How the bankruptcy of FTX, the world's third-largest crypto exchange, undermines trust in cryptocurrency and decentralized finance, making it even more difficult for crypto to ever be taken seriously as a monetary alternative.

Topics covered include:

How FTX squandered its customers' deposits
How FTX is another example of a private money bank run
How traditional securities lending works and why it is very low risk compared to the highly speculative nature of cryptocurrency lending platforms
How FTX's demise is impacting numerous entities including Voyager, BlockFi, Bitcoin miners, venture capitalists, and many others
How should individual investors store cryptocurrency, and does it even make sense to continue to own it

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Show Notes

Don't Miss Out on Crypto: Larry David FTX Commercial

The spectacular implosion of crypto’s biggest star, explained by Emily Stewart—Vox

Divisions in Sam Bankman-Fried’s Crypto Empire Blur on His Trading Titan Alameda’s Balance Sheet by Ian Allison—CoinDesk

FTX held less than $1bn in liquid assets against $9bn in liabilities by Antoine Gara, Kadhim Shubber, and Joshua Oliver—Financial Times

FTX balance sheet, revealed by FT Alphaville—Financial Times

FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall by Vicky Ge Huang, Alexander Osipovich, and Patricia Kowsmann—The Wall Street Journal

After FTX: Rebuilding Trust in Crypto’s Founding Mission by Noelle Acheson—CoinDesk

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Episode description

Is Cryptocurrency Dead? Will the FTX Fallout Kill Crypto?

Episode description