All right, let's get back to the cryptocurrency story really grabbing global headlines. It's Binances. It backed out of its takeover of FTX dot com Big Big Blue. For investors that were hoping that Binance would support ft x's customers to give them liquidity. Let's get over to Douglas both Week, chief business office at I n X Limited. Douglas so give us a sense of what happened here and whether we should be concerned about this being the canary in
the coal mine. Well, I think that we all knew this was can happen um a couple of days ago when cz over A Binance tweeted that he was looking into f t X, didn't like what he saw and he was going to start selling aggressively their token. I think it was five million dollars of it, so it certainly telegraphed as he did that. Obviously there was a run. That run on the bank essentially meant that f t X I think it was six billion dollars of outflows
and it seems that they couldn't cover it. Um. Then they signed a non binding l o I, and I think we all agree that a non by lloy means very very little today cz command said, you know what, we're not going to buy it after all, and you saw continued contagion in the market. So obviously bitcoins taking a bit of a hit, a lot of all coins are taking a hit. It's it's a bit of a mess. I think the media right now is concentrating on the people that invested in the equity rounds at f t
X and how much they're going to get hurt. But you have to remember there's a lot of investors that have their money now locked in at f t X, and who knows when that money is gonna be allowed to come out again. I mean, there's a bit of stink on this isn't there from the way that c z JAW handled this and the way that it unveiled or rolled out. From a regulations standpoint, well, I think, well, on a regulatory stand standpoint, neither of these companies seemed
regulated inside the United States. None of them are public companies, neither of them are audited in the United States and so and neither of them way I believe can have US investors invest in them, um and so that that's
one point. But you know, I think that one of the big stinks that's coming out is that it seems that f t X was using their own token and perhaps buying that with customer funds that were deposited on the exchange, pumping up the price of it, and then using that pumped up price to then go out there and purchase other companies. UM. And that sort of thing I think people look at and think that's that doesn't work.
That's very off, very odd. But do you know, asking you whether this was the current canary in the comn I was referring to f t X, do you think the many others like this out there and what does it tell you about the crypto space? But I certainly think that there's a lot of palaces that are built on sand, and I think that we need to remember that and a lot of guys that kind of rushed
out to the Facebook model and break it then fix it. Um. They did that with a m l K y C. They've done it obviously with the way that they've not really had auditors in making sure that they do things that they say they're doing. UM. I think that a lot of folks are now looking at other these exchange tokens and how are they you Easton. How are they manipulated by other companies that have exchanged tokens. My company
has an exchange token, but it's a registered security. It's the only fully registered security public security that exists for an exchange, and so we're audited. Um, We've got rules that we have to follow as a company, and none of these other companies seem to have these rules. It's very hard to know, you know, the the finances. Uh and um, you know, we don't know obviously, you know, you don't know when someone's cheating. But it's very worse.
And because sam Banquan Freed and FTX had been almost a savior of sorts for a number of other exchanges and another other a number of other companies, you know, sort of backstopping them. If you'd asked me a week ago, you know whether or not this company was very likely to to fall into this kind of trap, I just said, oh,
it's probably one of the least likely. Well. I think that this is an interesting thing here, and that there's been a lot of distressed assets, both on the minor site and exchanges in the market, and I think that Binance and f t X have both been bidding for them and there's been a bit of a back and forth between the two and CZ certainly that's the head of Binance certainly went out there and said, look, I don't like how we're being dragged through the mud in
terms of the regulators, and I think that that sort of personal TIFFs sort of set off everything else, and that he decided he was going to kind of pull up the curtain on on what was going on at f t X and obviously has created this. But you know, it's an absolute mess. Canarian the coal mine is correct. But you know, this is the third time we've seen this. We saw Celsius go down doing similar type things, we saw Voyager go down similar type things, and now we see f t X going down, and you know, I
think people are wondering who's going to be next. Well, this is it, isn't it. I Mean the thing is crypto clients who have kind of shunned the industry from being regulated may well start demanding, as you put it in your notes, regulation with regards certain where does that leave things? You know, Mike Mike Tyson always said that everyone's a champion until they get punched in the face.
And I think that everyone wants to be bankless until the company they're dealing with goes bankrupt, and then they're wondering why the regulators aren't stepping in, where's my f D I C insurance, where's the regulators, where's the backstop from the Fed? And then the reality is I think that we're going to see more regulation and more safeties, certainly for US investors. It's been tough for for coin
Base and and robin Hood. Uh, you know, slightly different businesses obviously, but those stocks are down in just two days of trading. Um, we'll have to leave it there, Douglas, Thank you. Douglas Boorthwick, Chief business Officer at I n X Limited,