Key Takeaways:
- The FTX collapse resulted in a contagion that saw the crypto market lose millions.
- However, the tragedy also spawned several new and hilarious memes.
NEW DELHI (CoinChapter.com) — The crypto market has been in turmoil following the collapse of the crypto exchange FTX. Crypto token prices plummeted, and investors lost millions, with the resulting contagion impacting other crypto firms and assets.
However, as is the case with every major crypto tragedy, the internet became flooded with memes on the FTX collapse.
Ranging from Sam Bankman-Fried allegedly being part of a democrat money laundering scheme to the classics, Twitter, Reddit, Instagram, and other social media platforms users left nothing untouched. Here are some of the best ones to help soothe the FTX-inflicted wounds.
1. Lost Some Bitcoins Kept In FTX? Think Of What FTT Investors Felt
Crypto investors who had assets stored in the wallets of the FTX exchange were unable to retrieve them after the FTX paused withdrawals. Furthermore, Binance CEO CZ’s tweet about dumping his exchange’s native token, FTT price plummeted in a matter of days.
While other crypto asset holders suffered, FTT token holders saw their investments go to zero. As a result, several token holders worldwide probably reacted the same way the lady in the above meme reacted- with tears in their eyes and a sad, helpless smile on their lips.
Honestly, a similar expression was on crypto investors’ faces several times in 2022, first with the Terra collapse and then the FTX contagion.
A majority of crypto investors entered the market in hopes of making it big and ending up with millions of dollars in profit. But the global economic downturn, macro headwinds, and finally the FTX crash means the above Lamborghini is the only one they would be driving for a while.
The crash resulted in wiping billions from the overall cryptocurrency market cap. Other tokens like Solana also suffered, due to association with some of Sam Bankman-Fried’s other projects.
Another meme, a bit dark in taste, highlights the plight of several crypto investors, who had funds locked up in one or the other project of Bankman-Fried. Many of them were small investors who had believed in the firm and invested their life savings in projects like Alameda.
For these investors, the recent crypto market collapse was especially painful. While the above meme is a humorous take on the investor’s plight, it is important to remember that the market always recovers.
2. Binance’s CEO Drove The Nail In FTX’s Coffin
FTX’s troubles worsened after Binance CEO Changpeng “CZ” Zhao said his firm would liquidate its entire FTT (FTX’s native token) holdings in the coming months. The tweet resulted in bank run that destroyed the native token of FTX.
As FTT prices plummeted, projects like Alameda, who held vast amount of the FTX native token, started selling other crypto assets (like SOL) to recover their losses and steady FTT. However, that idea failed to keep FTT’s ship afloat.
The above meme kind of aptly sums up the Binance-FTX twitter interaction and its impact on FTT token. Binance becoming the iceberg to the FTX-FTT token Titanic. The only difference being that the FTX Titanic was already sinking when it met the Binance iceberg.
3. FTX Is Fine, Money Is Safe, Said SBF…
And boy, that statement did not age well.
After Binance’s CZ tweeted about FTX’s troubles, Samuel Bankman-Fried (SBF) replied with a series of posts stating his crypto exchange’s financial health remained robust. Days after SBF’s statement, FTX filed filed for bankruptcy.
Naturally, the meme makers jumped at the opportunity, with the above meme highlighting the stance of SBF and die-hard FTT supporters. As the world burned around them, FTT holders believed Sam’s words and stayed calm. Regrets all around now!
Also Read: Naming Rights For Sports Arenas With Crypto Partnerships in Limbo as FTX Exchange Folds
Meanwhile, several crypto users alleged that Bankman-Fried founded FTX so that the Democratic Party can launder funds. A widely circulated, albeit unverified, post established that Ukraine invested the foreign aid, sent from the US, back into FTX, where Sam donated funds to the party coffers.
Additionally, the FTX founder also drew flak for not warning the crypto community of the upcoming collapse. Bankman’s tweets assuring the exchange’s customers quickly became lies when insolvency hit FTX, reducing investor trust in the crypto ecosystem.
Memes, like the one above, popped everywhere, giving a face to the FTX-Alameda contagion.
4. The Collapse Brought Crypto Naysayers Out Of The Woodwork
When hackers attacked the Ronin blockchain for upwards of $680 million, the “cryptocurrencies are a scam,” came out in full force. The same naysayers were present when the Do Kwon’s Terra blockchain platform collapsed.
It is not surprising the haters came out in full force when FTX died. Naysayers are of the opinion that FTX’s collapse is more proof that cryptocurrencies are a scam.
Cryptocurrency is a nascent sector with its list of haters. However, every failed crypto projects provides ammo to traditional investors.
5. But Crypto Supporters Still Believe
However, amid all the memes that dissed FTX and the crypto market, crypto investors continue to come to the market’s support.
The above meme highlights the similarities between the liquidity crunch that took down FTX, 3AC, etc. and the traditional banking system.
Traditinonal banks lend depositors money to borrowers, and if all depositors suddenly started withdrawing, the bank would collapse. However, traditional financial institution and central banks worldwide have been very critical of cryptocurrencies as a viable digital currency option. Kettle, meet pot…
Additionally, new crypto investors, who planned to profit from buying low after the Terra fiasco, woke up to the FTX disaster. As panic selling ensued, veteran traders remained calm since this wasn’t their first rodeo.
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