In summary, the drama unfolded over the past few days between CZ, the founder of Binance @cz_binance, and Sam, the founder of FTX.
@SBF_FTX
Sam recently appeared prominently in news headlines as a billionaire in a short time before turning thirty, and as the second-largest donor to the Democratic Party.
It is important to know that Sam was a trader and owned @AlamedaResearch, a firm for trading cryptocurrencies.
Sam has often confirmed that the trading firm has no relation to the exchange... rather, he appeared to be the most compliant face with the laws... meanwhile, CZ and Binance are still pursued by money laundering charges.
Sam issued the $FTT token to settle transactions within the exchange and grant traders some advantages. Binance holds $500 million of this currency.
At the beginning of the week, a rumor spread that a third of Sam's trading firm's assets, amounting to $5 billion, were in the same currency. Sam issued the $FTT token to settle transactions within the exchange and grant traders some advantages. Binance holds $500 million of this currency.
At the beginning of the week, a rumor spread that a third of Sam's trading firm's assets, amounting to $5 billion, were in the same currency, which he borrowed from the exchange and allowed to be used for borrowing!
The news caused panic, firstly due to the overlap between Sam's exchange and trading firm contrary to what is announced, and secondly due to the risk of both companies failing to meet traders' funds because they used their own currency as collateral.
With this leak, CZ decided to launch his attack in a tweet announcing that Binance would sell all of its FTT holdings.
Panic escalated in hours, causing $6 billion to flee from FTX, and Sam lost $16 billion, falling out of the billionaire list, while the cryptocurrency market lost more than 10%.
Sam tried to find emergency funding but to no avail, finally accepting CZ's offer to buy his company, which he previously considered hostile.
The event is still in its infancy, and things are developing moment by moment, but the impact could become catastrophic.
There is no doubt that the accumulation of these services in the hands of a few individuals has allowed for manipulation and personal interests to consume people's money.
Decentralized exchange technology, enabling machines to hold funds without human intervention, is the next logical step.
