Forbes Interview with SBF: Some exchanges have quietly become insolvent

Forbes interviewed SBF, the founder of the FTX exchange, and issued warnings about the operational conditions of some exchanges. The article mainly summarizes the recent institutional and exchange crises caused by the bear market, as well as FTX's strategy during the market downturn. The key points are as follows:

Forbes interviewed the founder of the FTX exchange, SBF, and issued warnings about the operational status of some exchanges. The article mainly summarizes the recent institutional and exchange crises caused by the bear market, as well as FTX's positioning in the market downturn. The key points are as follows:

• 3AC, a venture capital firm, faced insolvency due to the collapse of LUNA and high leverage debt, leading to defaults on loans to companies including Voyager Digital in New Jersey and BlockFi in New York; both companies sought help from SBF. In the end, FTX and the quantitative trading company Alameda provided a total of $750 million in credit lines for them. SBF stated that he was willing to make some unfavorable trades at this time to stabilize the situation.
• SBF told Forbes that some third-tier exchanges are quietly insolvent. Forbes listed many small exchanges offering high-margin trading and pointed out their regulatory and hacking issues. SBF believes that some exchanges have gone too far, and it is unrealistic to continue supporting them.
• SBF believes that Voyager and BlockFi, which promised depositors up to 12% annual returns, must charge higher interest to borrowers or mostly utilize them in DeFi; however, this has proven disastrous in the bear market.
• Sources revealed that Alameda may lose at least $70 million in loans provided to Voyager Digital. The company had a market value of over $3 billion in 2021 but is currently valued at less than $100 million.
• SBF stated that despite the severe bear market, FTX remains profitable. Meanwhile, Coinbase reported a $432 million loss in the first quarter, and its stock price has dropped 90% from its all-time high.
• SBF also noted that mining companies that expanded their scale saw their stocks drop by over 60% in this bear market.
• SBF is not worried about Tether; during the LUNA incident, it successfully handled large-scale redemptions. He believes that being bearish on Tether is incorrect and unsupported by evidence.