Ponzi and other financial schemes are nothing new. They’ve been happening in all financial markets since the beginning.
The crypto bubble appears to have been mostly fueled by the original arbitrage opportunity with GBTC / GETH via DCG / Grayscale / Genesis / Three Arrows Capital / Gemini / Blockfi etc.
Alameda / FTX would have just been another casualty of bad risk management and poor decisions had SBF not chosen to violate his duty to his customers and steal their money. Now there is no excuse for him to not go to prison. If authorities fail to hold him accountable, it will be another black eye on our politicians and a shining example of their bought and paid for loyalties and unlimited corruption.
None of this meltdown is indicative of the true value of crypto. The main issue with crypto now is that it is still in its infancy stage and not quite ready for wide public adoption.
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