tl;dr
• FTX, CEO, Sam Bankman-Fried, thinks there are a number of crypto firms that will fail and some that are already insolvent• Crypto exchange CoinFlex says Roger Ver, of Bitcoin Cash fame, owes them $47M• Babel Finance is about to lose some key employees; some say they have already• The Compass Minin...
• FTX, CEO, Sam Bankman-Fried, thinks there are a number of crypto firms that will fail and some that are already insolvent
• Crypto exchange CoinFlex says Roger Ver, of Bitcoin Cash fame, owes them $47M
• Babel Finance is about to lose some key employees; some say they have already
• The Compass Mining debacle continues as the CEO and CFO step down effective immediately
Welcome to sideways life. I still think there is a sale coming. I am just wondering how much of a sale is on its way. Here is what is on my mind today.
1. I have been saying it for a while now. The current cryptosphere reminds me of the old dotcom days. You had to sift through all of the hopes and dreams to get to the reality of what projects were going to work and what weren't. Well, FTX, CEO, Sam Bankman-Fried, thinks there are going to a number of crypto firms that will fail. He has been providing lifelines to certain firms, Like BlockFi, after weighing whether or not they can survive. He also believes there are already firms that may be masking their insolvency.
2. Crypto exchange CoinFlex says Roger Ver, of Bitcoin Cash fame, owes them $47M. Roger Ver denies the claims, but CoinFlex is in a bad way. I would think they are not going to pull punches. This is a crazy story. Mr. Ver is a shareholder of CoinFlex. It is also widely thought that he is a billionaire. Then again, why would a billionaire need to leverage $47M in a transaction with a company of which he is a shareholder? You ask me why I am not a fan of CEXs. Well, this is why. A couple of days ago I reported Goldman Sachs downgraded the largest crypto exchange in the United States, Coinbase, to a sell. Centralized exchanges large and small are having issues.
3. Babel Finance is about to lose some key employees. The Head of Global Partnerships has deleted their LinkedIn profile. Other reports say other have already exited. It is going to be interesting to see what happens when a gravy train comes to such a screeching halt. The DeFi lender has already stopped client withdrawals.
4. I am sure that during your research you came across the Compass Mining debacle. You know. The one where they missed paying bills. Well, they announced its CEO and CFO are both gone effective immediately. Their CTO and CMO will take over running the company in the interim. Can you say hot mess? They are said to owe over $500M in energy bills. Just so you know, Compass Mining provides hosting infrastructure for various crypto miners. Imagine hosting with them and learning of this after taking the beating in the current economy.