{"id":11753,"date":"2022-11-11T02:52:51","date_gmt":"2022-11-11T06:52:51","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=11753"},"modified":"2022-11-11T02:52:51","modified_gmt":"2022-11-11T06:52:51","slug":"krakens-jesse-powell-blast-ftx-and-sam-bankman-fried-without-naming-them","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2022\/11\/11\/krakens-jesse-powell-blast-ftx-and-sam-bankman-fried-without-naming-them\/","title":{"rendered":"Kraken\u2019s Jesse Powell Blast FTX And Sam Bankman-Fried Without Naming Them"},"content":{"rendered":"

Leave it to Jesse Powell to say what everyone in crypto is thinking. \u201cI\u2019m really trying to control my rage,\u201d the mind behind Kraken tweeted to begin his rant<\/a>. In the following article, we\u2019ll comment on several of his very interesting points. Make no mistake, though, Jesse Powell thinks this isn\u2019t over and the crypto industry will have to work for years to make up for\u2026 some other cryptocurrency exchange\u2019s mistake. \u201cMore business failures are sure to come as the contagion spreads,\u201d he warned.<\/p>\n

2\/ Our good, trusting nature makes us easy targets for con artists. Some even tell us straight up that they’re here for profits, not crypto, and we praise them for their honesty.<\/p>\n

Yet we’re surprised when they turn out to be who they said they are. We need to raise our standards.<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n\n

At one point, Powell even gave the best advice possible for future crypto investors. \u201cDon\u2019t trust. Verify.\u201d<\/p>\n

What he didn\u2019t do, though, was naming Sam Bankman-Fried, FTX, or Alameda Research. We are assuming this is all about them, but it\u2019s just an assumption.<\/p>\n

Jesse Powell Allegedly Blast Sam Bankman-Fried<\/h2>\n

First of all, the head of Kraken doesn\u2019t buy the \u201cI made a mistake\u201d line that Sam Bankman-Fried has been feeding the public via Twitter. And Powell doesn\u2019t mince words while saying he doesn\u2019t.<\/p>\n

\u201cThis isn\u2019t about aiming high and missing. This is about recklessness, greed, self-interest, hubris, sociopathic behavior that causes a person to risk all the hard-won progress this industry has earned over a decade, for their own personal gain.\u201d<\/p>\n

The thing is, Sam Bankman-Fried didn\u2019t only blow up his two billion-dollar businesses. He blew up the whole crypto industry. \u201cWe give them power to speak for us but they haven\u2019t earned that privilege. When they blow themselves up, it\u2019s our house, our reputation, our people which bear the brunt of the damage,\u201d Powell tweeted. And he\u2019s probably right about this. Everyone will have to pay for\u00a0 Bankman-Fried\u2019s mistakes.<\/p>\n

5\/ The damage here is huge. An exchange implosion of this magnitude is a gift to #bitcoin<\/a> haters all over the world. It’s the excuse they were waiting for to justify whatever attack they’ve been keeping in their back pocket.<\/p>\n

We’re going to be working to undo this for years.<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n\n

Then, in a bizarre turn of events, Jesse Powell brought bitcoin into the mix:<\/p>\n

\u201cAn exchange implosion of this magnitude is a gift to bitcoin haters all over the world. It\u2019s the excuse they were waiting for to justify whatever attack they\u2019ve been keeping in their back pocket.\u201d<\/p>\n

What does the FTX implosion have to do with bitcoin? In fact, out of all the crypto world, bitcoiners are the less affected by all of this. In bitcoin culture, the self-custody of your assets is paramount. And people who make the effort and self-custody aren\u2019t directly affected by exchanges blowing up and losing their customer\u2019s hard-earned money. They are affected by the price movements these black swan events generate, though.<\/p>\n\n

FTT price chart for 11\/10\/2022 on Binance | Source: FTT\/USD on TradingView.com<\/a><\/p>\n

