Reading all these articles and tweets about FTX and Binance -- and frankly I have no freaking idea what is the background.
So would any kind soul enlighten me on what's the backstory here?
PS: I think there is a should be a service that provides you a background for any given news article. You paste in the url and it gives you the "need to know before you read this story"
https://www.reddit.com/r/explainlikeimfive/comments/yr3ypv/c...
Here is an explanation that seems biased against CZ (Changpeng Zhao).[1]
Here is an explanation that seems biased against SBF (Sam Bankman-Fried).[2]
FTX was an exchange for Cryptos. No problems there. They also offered a coin of their own. Also, no problems.
But then they borrowed a bunch of money against the value of their coin. Fundamentally not good, because it means they now owe customers more money than the customers put in.
There was also a trading house that they ran on their own exchange, a competitor who might have triggered the collapse as a prank (Binance), and an over exuberant owner who always seemed to be above this sort of mess.