Ripple (XRP) CTO Made sense of: What Design Was FTX? How Could It Become This way?
Ripple Labs’ chief technology officer, David Schwartz, co-creator of XRP Ledger and XRP, took to Twitter to somewhat defend FTX founder Sam Bankman-Fried’s reputation as a so-called Ponzi creator.
As reported earlier today, SBF announced that it has filed for bankruptcy of FTX and Alameda Research after it was unable to cover a $9 Billion shortfall in its financial records.
Twitter Controversy Over FTX’s Ponzi Connection
Following this, the Twitter world is agitated by the fact that SBF is in a large-scale ponzi scheme through FTXcom and therefore compares it to the likes of Bernie Madoff. Ripple’s CTO, however, believes that there are ”big obvious differences” between the two, but still admits that FTX is a Ponzi later Decried.
According to Schwartz, Sam Bankman-Fried, then deliberately changing a legitimate business in the hope of starting with a pyramid scheme, but instead nearly $ 65 billion worth of history’s biggest Ponzi scheme Bernie Madoff, who created, unlike a pyramid scheme before they turn into a legitimate crypto currency FTX slowly it started as a job it looks like.
Alameda Research believes that FTX gradually became a ponzi scheme when it began to lose money. Another possibility is that the founder of FTX also wanted the company to increase its profitability.
Also continued to say:
His plan was derailed when Alameda started losing money or wanted Alameda to make more money. He loaded huge and completely inappropriate risks on FTX, at first probably to make it more profitable, and in the end to keep it afloat.
Another important difference between the two Ponzi schemes is that while Sam Bankman-Fried lent money to customers Decently, Madoff made consumers lose money from the very beginning.
SBF’s Net Worth Today
SBF had a net worth of over $16 billion at the time of its peak. But the once-shining star of crypto lost 98% of his fortune in a single day after the collapse of FTX.
In addition, another claim was made for the SBF, and comments about the fact that the net asset fell to $ 3 also shook the Internet.