Ep. 15 - FTX: The Collapse Heard Around the World
Cracks are showing in the crypto market, making ripples throughout the whole industry. FTX, the formally third largest crypto exchange, went bankrupt overnight, sending shockwaves across the crypto space. In this episode, Alex and I unpack what happened, the lessons we can take away, and what consequences this will cause in the financial world. We also reassess why hard assets like real estate are so valuable and what the FED might do in response to the situation.
Dive in if you want to understand what happened to cause this collapse and why it’s changing the way people invest.
[00:01 - 06:32] Introduction to what caused FTX, a $32 billion company, to collapse overnight
[06:33 - 14:02] The red flags about Sam Bankman-Fried and the FTX platform that we missed
[14:03 - 24:59] How the dominos started falling—the FTX Ponzi Scheme crashes, taking millions of people’s money with it
[25:00 - 37:57] Will cryptocurrency regulation hinders growth, or is it necessary for its long-term survival?
[37:58 - 49:52] Unpacking the ripple effect the collapse caused in the crypto space and its implications on the future of investing
[49:53 - 54:47] How macro situations may affect current markets
Quotes:
"When you have layers of regulation, sometimes stuff just gets buried and missed." - Quinton Harris
“This is the largest financial crime in the history of the United States, by far.” - Quinton Harris
“Cryptocurrency had intoxicated the market to think that they were better investors than they were.” - Quinton Harris
“When I buy a property, or I buy an investment property… it generates cash flow every month. I know the market. It's local. I can go visit it. I can choose who lives in my house… There's a lot of value in choosing to invest in real estate.” - Alex Stewart
Resources Mentioned:
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