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The global crypto industry is trading under increased selling pressure and volatility due to the recent Sam Bankman-Fried (SBF) FTX collapse. The former FTX CEO seeks to generate recovery funds amid the crisis. However, Ripple’s CTO has slammed SBF over its trading method.
Ripple CTO slams SBF
David Schwartz, Ripple CTO in a Twitter thread mentioned that people describe SBF as a “Great Trader”. Every trader made good money during the massive bull run in the crypto market. This was the same time when SBF made money.
However, when the market went down, SBF’s trades massively blew up. Ripple CTO suggested that maybe he was just taking a massive directional risk. He highlighted that one of the easiest ways to fool others into thinking that one is a great trader is to take minor risks.
Ripple CTO added that this works most of the time and helps to make a regular profit. However, it is a reverse lottery though. While there is a very small chance that someone can lose $16 billion of your customer’s money.
SBF claimed that he lost track of how much leverage he had and how much risk was taking at that time. Ripple CTO slammed Sam and said that if that’s true then SBF is a “Terrible Trader”. The most important trading skill is understanding and tracking the amount one is willing to risk in the market.
David compares FTX fall with Celsius
Ripple CTO suggests that it is not a sign of a great trader. He compared this collapse with the fall of companies like Celsius where they arrange things so that they get maximum profits.
These firm seek small risks of massive losses then they shift those loses to users or customers who will know the risks the company is taking.
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