I don’t think it’s quite a mystery as you think… if you do the same overleveraged high stakes bet and you come out winning ten out of ten times, it’s likely you will continue doing it (this is the nature of a ponzi scheme.) I think they could have easily find investors if they could have sustained the bank run and prevent the balance sheet leak.
The latter, I think, is the real mystery.
SBF probably knew at all times the dollar value size of a bank-run he could sustain until having to forcedly lock withdrawals, plus which whales could dump FTT at any given time (one of this being the CEO of Binance.)
While most people are thinking that Binance’s CEO Changpeng Zhao made a huge move dumping all of FTT, I think it’s terrible for him—it highlights the fragility of the entire enterprise and shifts all eyes on the remaining centralized exchanges (I imagine SBF’s line of thinking going something like this, he didn’t think that Zhao would martyr himself, but he did and thus we’re here)
I don’t think it’s quite a mystery as you think… if you do the same overleveraged high stakes bet and you come out winning ten out of ten times, it’s likely you will continue doing it (this is the nature of a ponzi scheme.) I think they could have easily find investors if they could have sustained the bank run and prevent the balance sheet leak.
The latter, I think, is the real mystery.
SBF probably knew at all times the dollar value size of a bank-run he could sustain until having to forcedly lock withdrawals, plus which whales could dump FTT at any given time (one of this being the CEO of Binance.)
While most people are thinking that Binance’s CEO Changpeng Zhao made a huge move dumping all of FTT, I think it’s terrible for him—it highlights the fragility of the entire enterprise and shifts all eyes on the remaining centralized exchanges (I imagine SBF’s line of thinking going something like this, he didn’t think that Zhao would martyr himself, but he did and thus we’re here)