Crypto investors experienced a major meltdown as one of the leading exchanges in the space fell to rock bottom. FTX's fall in 2022 was one of the most dreadful time for the global crypto market with all eyes on the exchange's founder Sam Bankman-Fried.
While the FTX collapse shook most crypto traders and investors with SBF taking the fall for it all. Binance founder Changpeng Zhao was at the epicenter of the conundrum. It all began in November, 2022 when CZ publicly announced that he would be liquidating his firm's position in FTT, FTX's native token.
While CZ gave many reasons for this move a lot of market participants speculated his move in bringing down a competitor. CZ went on to say during that time:
Binance "won't support people who lobby against other industry players behind their backs."
Well, CZ's initial reasons for a pullback were, they sure did leave FTX investors in a bad shape. Not mention that SBF, he CEO of Alameda Research and the founder of FTX was brought to light by the move.
This complicated relationship that SBF and CZ shared has been of interest to many in the market and outside the space. In fact, a couple weeks ago revealed about a documentary in making that will examine the relationship between Sam Bankman-Fried and Changpeng Zhao. The production is said to be a partnership between media outlet Fortune and Unrealistic Ideas, a company co-founded by American actor Mark Wahlberg, Stephen Levinson and Archie Gips.
Well, since CZ and SBF now have not just investor eyes but also Hollywood cameras on them, we at VOC thought of a hypothetical conversation between the two to-be movie stars.
What better than the AI star ChatGPT to create a conversation between CZ and SBF about the FTX crash.
When we asked ChatGPT to create a conversation between CZ and Sam Bankman-Fried here's what we got:
"Sam: Hey CZ, have you heard about the crash on FTX?
CZ: Yes, I heard about it. What happened?
Sam: It looks like there was a large sell-off on one of our futures markets that caused a cascading liquidation of leveraged positions. We're still investigating the cause, but it looks like it was triggered by a single large order.
CZ: That's a pretty serious issue. What steps are you taking to prevent something like this from happening again in the future?
Sam: We're working on a number of measures to improve our risk management systems, such as implementing circuit breakers and adding more liquidity to our order book. We're also looking at ways to improve our liquidation process to minimize the impact of large market moves.
CZ: That's good to hear. I know your team is working hard to get to the bottom of this. How are users affected by this?
Sam: Some users did experience significant losses, and we're working on compensation plans to help make them whole. We're also offering reduced trading fees and other incentives to help encourage users to come back to our platform.
CZ: That's a good move. It's important to show your users that you're taking their losses seriously and that you're doing everything you can to make things right.
Sam: Absolutely. The safety and security of our users is our top priority, and we're committed to doing everything we can to prevent something like this from happening again in the future.
CZ: I'm glad to see you're taking the necessary steps. Let me know if there is anything we can do to help.
Sam: Thanks CZ, I appreciate your support."
ChatGPT further added that:
"It's important to note that this is a hypothetical conversation and it's not based on any factual information. Also, FTX has a robust risk management system and it's been one of the most reliable platforms in the crypto market with no major crash or hack so far."
However, talking about the "robust risk management system" that FTX has would be a step too far, looking at the millions of dollars that investors lost in the exchange.