That is what you call one epic fall from grace. During the Super Bowl in February, there was a much-talked-about television commercial for cryptocurrency company FTX. They were hot. Celebrities were involved; they were supposed to be the future.
Well, they are starting the process now of filing bankruptcy nine months later, and at this rate, they might be able to afford a Hulu subscription to be able to watch the next Super Bowl.
Things went downhill fast for FTX, a company once valued at $32 billion and what many people considered to be the face of the crypto industry.
Their CEO, Sam Bankman-Fried’s reign at the top of the company is over. He’s out, hitting the road in what’s being called a resignation.
Will he take with him the framed covers of Forbes and Fortune he must have had framed in his office? The ones he was featured on?
It’s a humbling fall from grace for the curly-haired boy wonder who couldn’t write checks big or fast enough to Democratic political candidates. Bankman was supposed to be the guy to reshape philanthropy. He did all right; the poor guy could use some charitable donations right now.
According to reports, the crypto exchange experienced what was essentially the same thing as a bank run. Customers were wondering if the exchange could actually come up with the currency on demand to pay people who wanted to withdraw funds.
There’s still that concern, but the new CEO, John J. Ray, went to Twitter and tried to slow the roll of everyone’s fears.
“I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholders that we are going to conduct this effort with diligence, thoroughness and transparency,”
That’s nice and all. But are you liquid? That’s what people really want to know.
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