I don’t really think FTT is considered a “major coin”—it’s new, and only used by this one exchange. Not sure it has much any use at all outside FTX and would be kinda weird to overinvest in as an outsider other than as a bet on FTX itself.
People affected aren’t just FTT investors but anyone who used the FTX platform. This is I believe $16B? And, to make matters worse, this money was meant to be held 1:1 but looks like it was loaned out to SBFs trading firm (using FTT) in order to trade. They appear to have minted more FTT in order to make up lost funds (possibly in Q2 when other firms went down). This thread explains a pretty plausible version of events:
sure, I was mostly just disagreeing with “90% loss of a major coin”—but I suppose you can read that sentence more charitably. But focusing on the inherent value of FTT as the avenue of affecting customers I think is misguided.
I don’t really think FTT is considered a “major coin”—it’s new, and only used by this one exchange. Not sure it has much any use at all outside FTX and would be kinda weird to overinvest in as an outsider other than as a bet on FTX itself.
People affected aren’t just FTT investors but anyone who used the FTX platform. This is I believe $16B? And, to make matters worse, this money was meant to be held 1:1 but looks like it was loaned out to SBFs trading firm (using FTT) in order to trade. They appear to have minted more FTT in order to make up lost funds (possibly in Q2 when other firms went down). This thread explains a pretty plausible version of events:
https://twitter.com/LucasNuzzi/status/1590122590206824448?t=ZMpzX12eJCqMhXxJgrdLiA
sure, I was mostly just disagreeing with “90% loss of a major coin”—but I suppose you can read that sentence more charitably. But focusing on the inherent value of FTT as the avenue of affecting customers I think is misguided.