Former senior executives of FTX exposed the current asset-liability situation and initiated an investigation: Should we learn from Bitfinex and issue debt tokens?
Former FTX institutional sales head Zane Tackett, who has already resigned after explaining the reasons for the withdrawal from the Bahamas early this morning, has exposed FTX's possible asset-liability situation.
Zane Tackett stated that he has nothing more to say at the moment, but is interested in hearing others' thoughts. There are now two options:
- A Declare bankruptcy
- B Issue tokens
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Gap in Liquidity Assets Reaches $7.9 Billion
He first described the possible asset-liability situation for FTX.
- Debts: $8.8 billion liabilities
- Liquidity Assets: $0.9 billion e.g. USD/JPY/DAI
- Low Liquidity Assets: $2.037 billion e.g. GBTC/ETHE/SOL
- Illiquid Assets: $3.2 billion e.g. long-term equity investments
Therefore, the gap in liquidity assets is $7.9 billion liabilities, and the gap in illiquid assets is $2.66 billion liabilities.
1/I obviously have 0 say at this point, but hey, interested to hear others' thoughts:
Two options:
A) bankruptcy
B) token[THESE ARE NOT CONCRETE NUMBERS]
Liabilities: -8.8bnLiquid assets: 900m
Less liquid: 2.037bn
Illiquid: 3.2bnliquid hole: -7.9bn
illiquid hole: -2.66bn— Zane Tackett (@tackettzane) November 11, 2022
Hoping to Seek Bitfinex's Debt-for-Equity Swap Model?
He stated that it's difficult to sugarcoat this massive gap with words, but he originally thought it would be worse. He recalled the painful and lengthy legal process following the bankruptcy of Mt. Gox.
He said that if there was a token that could provide immediate liquidity to your current assets, it would definitely be better than option A bankruptcy.
Having a token also has its benefits, he mentioned the case of BFX token conversion to stocks, paying >$2 dividends + getting corresponding Bitfinex equity value for every $1 loss. Note: He referred to the BFX tokens given to creditors after the 2016 hack of the exchange Bitfinex, convertible into equity.
He also conducted a survey, with seventy percent of nearly five thousand votes indicating willingness to choose debt tokens:
i'll make it an official poll, cool token vs boomer procedures.
— Zane Tackett (@tackettzane) November 11, 2022