Immediately it was clear that these guys were on another level.
SBF had the smarts & the competitive drive to quickly rise to the top.
CZ didn't build the largest crypto exchange by being lucky, he's an extremely smart person.
That is why he made the strategic decision to have Binance invest in FTX back in 2019.
It was also announced FTX would build institutional product offerings for the Binance ecosystem.
However, as FTX continued to rapidly grow during the last bull market, CZ sensed that they were becoming a threat.
That's why in 2021, Binance chose to divest from FTX during its $900 million funding round.
CZ called it a "normal investment cycle" but we now know it was more
Fast forward to 2022 and FTX is now the #2 exchange behind Binance.
While Binance still does 10x the volume of FTX, the rate of growth for FTX is surely alarming to CZ.
However, there's another reason CZ is worried...
It's no secret that SBF has grand ambitions, and he realizes the only way to maximize FTX's potential is by winning over regulators
That's why he is one of the biggest donors in not just crypto the industry, but in US politics overall
(He was the #2 donor to the Biden campaign)
SBF understands that in order to one day beat Binance, he needs to leverage US politics as a weapon.
And he also knows his angle. CZ was born in China & there are rumors of Chinese involvement with Binance.
As US<>China tensions rise, he has an angle to attack Binance.
However, CZ is not going down without a fight. And he recently got the opening he needed to strike back.
There were 2 events in particular that opened SBF/FTX up to an attack from CZ/Binance:
1. The first was after SBF published proposals on crypto regulation.
These proposals were met with SEVERE backlash from the crypto industry, with many claiming that SBF was trying to kill DeFi & push for regulatory capture.
SBF was suddenly an "enemy of crypto"
2. @CoinDesk published a story which stated that much of the $14.6 billion in assets on the Alameda (FTX's investing arm) balance sheet, was actually its $FTT token that the company prints itself.
This meant that if $FTT price dropped, FTX itself could be at risk.
Regardless of whether or not the financial risks from $FTT were real or not, CZ had the angle he needed to make his attack.
As part of the divestment from FTX back in 2021, Binance had received $2.1 billion worth of $FTT & $BUSD.
Then CZ went on the offensive...
It first started with a tweet by CZ this weekend, where he highlighted the fact that Binance held large amounts of $FTT and would be liquidating all of it.
This was an effective attack on FTX for 2 main reasons:
The strategic brilliance behind CZ's attack was that he realized the current state of the industry.
After months of large firms (that were previously considered safe) becoming insolvent, crypto participants are mentally rattled.
Nobody wants to take any chances.
As @lawmaster pointed out in a tweet, the logical move for prudent crypto investors is to withdraw funds from FTX, even if there's an extremely low chance of FTX insolvency:
The conflict reached a tipping point with CZ announcing that Binance planned to liquidate $2.1 billion worth of $FTT & $BUSD that they received as part of their divestment from FTX in 2021.
CZ claims this is "due to recent revelations that came to light"
-I've worked at big tech social media (@LinkedIn)
-I've worked for Web3 social media (@desoprotocol)
-I'm an active content creator (50K+ newsletter subs, best-selling author)
Here are some thoughts I have for how @elonmusk & team can improve Twitter 🧵
1) Shore up financial foundations:
While it was painful, I do think management needed to cut costs, which the layoffs will accomplish.
On the revenue generating front, I agree that leaning into Twitter Blue makes sense, but it needs some updates...
2) Update Twitter subscription tiers:
LinkedIn has subscription products ranging from $29.99 per month for Premium to thousands of $ per month for products like recruiter.
Twitter needs to better define it's audiences and build separate SKUs for each one. For example...
One of the dirty secrets of @ethereum is that Layer-2s solve all its usability problems because they're cheap & fast.
However, in my experience, I've found that they still contain onboarding friction that will keep 99% of normies from using them 🧵
Let's start with awareness:
Most people aren't even aware that layer-2s exist. While @0xPolygon, @optimismFND, @arbitrum have made huge strides, the average crypto holder does not know they exist.
Even if they do become aware of them, that's when the friction begins...
For starters, users need to bridge funds from Ethereum mainnet to a layer-2.
This requires users to even know about the concept of 'bridging' in the first place & then find the correct bridge.
A simple google search may land them in the right place, but it's not alway obvious
Today I want to talk about why @cosmos ⚛️ calls itself the "internet of blockchains"
Once you read this thread you will understand why Cosmos has flown under so many peoples' radars & remains underrated🧵
When most people think of a blockchain, they view it from the perspective of a single blockchain network.
Even @ethereum, which has seen a rise in adoption of its layer-2 chains, is still MUCH more widely recognized than any of the chains built on top of it.
This is what makes the Cosmos ecosystem difficult to grok for many in the space:
Rather than basing itself around a single layer-1 blockchain, its a network that actually consists of MANY blockchains.