Let's start again | Golden Motor Fund Announcement No.59

In February of this year, Sam Bankman-Fried (SBF), the founder of the American virtual currency exchange FTX, announced on Twitter that as long as they are from Ukraine, each user will receive 25 USD. At that time, countless people discussed the speed advantage of the Web3 world: if you want to provide support through traditional banks, you have to wait until Monday; and Ukrainians in an exceptional state may lose their life supplies at any time. But just last week, the world's top three FTX experienced thunderstorms, was acquired, abandoned the acquisition, and finally declared bankruptcy in just ten days. Many users/companies failed to see the news in time, or There is no time to rethink the trust in the exchange and suffer overnight. The Web3 world has cruelly proved its double-edged "speed" from another angle.

This incident has a wide range and many victims, but as @Jeffrey said , "Now that FTX is bankrupt, the only thing left to think about is how it all happened, what can be salvaged, and this incident The scope of influence." This issue of Jinmada will start with the popularization of the incident and share the user's insights. After we review the market together, we will start again.

Event science popularization and review

FTX Collapse: Broken Bridges, Decentralized Watershed—— By @许明恩

Reports about FTX on the Internet are like crucian carp, but most media and commentators are like "one-day fans" in the currency circle. Not only is the quality of the reports uneven, but the description of cryptocurrencies is not very friendly, and there are also sour people who will add insult to injury in the message area. Seeing these reports always makes people feel a little uncomfortable. After all, although the victims of the incident include those "young currency gods" who were once invincible, but more of them are ordinary people who want to try cryptocurrency with the lowest risk, and these people may be your friends, colleagues or neighbors^ this article It is to discuss why the FTX collapse has a particularly serious impact on the market from an insider's perspective, and how the incident will affect future market development. "

Xu Mingen described that FTX is a "cross-chain bridge" that connects legal tender and cryptocurrency. The low threshold, cheap handling fees and abundant deposit and withdrawal channels have become the basis of high-frequency use and trust for everyone, and the victims affected by this wave Very much. But "the crisis is also a turning point", making the operation of the exchange more transparent is one of the roads to rebuild trust; and the "most extreme transparency" is that users keep their own funds. And all of this is still being explored, and new technologies and safer methods are still being iterated. "The collapse of FTX may cause panic in the short term and even make people withdraw from the currency circle, but in the long run it may be a sign of people shifting from centralization to An important watershed moment for decentralization."

FTX Event Replay - Block D Weekly Report—— By @D大叔

According to the Digital Times report: “It is worth noting that FTX applied for Chapter 11 of the US Bankruptcy Code instead of Chapter 7. The main difference between the two is that the latter is direct bankruptcy, while the former is applying for bankruptcy reorganization. Bankruptcy reorganization means The most important thing is that the enterprise has the right to propose financing and restructuring plans within 120 days after filing for bankruptcy protection, so that the enterprise has the opportunity to continue to operate, or to find a company that is interested in taking over its business or assets, so as to avoid creditors directly suing the enterprise. Liquidation."

Use fictitious dialogues and scenes to rewrite the beginning and end of the FTX incident. The tweets, report screenshots and other materials in the article are all real documents, suitable for partners who need to understand the event through scene imagination. "This incident has caused huge losses to a large number of investors. I sincerely hope that everyone will not lose hope, and hope that there will be a result that minimizes the damage."

[++French knowledge++] FTX event—— By @KO++FL/加加

The topic of this discussion on current affairs is: the FTX thunderstorm event that will really chill people in the currency circle in the winter of 2022. Starting from understanding the "bankruptcy procedure", discuss "wallet and cryptocurrency characterization", "legal relationship with FTX", and finally imagine " If the same event happens in Taiwan" for comparison.

This article makes a super-comprehensive legal analysis of the FTX bankruptcy event. In addition to answering the basic question "Why FTX is applying for Chapter 11 bankruptcy protection", there are also questions that investors will care about "Can creditors get their money back?" Is there a contract with FTX?", "The FTX platform does not allow users to withdraw the cryptocurrency in the wallet, what rights can we claim against FTX?", etc., and also with the famous Lehman Brothers in 2008 Comparing with this case, it answered the consumption sustenance relationship with Taiwan’s local exchanges in a more localized manner.

