In this episode of Empire, Arthur_0x, the founder of Defiance Capital, joins us to discuss the fallout from FTX's collapse. Arthur is a DeFi OG with a unique perspective on market dynamics and ecosystem-wide liquidations. His fund was directly impacted by the 3AC meltdown, giving Arthur a front-row seat to the complexities of liquidations and contagion.
We discuss Alameda's outsized contagion risk, why this might be the most complex liquidation in history, the damage to the Solana ecosystem, private vs public markets and more!
- -
Timestamps:
(00:00) Introduction
(01:02) The Unintended Consequences Of Authority
(05:37) Due Diligence In A Bull Market
(08:18) What Was Great About FTX?
(10:40) FTX Contagion Explained
(18:05) Did You See Red Flags?
(23:45) Did Sam Always Have Bad Intentions?
(28:04) Why Did CZ Wait Until Now?
(30:47) Circle Ad
(32:48) Damage To The Solana Ecosystem
(39:48) The Most Complex Liquidation Process In History
(44:38) Tokens vs Equity, Private vs Public Markets
(53:30) Arthur’s Biggest Takeaway
- -
Follow Arthur: https://twitter.com/Arthur_0x
Follow Jason: https://twitter.com/JasonYanowitz
Follow Santi: https://twitter.com/santiagoroel
Follow Empire: https://twitter.com/theempirepod
Subscribe on YouTube: https://tinyurl.com/4fdhhb2j
Subscribe on Apple: https://tinyurl.com/mv4frfv7
Subscribe on Spotify: https://tinyurl.com/wbaypprw
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
--
Circle’s USDC has quickly become one of the most trusted and widely used stablecoins because of its composability, stability and reserve transparency. As a seamless, trusted digital currency, USDC is a zero-to-one opportunity for the global financial system. Check out their Transparency Hub at http://empirepodcast.link/circle that outlines everything from links to USDC weekly reserve reports, monthly attestations, and blog posts written by their executive team highlighting how and why USDC was built the way it is.
- -
Resources
Sequoia's FTX Memo
https://twitter.com/zebulgar/status/1590394857474109441
Solana FTX Documentation Page
https://solana.com/news/solana-facts-ftx-bankruptcy
Defiance Capital
https://defiance.capital/
- -
Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.