An ex-FTX executive offers a 'cool token' idea amid warnings of a long-term rebound

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Written by

Edna Buckley
Published on

November 11, 2022

Key points: 

  • Filbfilb, a co-founder of the trading suite Decentrader, is connecting the LUNA crash to FTX bankruptcy. 
  • He asserts that in order not to repeat the cycle, a "multi-year" reorganization may be required.
  • Zane Tackett, the FTX former head of international sales, confirmed total liabilities at -$8.8 billion.
  • He suggests creating a "cool token" to restructure debt, rather than filing for bankruptcy the traditional way, in what he called a "baby boomer lawsuit."

Bitcoin and cryptocurrencies could “take years to recover from the FTX scandal,” an industry analyst warned.

In a Nov. 11 Twitter post, Filbfilb, co-founder of trading suite Decentrader, said the Terra LUNA debacle itself was continuing.

Filbfilb: 'I've never had a crash like this'

Filbfilb concluded that the crypto industry is seeing “a clear case of what goes up must come down.”

With the impact of FTX and Alameda Research just beginning to show, many industrial companies and related tokens have been reduced to the shadows of yesteryear.

The industry's reputational outlook looks bleak given the bankruptcy concerns of businesses exposed to FTX and investigations by regulators.

For Filbfilb, FTX-Alameda itself was the product of the implosion of Terra, Three Arrows Capital, and others earlier this year.

He highlights two other main reasons:

1) Most of this has to do with the collapse of the top 3 AC/Celius,
2) Businesses in the space compounded their aspirations based on supernormal, parabolic industry growth.
3) Cash is king; cash flows of many entities are down to the tune of 80%.

The situation is all too familiar; overeager companies are creating a steroid ecosystem that is growing too fast and too risky.

“Prices, users, cash flows, and compound cross-collateralization companies use rapidly declining assets as balance sheet assets with future obligations that work when prices rise — and when the tide goes out, it’s suicide,” Filbfilb continued.

In order not to repeat the cycle, a "multi-year" reorganization may be required.

"So yeah, I'm upset about the whole thing, I've never seen a breakdown like this, I understand why we're where we are now, but it's unforgivable for some of the people involved and they need to take responsibility," he concludes.

Former FTX sales executive avoids bankruptcy 'baby boom lawsuit'

Investors and companies with countless funds frozen in FTX accounts are nervous.

On Nov. 11, Zane Tackett, the exchange's former head of international sales, confirmed total liabilities at -$8.8 billion.

In his own Twitter post, he asked users if FTX should create a "cool token" to restructure debt, rather than filing for bankruptcy the traditional way, in what he called a "baby boomer lawsuit."

"You can't paint a pretty picture from these numbers, but when I look at the balance sheet tonight, I think it's going to be worse," he revealed.

“Now, granted, there's a massive hole in liquid assets, there is a pretty big chunk of change in the ventures portfolio.”

Less than an hour after it was published, the survey received 3,100 responses, 71% of which requested the creation of a token.

Twitter survey (screenshot). Source: Zane Tackett/ Twitter

Twitter survey (screenshot). Source: Zane Tackett/ Twitter

Such a move is similar to that of the Bitfinex exchange, which released its UNUS SED LEO token after it was hacked for $70 million in BTC in 2016.


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