Bitcoin and crypto in the storm: Ftx falls into the Binance trap, duel in the shadow of the US vote

Il  Bitcoin try to start again this morning after the bad blow of the weekend which left 16% on the ground which adds to the 60% and more that evaporated from January onwards, in the denial of those who hoped that cryptocurrencies could act as a shield against inflation . But today's rise (+5% to $16,430) is unlikely to mark a turning point in the crisis. On the contrary, there is now talk of a “Lehman moment” for virtual currencies, a wild terrain in which, in the words of Neel Kashkari, governor of the Minneapolis Fed ”mix chaos and Wild West".

 But, pace the Fed, the Ftx meltdown, the platform evaluated a few months ago, on the occasion of the capital raising, at the beauty of 32 billion dollars, is not an obscure episode, detached from the logic of the official markets. But an episode that makes most of Wall Street unsuspected tremble and that connects to the fought wall against wall between Democrats e Republicans. A little thriller that promises to change quite a few balances on the official market. But let's go in order by introducing the protagonists of the challenge.

Crypto in the storm: the protagonists of the duel in the shadow of the US vote

Let's go in order by introducing the protagonists of the challenge.

• The crack victim of FTP platform è Sam Bankman Fried, 30 years old, the cryptocurrency wizard who owns what, until a few days ago, were considered the "blue chips" of the crypto world. Bankman, unlike other players in the sector, does not disdain transparency. And indeed advertising. Bankman, sponsors the Arena where the Miami Heat play and has promoted conferences with Bill Clinton.
• In particular Bankman, whom Fortune magazine has promoted as “the next Warren Buffett, is fighting for a legal recognition of cryptocurrencies starting from the US market. 
• This is also why young Sam, with curly hair in the wind, has become the first lender of the Mid Term election campaign on behalf of President Joe Biden
• The competitor is quite different: Zhao Chanpeng, the Chinese billionaire who owns the competing platform Binance.
• Zhao has always fought against the regulation of the crypto world, to the point of ending up banned in various countries and being forced to set up a US branch subject to various controls. At first the two collaborated. Binance, stronger, has invested in the rival's platform.
• But the deal broke down. Zhao has repeatedly accused his rival of wanting to drive competitors out of the US market thanks to his political ties. But he too has his ties: Binance is among the lenders ofElon Musk's Twitter operation.

The trap of Binance funding Musk against Ftx he funding Biden

Without wanting to conspiracy (but yes), one cannot fail to note that the "trap" against Bankman was triggered in the run-up to the Midterm elections, with the aim of hitting Biden. 

• Last week the news leaked that Alameda Reserach, a company owned by Bankman, owned a significant share of the tokens issued by Ftx, with an evident conflict of interest. 
• After the report is released Zhao sold his share in Ftx, about 600 million dollars, triggering the flight of investors who withdrew 6 billion dollars in a few hours. To deal with the hemorrhage of capital, Bankman has asked his rival for help.
• Zhao, at first, said yes, only to withdraw on Wednesday evening because "the situation is too complex". A stab in the back? Bankman, accredited by Forbes of a assets of 35 billion dollars, guarantees that he will use every last cent to pay off customers.

The crypto challenge mobilizes billions and in the background there is the Musk offensive

It is not a small promise because Ftx investors include the big names in US finance, including itself BlackRock together with Sequoia Capital, Bridgewater. As well as Robinhood, the platform that brings together small speculators, of which Bankman is a major shareholder.

In short, not only are the skirmishes on cryptocurrencies mobilizing billions of dollars on the US market but they promise to change the balance of the market, with a hard lesson for the rebels. And in the background is the offensive by Musk, declared a Republican, against Biden's allies.