Alameda Research Might Retire From The Beginning in 2018
Key Points:Alameda’s trading algorithm was designed to handle large numbers of automated and fast transactions. However, it has caused losses as early 2018 because of wrong price movements.
SBF promised potential lenders annual returns up to 20% in cash or cryptocurrency in late 2018. This money could be used to build FTX.
According to the Wall Street Journal, who cited people familiar with the matter: Alameda’s trading algorithm is designed for large numbers of automated and quick transactions. However, it also caused losses in the early 2018 due to incorrect price movements. Sam Bankman-Fried, Alameda’s owner, requires more capital to stay afloat. According to people familiar with the matter, he promised potential lenders annual returns up to 20% in cryptocurrency or cash. Su Zhu, of Three Arrows Capital, also tweeted that SBF had promised funds to Alameda. Source: The Wall Street Journal. In January 2019, Alameda sponsored the Binance Blockchain Week conference. SBF used this opportunity to network with investors and secure financing for his struggling trading company. FTX was introduced in April 2019 to provide institutional investors a safe haven. Alameda was used by Bankman Fried to support the expansion of the trading company as it became the primary market maker. It was always available to other traders who wanted it to sell or buy from them. Source: The Wall Street Journal. The latest investigation revealed that Alameda was doomed right from the beginning. Instead of simply saving it with borrowed money in 2018, Bankman Fried later utilized it to launch and support the expansion of the now-defunct FTX cryptocurrency exchange.The new complaint by the United States Securities and Exchange Commission (SEC) argues otherwise, contrary to Bankman Fried’s earlier assertion that Alameda and FTX have always operated independently.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: 3ACAlameda ResearchFTXSam Bankman-FriedSBF