Cryptocurrency exchange FTX has caused massive cryptocurrency market drops following the liquidity crisis. However, images and speeches of former CEO SBF are currently on the agenda. In recent months, the former CEO of FTX has unintentionally addressed what is described as crypto staking or basically pyramid schemes.
Analyst, “do not take any action!” had warned
Coincidentally, YouTuber Coffeezilla, who is investigating online scams, found footage of the former FTX CEO. In an interview with Bloomberg finance columnist Matt Levine and Odd Lots on April 27, 2022, he drew attention to the controversial words of former FTX CEO Sam Bankman-Fried. The video contains stunning details. During the interview, SBF tried to explain what a yield farm is.
However, he is reported to have accidentally disclosed a Ponzi scheme that started with “a company that only blocks”. SBF says in his speech:
They’re trying to sound like a life-changing, world-changing protocol that will likely replace all major banks in 38 days. Maybe for now. Ignore what he’s actually doing, or act like he’s literally doing nothing. It’s just a block.
Continuing his speech, Bankman-Fried also conveys the following:
This protocol issues a token. We will call it the ‘X’ token. The ‘X’ token promises that everything great that happens thanks to this block will eventually be usable. Owners of ‘X’ tokens are included in the management game.
Former FTX CEO talked about the schematic in his speech months ago
Looking ahead, the former CEO of FTX is actually talking about the method often used today. SBF continues:
You can create such a block and such a token in five minutes with an internet connection. It should be worth $180 or market value for the effort you put into the production.
As we have reported as Kriptokoin.com; In the world we live in, unfortunately, people are focused on getting quick results. As a result of all this, it is much higher for those who are unfamiliar with the crypto market to be defrauded. Also, almost everyone will say “this token is awesome” according to the former CEO of FTX. As a result, it will appear on Twitter as investments increase. Overall, it is likely to have a market cap of $20 million.
Could FTX be a ponzi from the start?
Coffeezilla draws attention to the parts of the created schema and its details. SBF provides the details of the token created with the following words:
So ‘X’ tokens are distributed every day. All these sophisticated firms say ‘huh, that’s interesting’. If the total amount of cryptocurrencies is $100 million, it will yield $16 million in ‘X’ this year. For tokens, this is a 16 percent return. This is pretty good. We’ll put some more. And maybe that’s until we have $200 million on the block.
Describing the scam that followed, SBF mentions that all of a sudden everyone started saying, “Wow, people decided to put $200 million into the block.” According to SBF, it’s all about how the planning for the token gets attention. In addition, SBF draws attention to the following issues:
What’s going on now, all of a sudden people are recalibrating. It’s like $20 million. The market value of this token and it was around 48 hours. It’s also already $200 million. Domestic investors, on the other hand, continue their transactions.
How long does the ponzi scheme last?
As Matt Levine and Odd Lots continued their interviews with SBF, they realized that what he was talking about was basically a pyramid scheme. However, despite all this, the SBF did not care and took things even further:
And that’s really monetizable. If the world will never coordinately decide that we’re wrong about this, you’re like the kind of guy who says this thing is bullshit by saying it’s actually worthless. But in what sense are you right? It’s stupid and there’s no cash flow actually, if you say ‘I’m going to short sell’, you’ll lose all your money.
Recently Coffezilla has reverted to its old video. He comments, citing the scandal surrounding the crypto exchange and the damage that has spread to the entire crypto market. The cryptocurrency market, on the other hand, has withdrawn its total capitalization to before 2021. Meanwhile, the crisis became known to both “Rich Dad, Poor Dad” author Robert Kiyosaki and podcast host Joe Rogan. SBF has won comparisons with Bernie Madoff, the Wall Street financier who ran the biggest Ponzi scheme in history.
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