Busting the myth of Sam Bankman-Fried as genius trader

Everyone got duped by Sam Bankman-Fried

I have a “provocative” opinion about Alameda Research…

Alameda Research has never made any money and most likely had a massive hole 🕳️ in the balance sheet from their first day of trading.

The whole myth of Sam Bankman-Fraud and his team of clowns 🤡 being “super-star” traders was created to suck in money and assets on Alameda’s balance sheet.

Back in 2018, Alameda Research was pitching their infamous “guaranteed payback” loans.

Allegedly, Alameda Research had zero losing trading days, promised to repay in-full the loans no matter what are the market circumstances and was so profitable, that they were basically printing money.

If you have not seen the Alameda Research pitch deck from 2018, write me an email with “Alameda deck” in the subject and I will send it to you.

The whole thing was a scam from the first day.

We have to wonder how the team of “super-star” traders lost $12 billion (yes, that’s a billion with a B) during the Terra/Luna collapse, if they were so good, as the myth about them states.

The myth of SBF as a “super-star” trader comes from the story of Alameda Research capitalizing on the Kimchi Premium arbitrage (the price difference of Bitcoin in the South Korean Won compared to the rest of the world) which yielded up to $10 million per day.

I know of market makers who made money on Kimchi Premium arbitrage and it was exactly NOT how SBF described it.

SBF's story of the Kimchi Premium arbitrage was a part of his elaborate scam to create the myth of a genius trader.

Alameda Research was leveraged & long crypto - in all shape and form - when Terra/Luna imploded, they were stopped out and blew-up.

The myth is now busted and the “super-star” trader story ended with SBF going to jail.

#sbf #alamedaresearch #sambankmanfried #ftx