Are The Media, VCs, And The US Government To Blame?<\/h2>\n

This is the most interesting part of Jesse Powell\u2019s rant. As bitcoiners denounced Sam Bankman-Fried\u2019s shady business model left and right, the man became a media darling like few others. His frequent political donations, the way he said what the establishment wants to hear about crypto regulation, and the whole myth about him being an effective-altruism vegan were the perfect combination.\u00a0<\/p>\n

\u201cVCs, the media, the \u201cexperts\u201d failed. People torched their own reputations vouching for individuals, projects, businesses they had not diligenced.\u201d<\/p>\n

We\u2019re pretty sure \u201cdiligenced\u201d is not a word, but Jesse Powell\u2019s message stands. The media failed miserably and led retail astray. They will never admit to their wrongdoings, but Sam Bankman-Fried was on the cover of \u201cFortune\u201d a couple of weeks ago. \u201cThe New Warren Buffet?\u201d was the article\u2019s title.<\/p>\n

9\/ Red flags:* acting like you know everything after showing up to the battle 8 years late* 9 figs buying political favor* being overeager to please DC* huge ego purchases, like 9-fig sports deals* being a “media darling”, seeking out puff pieces* EA virtue signaling* FTT<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n\n

What about VCs, though? Aren\u2019t they at least partially responsible for financing FTX? Before you answer, read what Jesse Powell has to say about it. He\u2019s got inside information:<\/p>\n

\u201cI know for a fact that VCs wrote checks blindly. Why? Because revenues were strong. Were they sustainable? Were they bleeding out money the other side? Was it all predicated on an untenable self-dealing setup, frontrunning clients, misappropriation of user funds? Never asked.\u201d<\/p>\n

11\/ US lawmakers & regulators have some accountability too. You drove this business offshore because you refused to provide a workable regime under which these services could be offered in a supervised manner. Enforcement wrongfully focuses on convenient, on-shore good actors.<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n\n

Last but not least, what about the US Government and its lack of crypto regulation clarity?<\/p>\n

\u201cUS lawmakers & regulators have some accountability too. You drove this business offshore because you refused to provide a workable regime under which these services could be offered in a supervised manner.\u201d<\/p>\n

Jesse Powell is not saying those institutions are as guilty as Sam Bankman-Fried allegedly is, but they really dropped the ball on this one. And, as it always happens, the people suffered.<\/p>\n

Featured Image by Luke Jernejcic<\/a> on Unsplash<\/a> | Charts by TradingView<\/a><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Leave it to Jesse Powell to say what everyone in crypto is thinking. \u201cI\u2019m really trying to control my rage,\u201d the mind behind Kraken tweeted to begin his rant<\/a>. In the following article, we\u2019ll comment on several of his very interesting points. Make no mistake, though, Jesse Powell thinks this isn\u2019t over and the crypto industry will have to work for years to make up for\u2026 some other cryptocurrency exchange\u2019s mistake. \u201cMore business failures are sure to come as the contagion spreads,\u201d he warned.<\/p>\n

2\/ Our good, trusting nature makes us easy targets for con artists. Some even tell us straight up that they’re here for profits, not crypto, and we praise them for their honesty.<\/p>\n

Yet we’re surprised when they turn out to be who they said they are. We need to raise our standards.<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n

At one point, Powell even gave the best advice possible for future crypto investors. \u201cDon\u2019t trust. Verify.\u201d<\/p>\n

What he didn\u2019t do, though, was naming Sam Bankman-Fried, FTX, or Alameda Research. We are assuming this is all about them, but it\u2019s just an assumption.<\/p>\n

Jesse Powell Allegedly Blast Sam Bankman-Fried<\/h2>\n

First of all, the head of Kraken doesn\u2019t buy the \u201cI made a mistake\u201d line that Sam Bankman-Fried has been feeding the public via Twitter. And Powell doesn\u2019t mince words while saying he doesn\u2019t.<\/p>\n

\u201cThis isn\u2019t about aiming high and missing. This is about recklessness, greed, self-interest, hubris, sociopathic behavior that causes a person to risk all the hard-won progress this industry has earned over a decade, for their own personal gain.\u201d<\/p>\n

