FTX was in talks two months ago to raise 1Billion equity at 32Billion valuation. Binance threatens to sell its holdings of FTX tokens and it all crumbles? How isn’t this a big Ponzi scheme?
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Well, there’s no lender of last resort for nongovernmental/unregulated currencies. The intrinsic values is what the next person is willing to pay. When people lose confidence high volatility things crash fast.
Oh wait, you said ELI5. Yeah, it’s a Ponzi scheme.
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