EddieJayonCrypto
9 Nov 22
• Cathie Wood is a very smart person and she just snatched up another $21M shares in Coinbase• Now is when we will start to see where and how much exposure there is to the collapse of FTX• Circle's building and consolidating reserves, but CEO Jeremy Allaire needs to stay in his lane• A Binance deal ...
• Cathie Wood is a very smart person and she just snatched up another $21M shares in Coinbase• Now is when we will start to see where and how much exposure there is to the collapse of FTX• Circle's building and consolidating reserves, but CEO Jeremy Allaire needs to stay in his lane• A Binance deal to bail out FTX could receive some serious regulatory scrutinyThe fallout begins with the collapse of FTX and the downfall of SBF. Here is what is on my mind today.1. Cathie Wood is a very smart person and she just snatched up another $21M shares in Coinbase. Why is that significant? It is a big deal because people are already yapping incorrectly about what they do not know. I am sure this woman and her team have taken deep dives into Coinbase and know they are more than just solvent. Coinbase has a future. She is not always right, but I like how she thinks. 2. In the coming days and weeks we are going to start hearing about what companies and people have exposure to the FTX collapse. Clearly, Binance has some exposure, but they also have the cash on hand to cover it. Tether has been painstakingly building their reserves as well as changing the kind of reserves. Binance has also built up their emergency insurance fund to the tune of about $1B. The most notable people thus far that have some exposure are Tom Brady and Gisele Bündchen, but I am sure this is only a piece of their respective fortunes. Canada's third largest pension fund has exposure to FTX and I am sure there are more institutional investors 3. Circle has been building reserves and I am confident they have little or no exposure. Which I think is smart. What I think is stupid is Circle CEO, Jeremey Allaire, jumping into the fray talking about how the Cryptoverse needs change. I think now is the time for crypto leaders to keep their conversation to their own respective companies' business and not take this moment to speak out and point fingers. Now is the time to lead by example. Again, people should be taking a more pragmatic approach and e mindful of what they are saying. The market is reeling enough without the FUD. 4. The deal for Binance to bailout FTX could bring regulator scrutiny. I can see why it would, but I can also see why this could be a moment where governments could step back and let it happen. Think about it, there are a lot of ramifications should they step in and cause a deeper crash to the industry.