The thing is, Sam Bankman-Fried didn\u2019t only blow up his two billion-dollar businesses. He blew up the whole crypto industry. \u201cWe give them power to speak for us but they haven\u2019t earned that privilege. When they blow themselves up, it\u2019s our house, our reputation, our people which bear the brunt of the damage,\u201d Powell tweeted. And he\u2019s probably right about this. Everyone will have to pay for\u00a0 Bankman-Fried\u2019s mistakes.<\/p>\n

5\/ The damage here is huge. An exchange implosion of this magnitude is a gift to #bitcoin<\/a> haters all over the world. It’s the excuse they were waiting for to justify whatever attack they’ve been keeping in their back pocket.<\/p>\n

We’re going to be working to undo this for years.<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n

Then, in a bizarre turn of events, Jesse Powell brought bitcoin into the mix:<\/p>\n

\u201cAn exchange implosion of this magnitude is a gift to bitcoin haters all over the world. It\u2019s the excuse they were waiting for to justify whatever attack they\u2019ve been keeping in their back pocket.\u201d<\/p>\n

What does the FTX implosion have to do with bitcoin? In fact, out of all the crypto world, bitcoiners are the less affected by all of this. In bitcoin culture, the self-custody of your assets is paramount. And people who make the effort and self-custody aren\u2019t directly affected by exchanges blowing up and losing their customer\u2019s hard-earned money. They are affected by the price movements these black swan events generate, though.<\/p>\n

FTT price chart for 11\/10\/2022 on Binance | Source: FTT\/USD on TradingView.com<\/a><\/p>\n

Are The Media, VCs, And The US Government To Blame?<\/h2>\n

This is the most interesting part of Jesse Powell\u2019s rant. As bitcoiners denounced Sam Bankman-Fried\u2019s shady business model left and right, the man became a media darling like few others. His frequent political donations, the way he said what the establishment wants to hear about crypto regulation, and the whole myth about him being an effective-altruism vegan were the perfect combination.\u00a0<\/p>\n

\u201cVCs, the media, the \u201cexperts\u201d failed. People torched their own reputations vouching for individuals, projects, businesses they had not diligenced.\u201d<\/p>\n

We\u2019re pretty sure \u201cdiligenced\u201d is not a word, but Jesse Powell\u2019s message stands. The media failed miserably and led retail astray. They will never admit to their wrongdoings, but Sam Bankman-Fried was on the cover of \u201cFortune\u201d a couple of weeks ago. \u201cThe New Warren Buffet?\u201d was the article\u2019s title.<\/p>\n

9\/ Red flags:* acting like you know everything after showing up to the battle 8 years late* 9 figs buying political favor* being overeager to please DC* huge ego purchases, like 9-fig sports deals* being a “media darling”, seeking out puff pieces* EA virtue signaling* FTT<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n

What about VCs, though? Aren\u2019t they at least partially responsible for financing FTX? Before you answer, read what Jesse Powell has to say about it. He\u2019s got inside information:<\/p>\n

\u201cI know for a fact that VCs wrote checks blindly. Why? Because revenues were strong. Were they sustainable? Were they bleeding out money the other side? Was it all predicated on an untenable self-dealing setup, frontrunning clients, misappropriation of user funds? Never asked.\u201d<\/p>\n

11\/ US lawmakers & regulators have some accountability too. You drove this business offshore because you refused to provide a workable regime under which these services could be offered in a supervised manner. Enforcement wrongfully focuses on convenient, on-shore good actors.<\/p>\n

\u2014 Jesse Powell (@jespow) November 10, 2022<\/a><\/p>\n

Last but not least, what about the US Government and its lack of crypto regulation clarity?<\/p>\n

\u201cUS lawmakers & regulators have some accountability too. You drove this business offshore because you refused to provide a workable regime under which these services could be offered in a supervised manner.\u201d<\/p>\n

Jesse Powell is not saying those institutions are as guilty as Sam Bankman-Fried allegedly is, but they really dropped the ball on this one. And, as it always happens, the people suffered.<\/p>\n

Featured Image by Luke Jernejcic<\/a> on Unsplash<\/a> | Charts by TradingView<\/a><\/p>\n

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