX Thanks for playing.

Name of the game is truly to survive at this point:

Santiago R Santos | #9159 @santiagoroel

your thesis may be right but leverage will likely blow it up. name of the game is surviving to live to see the day your thesis plays out. too much leverage and mismatch of assets/liabilities in a very volatile industry is a recipe for disaster...

Emphasis on non-binding and subject to due diligence:

CZ 🔶 Binance @cz_binance

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

CT crowd doesn’t believe the deal will get done:

Jason Choi @mrjasonchoi

Will the Binance-FTX deal go through?

If CZ doesn’t like the smell of FTX when he pokes around, the industry gonna be in serious trouble. It doesn’t take a genius to image the 2nd and 3rd order consequences. We can look to the LUNA implosion for a taste of what’s to come.

Billions of dollars ride on CZ’s judgement over the coming days and weeks:

Wangarian @0xWangarian

If Binance - FTX bid fails to go through, this will have so many ramifications beyond just financial loss that will set this industry behind at least 24 months. Really hoping for the sake of our industry that the deal passes and customer deposits are protected.

Aspire to be like G:

찌 G 跻 じ 𝙎𝙚𝙣𝙥𝙖𝙞 of the 𝙃𝙚𝙣𝙩𝙖𝙞 @DegenSpartan

i just cant be bothered about most things anymore the only thing i need to nail is the big picture risk on and off and i have a massive margin of error to still be "correct enough" since i have no leverage, no employee payrolls, no investor redemptions, no time frame issa easy

Show up on days when there’s free $$$ on the floor. That’s all there is to the game. Easier said than done:

mgnr @mgnr_io

in discretionary the right position is almost always flat the right action is almost always do nothing 5x / yr there's free money on the floor pick it up then do nothing outperformance

Good luck frens.

Contact me

Twitter: EtherKai @btc21m

Email: kai.btc21m@gmail.com

About Kai

Bought the 2017 top, fell down the crypto rabbit hole in 2020, full-time Magical Internet Money HODLer & user since.

Prior: a decade in TradFi (renewables/investment banking/capital markets).

Thank you

@cobie @Pentosh1 @CryptoHayes @hasufl @Arthur_0x @FedGuy12 @mrjasonchoi @Rewkang @LynAldenContact @RaoulGMI @DegenSpartan @richwgalvin @santiagoroel @nic_carter @EPBResearch @biancoresearch

Disclaimer

This memo is presented for informational and entertainment purposes only and does not constitute financial advice. Individuals have unique circumstances, goals and risk tolerances, so please do your own research before making investment decisions.