Kraken CEO On The Impact of FTX Collapse Listing 9 Red Flags
Jesse Powell, the executive director of cryptocurrency exchange Kraken, wrote a lengthy tweet on November 10 explaining the impact of FTX’s failure on the crypto industry.
Destroying the crypto progress that has built over a decade
Earlier in his tweet, he said that people in this industry are smart, passionate, open-minded, welcoming, and have genuine humanitarian concerns.
“I know we’re going to get past this. True believers will not be deterred. But, this is a massive setback. I’m really trying to control my rage,” he said.
He pointed out that as a result of crypto users’ good, trusting nature, con artists are able to lure them easily. Some even let them know straight up that “they’re here for profits, not crypto, and praise them for their honesty.”
“Yet we’re surprised when they turn out to be who they said they are. We need to raise our standards,” he added.
As he put it, it’s not about aiming high and missing, but about recklessness, greed, self-interest, hubris, sociopathic behavior that results in the risking of all the hard-won progress this industry has accumulated over a decade, “for their own personal gain. While already being rich AF.”
The damage caused by FTX’s Failure
Kraken CEO, Jesse Powell, also shared his opinions on how the FTX’s collapse damaged crypto markets. A Chapter 11 bankruptcy filing was filed by FTX on Friday.
He stated that this exchange implosion is a gift to the haters of #bitcoin around the world, because the damage here is enormous.
This is the excuse that they had been holding out for in order to justify whatever attack they had planned. “We’re going to be working to undo this for years.”
He also explained that “The last few months have been absolutely brutal. Even people who should have known better got rekt. More business failures are sure to come as the contagion spreads. Beyond the industry, lives are destroyed. I pray that we don’t lose our people, like we did in the wake of Gox.”
In February 2014, Gox filed for bankruptcy after 850,000 Bitcoins were stolen in a hack that resulted in the exchange losing its status as an exchange.
A number of red flags have been raised regarding FTX by Powell, referring to former FTX CEO Sam Bankman-Fried, who resigned after the bankruptcy filing. Powell explained that the first red flag is “acting like you already know everything after being eight years late.”
“ *9 figs buying political favor * being overeager to please DC * huge ego purchases, like 9-fig sports deals * being a “media darling”, seeking out puff pieces * EA virtue signaling * FTT,” he added.
Powell ended the tweet series by praying for everyone who got caught up in this mess and hoping that it doesn’t turn people off of crypto and that they continue to be part of it.
“These are growing pains. Money can be made again. Stay with me. I remain your humble servant, Jesse.”