FTX In -Depth Data Review—— By @Footprint Analytics

By monitoring the data on the chain, it is possible for us to discover early warning signals and timely discover the possible risks of account funds in CEX or DEX. In FTX’s case, several key indicators indicated that people were losing faith in the platform and were scrambling to get their funds out…Footprint built some dashboards based on wallet addresses published by FTX and Binance. You can also check the reserve funds of addresses published by different exchanges.

Footprint Analytics visualizes the blockchain data and more intuitively shows the serious early warning signs of the chain data before the FTX crash.

User perception

I can only start again, a brief investment record and review of the six-year currency circle—— By @吕少民darrenlu.eth

Before the incident, about 80% of the virtual currency assets were in FTX to buy bottoms, 10% were placed in Steaker’s conservative strategy, and 10% were placed in NFT blue chips. It just happened that I was really busy this week, and I didn’t carefully filter the messages of DC and Twitter. Although I had scanned relevant information in my impression, I didn’t think too much about the trust in FTX, and I missed the best time to escape. .
Compared with sadness and pain, it is more blame and helplessness towards oneself. In the past six years, I have escaped big and small thunderstorms and experienced the second round of bull and bear markets. I boast that I have grown slightly and kept about twice the profit. A wave was carried away.

The user @吕少民 started to review the market from his first contact with the blockchain in 2017, to the first bear market encountered in 2018, the establishment of the Chengda Blockchain Research Institute, and the bull market at the end of 2020, and Luna returned to zero. By recording things after entering the circle, reflect on "nothing is too big to fail, avoid risks if you should, don't bet on the 1% possibility". "Well, let's start again." I hope everyone can survive this wave and start again.

The second explosion in the currency circle this year - the perception after the FTX explosion—— By @ 猫眼看世界

1. The mistake of point 5 is still made, because FTX advertises that the assets within 10,000 USD have an 8% return, and I feel that if there is no place to put the currency, there will be at least 8%; plus the pledge of 25FTT coins can be free of handling fees, so above Set up several groups of grid trading robots. Because of this, it is still out of greed (laziness), and the assets are excessively concentrated in FTX, leading to today's results! The currency circle fluctuates greatly, there are many mines, and decentralization is king! of! Otherwise unconsciously concentrated again)

In May of this year, when the LUNA token of the Terra blockchain was reset to zero and "fallen to the ground", the author @猫眼看世界wrote six insights . After half a year, because of the FTX bankruptcy incident, I will look back and reflect. In addition to the impact of several waves of the bear market, this also reflects the characteristics of the Web3 world to some extent: it can make people "practice" quickly, and it can also make people resilient and recover.

The so-called I don’t need money, I’m wasting my youth—— By @豆油

FTX had a thunderstorm, and I heard many thrilling stories by accident. Some people put their money on the exchange and lost their wealth for a lifetime; some people put their company's money on the exchange and lost their company's wealth; …Later, I learned to put money in the organization, and learned how to exchange money for fuel that drives innovation (revolution). Although it may not be much for most people, about the salary earned by a resident physician in the first half of the year, this is a paradigm shift in my own life. The scale of thinking and worry has become larger, and I am very glad that I can face these realities.

Doudou is an explorer who turned from a doctor to a full-time Web3. After the FTX thunderstorm, he rethought, and quoted "The Narrow Corridor of Freedom", and raised questions by analogy: "When a region is not restrained by a national giant, humans want to escape. The protection of the cage of social constraints is likely to become a free person hunted by slave traders, but freedom may be a dangerous thing. The current cryptocurrency world is very similar, slave traders (take your money to fry) and authoritarianism The country (confiscated your money), which one do you choose?" "In the constraints of time, currency, and region, where is real freedom?"

start again

Written after the FTX incident: Those invisible management and usage costs in the cold wallet —— By @randomhandwritten

