The huge changes in the cryptocurrency exchange market on November 8 led to equally massive waves of comments. The UpOnlyTV channel on Twitch benefited from this activity with the simultaneous appearance of Do Kwon and Martin Shkreli to discuss the deal between Binance CEO Changpeng Zhao (CZ) and FTX CEO Sam Bankman-Fried (SBF) for the purchase of FTX.
Shkreli, who is sometimes known as “Pharma Bro” for his role in that industry prior to his conviction for securities fraud, I was doubtful that the Binance-FTX deal would work. “I think the hole [el déficit del balance de FTX] it’s much bigger than people think and I think there’s a good chance that Binance will go away, and I think that would be terrible,” Shkreli said.
Kwon, whose Terra Labs issued the TerraUSD (UST) stablecoin, now known as TerraUSD Classic (USTC), which crashed catastrophically in May, was more confident in the deal, saying:
“I’m assuming the sale price is at a reasonable discount from what the private funding round was, but if CZ steps in and makes users whole, there’s no reason for him to [SBF] be in significant distress. It will probably go on to something else.”
But when asked if he would invest in an SBF startup, Kwon was reluctant. “I’m not a big investor”, said. “I think it’s too early to tell.”
On the role of his “fanfare and his person” in the collapse of Terra/Luna, Kwon said, “I don’t think what happened with UST would have been different if the way I conducted myself on Twitter was different. Actually, how I am in real life and how I am on Twitter is quite different. […] There is value in being entertaining and funny.”
“Well, on this year’s villain list, Do is moving further down,” racknowledged Wintermute CEO Evgeny Gaevoy, another guest on the show. “Not so bad anymore, I guess, compared to Alameda and 3AC […] He was a little cocky, but it doesn’t matter.”
Another guest called “a sociopath, to be frank”, and added, “I’m not a big fan.”
Commentators on the live stream were no more forgiving. “DO KWON HAS TO PAY FOR MY LOSSES” wrote one. “SCAM-KWON TO JAIL,” wrote another.
Kwon did not respond to the speakers, but later said: “I think what’s been really helpful is the support from people that we’ve worked with over the years. I think the bad publicity has made it really hard for them to speak up, in defense of what happened with UST, but I would like to think that, for the people we have worked with for a long time, we have had the opportunity to show our character and our good intentions”.
Shkreli regarded the current situation as a low point, saying:
“If the whole banking system got drunk or high or something, that’s how it would work, right? You have real adults in the room in real banking and maybe it’s because of regulators and maybe it’s not.”
Shkreli added, taking a dig at Binance by repeating an unfounded rumour: “The biggest problem is that we don’t know what the balance of Binance is. Why do we trust these guys? […] It’s an addendum to CCP.”
– FTX secretly insolvent
– BTC testing new lows
-Alameda toast
– Binance planning to acquire FTX
– FTT down 80% headed to 0
– CZ announces proof of reserves
– Su Zhu re-emerges
– Do Kwon and Martin Shkreli on UpOnly
-Coinbase temporarily downHow was your day at the office?
— Yassine Elmandjra (@yassineARK) November 8, 2022
– FTX secretly insolvent
– BTC tests new lows
– Toast in Alameda
– Binance plans to acquire FTX
– FTT drops 80% and heads to 0
– CZ announces a test of reservations
– Su Zhu reappears
– Do Kwon and Martin Shkreli on UpOnly
– Coinbase goes down temporarilyHow was your day at the office?
However, Shkreli was sympathetic to Kwon and said:
“I just want you to know that jail isn’t that bad, it’s not the worst thing ever, so don’t worry. I hope it doesn’t happen. But if it does, it’s not that bad.”
“Good to Know”, Kwon responded, though he started their conversation on the podcast by saying “I don’t think he’s running away.” He did not reveal his whereabouts.
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