Elon Musk comments on what happened to FTX and its CEO

Elon Musk comments on what happened to FTX and its CEO

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Answer Elon Musk comments on what happened to FTX and its CEO

The fallout from cryptocurrency exchange FTX has caused turmoil in the blockchain industry.

Industry experts and key analysts have expressed their opinion on what they believe led to the company’s liquidity problems and what they think of CEO Sam Bankman-Fred before and after the company’s crisis.

Bankman allegedly mishandled client funds and is currently facing investigation from US regulators.

Elon Musk, the world’s richest man and CEO of Twitter, shared his opinion on what he thinks about FTX and its CEO.

In a Twitter space hosted by Mario Novell with more than 60,000 listeners, Musk said Bankman reached out to him and expressed interest in collaborating with him to buy Twitter last March.

Read:Crypto asset manager CoinShares announces record ETP volume

He added that he had not heard of Bankman before their half-hour phone conversation.

According to Musk, during his conversation with Bankman, it became clear to him that he was a complete nonsense person.

Musk also asked listeners to be careful when dealing with cryptocurrencies.

Musk gave advice well known in the crypto space:

Not your keys, not your money.

What he means here is that if the users’ funds are in the trading platform, they do not own the keys, and the platform does.

If things go wrong like with FTX, users won’t own the rights to their cryptocurrencies because they don’t own them.

But if your cryptocurrency is in an external wallet, you have the key.

Disruption in the crypto space:

The ongoing problems based around FTX have caused the cryptocurrency market cap to plummet.

The total market capitalization of digital currencies fell below $900 billion for the first time since January 2021 and is now $829 billion.

On the investor side, cryptocurrency users decided not to bear the brunt of the failed cryptocurrency exchanges, and so they withdrew their funds from the cryptocurrency exchanges.

Read:SWIFT Network Tests CBDCs to Facilitate Cross-Border Payments

Billions have been withdrawn from cryptocurrency exchanges since the FTX fallout.

Many traders have taken the initiative to withdraw their funds to the wallet they control to avoid scenarios similar to those recorded in the cases of Voyager Digital and Celsius Network which have gone bankrupt and locked up investors’ funds so far.

Read also:

Kraken Security Director: We know who is behind the $600 million FTX theft

Studying the possibility of suspending FTX’s European operating license

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