Seems like a domino in the lead-up to SVB's collapse.

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Thanks for writing a timely piece.

I think FTT should be included in the Asset side.

Although FTT is issued by FTX, it is not a financial asset which is also a debt of the issuer.

Gold is to nobody's liability what FTT is to FTX's asset(not liability)

As you can see B/S in https://www.ft.com/content/0c2a55b6-d34c-4685-8a8d-3c9628f1f185,

FTT is in asset side not in liability side.

Correct me if I'm wrong.


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I think there are two different things here: 1) what FTX imagined its balance sheet to be and 2) the financial reality of what it was doing. FTX issued those tokens and sold them for cash, including to its own less-than-arms-length sibling company Alameda Research. They should go on the liability side, regardless of how FTX thinks about them.

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Thank you very much for the reply.

I will think about that.

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