- Youtuber Coffeezilla breakdown the reasons for the collapse of the FTX exchange.
- Zhao selling tokens in the free market was intended to plummet FTT prices, says the Youtuber.
- Bankman-Fried let himself be bought over by his hater because FTX was badly broke, states Coffeezilla
Youtuber Coffeezilla, an internet detective, involved in exposing scams, broke down the reasons for the collapse of FTX in his video titled “FTX Collapsed…Here’s Why.” In the clip, he explains how Binance’s CEO manipulated the prices of the FTT and bought over FTX for pennies. Moreover, Coffeezilla warns the community not to believe any CEO’s shilling.
Coffeezilla introduces Changpeng Zhao, the CEO of Binance, the largest crypto exchange, and Sam Bankman-Fried, CEO of the second largest exchange, as haters of each other. Based on this derivation, he builds his arguments as to why and how FTX collapsed.
Recently, Zhao announced that he would liquidate all the FTT tokens into the open market after the revelation of the FTX balance sheet. This act of Zhao brought the prices of FTT tokens down drastically.
When Zhao was questioned whether he intentionally made this move to make the prices of the FTT tokens drop, he said that he made this move to merely maintain the transparency of his company.
However, despite Alameda’s research stepping up to buy all FTT tokens from Binance at $22, Zhao responded by stating, “we will stay in the free market.”
Coffeezilla says that this act of Zhao was fully intended to squash the price of FTT.
Later on, Zhao announced that they were going to fully acquire FTX since FTX resorted to Binance’s help. As such, Binance signed a non-binding letter of intent (LOI) intending to fully acquire FTX.com. Coffeezilla states this move of Zhao, where he dumped the prices of FTT and bought over FTX for virtually pennies, will go down as a business genius.
Coffeezilla revealed that Bankman-Fried letting himself get bought over by his hater, points to how badly FTX was short on cash.
Moreover, the YouTuber raised questions about how the company could have been short of billions. And in addition, he raised an alarm as to how they were safeguarding customers’ funds. Finally, he educates the crypto community to not believe what the CEOs are saying, as they could be lying.
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