Since the bankruptcy of FTX , the despair of centralized exchanges has set off a wave of "self-custodial assets" in the currency circle. In the past week, people searched for "hardware wallet" (hardware wallet) as hot as the past year highest peak. And in the past few days, it is also the first time I have heard the word "cold wallet" from some retail friends in the currency circle around me. However, in the past six months of using the cold wallet, I think that the hidden cost of using the cold wallet is much more than imagined, and it is definitely not just a few thousand Taiwan dollars used to buy the cold wallet on the account. It coincides with a major change in the currency circle, so I wrote this article to share the details and experience I paid extra attention to when using the cold wallet, as a reference for everyone, and it can be regarded as a record.

The "wallet" in the currency circle refers to "a tool that can store private keys (understandable as passwords)", which can be roughly divided into two types: software wallets (hot wallets) and hardware wallets (cold wallets). After FTX went bankrupt, people began to pay attention to the risk diversification effect of "cold wallets", but @random handwritten analysis said, "The larger the scale of assets you hold in the currency circle, the more you will find out how much assets you manage. The more disturbing you are, the more you will feel the so-called "decentralization", which refers not only to the decentralization of power, but also the decentralization of responsibility. People who can take full responsibility for your own assets, Maybe it's just you."

Huang Yaowen, CEO of XREX: FTX bankruptcy follow-up effects and due preparations—— By @XREX

Whether it is in nature or in the industry, the periodic market winter is an anti-fragile mechanism in this world to test the strength of individuals and groups, eliminate the weak and retain the good, and stimulate evolution. The "father" of our industry, Satoshi Nakamoto, published the Bitcoin white paper on October 31, 2008 after Bear Stearns Bank, Merrill Lynch Securities, and Lehman Brothers Bank faced bankruptcy crises one after another. But no matter how much time it takes to study history, it is not as profound as the personal experience, and only by participating can we learn quickly... Human beings can always evolve again in every cold winter. I believe this is the first time that many people have experienced such a level of financial turmoil in their lives. This is both a blessing and a curse. Such pain can give us a deeper understanding of the financial world and a deeper reflection on ourselves and our lives.

Taiwan’s fiat currency and cryptocurrency exchange XREX completely emptied all assets in FTX due to internal risk control mechanisms in September this year. Wayne, the CEO who once came to the Matters Discord to share, reposted the post on Facebook. Post Matters, and share with you the ten things that should be paid attention to next, including possible problems caused by the collapse of market confidence, hidden risk infection, "quick turnaround" gambler mentality, and gambling-style speculative transactions. Another article by XREX Chief Revenue Officer Xiao Huizong shared more ways to judge risks and the "ethics" of whether to publicly warn:

"As a person who joined the currency circle in 2013, stepped on two big thunders and traps of different sizes, once ran an early exchange in Taiwan but was hacked, and is still actively involved in the cryptocurrency industry, I run the XREX exchange myself As far as I am concerned, what I want to say is that blockchain technology will continue to bring great changes to the world, and I hope to see this happen and be a participant and contributor in it.”

About Proof of Reserve - By @giga

Recently, the term Proof of Reserve (PoR) must have been heard frequently because of the FTX incident. What exactly is PoR? Proof of Reserve, as the name suggests, is the proof of exchange assets, and what is the process of PoR, and what kind of PoR is credible, this article wants to share with you.

In the traditional financial market, each financial step is decentralized and controlled by different institutions, and the laws and regulations are correspondingly constrained, but in the ever-changing Web3 world, it is necessary to prove the assets of the exchange through Proof of Reserve. "And what kind of PoR can be trusted and allow investors to believe that the exchange has enough reserves to pay for all withdrawals?" The article shares this issue and also provides every Web3 explorer who can pay attention when moving forward guide.

As Huang Yaowen, CEO of XREX, said, "Cold winter must exist, and it must exist...Humans can always evolve again in every cold winter." If you have any ideas to share, please leave a message to discuss, and sincerely hope that everyone can survive this The waves are difficult, let's bow together and go again.