SBF seeks to raise liquidity for FTX International; funds to go “straight to users”
FTX CEO Sam Bankman-Fried (SBF) posted a Twitter thread stating that FTX US is 100% liquid and will do everything possible to increase liquidity for FTX International.
SBF first acknowledged his role in the FTX crash and apologized to the community. He then remained silent for the past few days, saying he was “not allowed to say much, especially publicly,” before finally finalizing his decision on whether Binance would buy FTX. I explained the reason.
3) So here’s an update on where things are.
[THIS IS ALL ABOUT FTX INTERNATIONAL, THE NON-US EXCHANGE. FTX US USERS ARE FINE!] [TREAT ALL OF THESE NUMBERS AS ROUGH. THERE ARE APPROXIMATIONS HERE.]—SBF (@SBF_FTX) November 10, 2022
According to SBF, FTX US remains unaffected by recent events and remains in flux.
SBF said FTX International also has a higher asset value than user deposits, but that doesn’t mean the exchange is liquid. He said:
“FTX International currently has a higher asset/collateral market value than customer deposits (moves with price!). Liquidity varies a lot, from very little to very little.”
The exchange’s CEO, SBF, has admitted that he is far from his sense of user margins that have led FTX to its current state.
6) My feeling before:
Leverage: 0x
Instant USD liquidity: 24x withdrawals per day on averageactual:
Leverage: 1.7x
Liquidity: 0.8x Sunday withdrawalBecause, of course, when it rains, it pours. Sunday saw withdrawals of around $5 billion.
—SBF (@SBF_FTX) November 10, 2022
After it came clean, SBF said its priority next week was to “do it right for our users.”
He said the FTX team has been talking to a lot of players and they’ll “see how it goes.” Crypto influencer Cobie released SBF’s Slack message earlier today, telling FTX users He made it clear that he was trying to raise funds to compensate. In support of its claims, SBF now states that every penny of potential income and existing collateral “passes directly to the user.”
SBF concluded his words by saying that if FTX survives, it will be a more transparent platform and that he doesn’t have to be part of it if he doesn’t want to.
17) All stakeholders are taking a hard look at FTX governance. I’m not around if I’m not needed.
All stakeholders (investors, regulators, users) will play a major role in how it operates.
Reliable.
—SBF (@SBF_FTX) November 10, 2022
