(As an outsider, setting FTX+Alameda=$2 seems crazy low? But asset breakdown here seems useful)
[SBF] looked poised to leverage his fortune — $26 billion at its peak — to shape the world, donating millions to Democrats and promising that one day he’d give it all away to political causes and charity.
Bankman-Fried’s 53% stake in FTX was worth about $6.2 billion before Tuesday’s takeover, according to the Bloomberg Billionaires Index, based on that fundraising round and the subsequent performance of publicly traded crypto companies.
FTX wasn’t Bankman-Fried’s most valuable asset, though. That was his crypto trading house, Alameda Research, which contributed $7.4 billion to his personal fortune.
The Bloomberg wealth index assumes existing FTX investors, including Bankman-Fried, will be completely wiped out by Binance’s bailout, and that the root of the exchange’s problems stemmed from Alameda. As a result, both FTX and Alameda are given a $1 value.
That leaves SBF’s net worth at about $1 billion, down from $15.6 billion heading into Tuesday. The 94% loss is the biggest one-day collapse ever among billionaires tracked by Bloomberg.
Crypto news site CoinDesk reported on Friday that a token issued by FTX, FTT, made up about a quarter of Alameda’s $14.6 billion in assets. Another item, labeled “FTT collateral,” accounted for $2.16 billion.
Hypothetically, let’s just say I own a business, Andromeda Research, with $500 million of assets and about 8 billion of outstanding liabilities? How much would you pay to acquire this concern? Perhaps $1 might seem quite a lot, in context?
Another Bloomberg article to add context [original; non-paywalled].
(As an outsider, setting FTX+Alameda=$2 seems crazy low? But asset breakdown here seems useful)
Hypothetically, let’s just say I own a business, Andromeda Research, with $500 million of assets and about 8 billion of outstanding liabilities? How much would you pay to acquire this concern? Perhaps $1 might seem quite a lot, in context?
I am confused by the claim that FTX’s collapse ⇒ Alameda = fuck all, I thought it had about $10B in non FTT assets. But thanks for sharing!
The original rumour was that Alameda would have net negative assets if FTT coin collapsed. Though there’s a chance it’s actually OK.