<Talking about the industry truths that people don't want to discuss>
FTX once authorized Alameda to have unlimited margin for market making.
During the Luna crash,
the reason why various exchanges had sufficient liquidity for arbitrage
and Luna could drop to 0.0x
was because of FTX's unlimited buying.
But SBF still had a vision and never closed withdrawals.
He managed to withstand the massive losses from altcoins during this wave.
Later, they kept using
a 5% risk-free interest rate to attract deposits
until the winter of 2022,
when the bank run began.
Internal chaos, hacker theft, legal entanglements,
and the first domino slowly fell,
leading to a rapid collapse afterward.
Good night, Makka Pakka!
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