FTX bankruptcy and fallout: Monday updates and commentary

Joe DiPasquale, CEO of BitBull Capital, says Bitcoin may fall past US$16,000 as more information surrounding the FTX fallout comes to light:

“The last few days have seen the space shaken by the collapse of SBF’s empire, and expectedly, despite traditional markets showing some strength, BTC and crypto took a hit due to poor sentiment. Even though BTC has settled around $16,000 for now, the extent of the damage to other companies, funds, exchanges is as yet unknown, and may come to the fore in the weeks to come.”

“As before, we believe BTC under $20,000 is an attractive long-term accumulation zone, but we also remain cautious until the current situation is satisfactorily resolved and sentiment appears to start moving toward relative normalcy. Notably, the last few days have seen a significant drop in exchange reserves for BTC and stablecoins, indicating a lack of trust and prevalence of fear in the market. We will be monitoring for signs of returning confidence among the masses as a positive indicator.”

Yung Dot, formerly a senior engineer at FTX, suggested on Monday that Sam Bankman-Fried may have been behind a supposed-hack of the exchange platform on Saturday:

“The entire hack was possible due to the elx trapdoor SBF put in ~ 9 months ago which we can see in public test. Aptly named, this function allowed Sam to use elx to send fraudulent logger messages through the negative flux back to auditors if they ever queried the DB. Adding this was +EV for Sam. It’s a very common function but; he is much more mischievous than we knew.”

Jonathon Miller, Australian managing director, Kraken, says trust will need to be rebuilt for the crypto industry to rebound:

“The FTX situation has been a huge setback for the industry and it is going to take some time for the broader industry and market to recover from this. We are seeing the market impacted by a growing skepticism of exchange issued tokens as an initial response. Sensible industry measures, such as regular Proof of Reserves, will be a vital start to regaining the loss of trust in the ecosystem.”

Source