I don’t see how losing Alamada could have lost the depositor funds, at least if there had been no gambling with depositor funds to that point. I can see, however, how it could crash the FTT token, and that could bring down FTX as a business. But the deposits should have been safe, and the ones not denominated in FTT should have held value. So I don’t think the “nothing to lose” scenario is likely.
Fwiw, I don’t think a crash in the FTT token would’ve crashed FTX as a business (assuming no funny business with extending loans to other parties collateralized in FTT). Afaik FTT was basically a revenue-share token, essentially like common stock.
Just as Meta shares falling 70% didn’t affect their core business of showing users ads, a crash in FTT shouldn’t have affected the core exchange business. It’s just the going rate for rights to future profits.
I don’t see how losing Alamada could have lost the depositor funds, at least if there had been no gambling with depositor funds to that point. I can see, however, how it could crash the FTT token, and that could bring down FTX as a business. But the deposits should have been safe, and the ones not denominated in FTT should have held value. So I don’t think the “nothing to lose” scenario is likely.
Fwiw, I don’t think a crash in the FTT token would’ve crashed FTX as a business (assuming no funny business with extending loans to other parties collateralized in FTT). Afaik FTT was basically a revenue-share token, essentially like common stock.
Just as Meta shares falling 70% didn’t affect their core business of showing users ads, a crash in FTT shouldn’t have affected the core exchange business. It’s just the going rate for rights to future profits.