How FTX company became owner of 32$ Billion from 1$ dollars.

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Assalamualaikum I hope everyone is well. I am also very well by the grace of God. I am back with a new post. Hope everyone will benefit.

I will be discussing FTX today. We already know that FTX is bankrupt. What is the reason for bankruptcy? Let's talk about that and why are they coming back to us after all this? I will discuss about that. I hope everyone will be with us.

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Collected pictures from here

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I don't know Sam Bankman Fried who talks about cryptocurrency in my life. There is probably no one who does not know Sam Bankman Fried but does not know FTX Company. There are thousands of exchangers in the Crypto world. FTX Exchanger was number 2 among them. Sam Bankman Fried was the owner of this company. He is a billion years in the crypto world.

A few months ago Sam Bankman Fried FTX company dropped from 32$Biliion dollars to 1$. Many may not know why this happened. So today we will try to know about this matter.

We all know Binance is the best and number 1 cryptocurrency exchange in the world. And FTX was the 2nd cryptocurrency exchanger in the world. When FTX comes to the marketplace, binance buys some shares of the FTX company. Binance thought we were the best and number 1 cryptocurrency exchange in the world and no one could beat us, so we probably wouldn't have much work to do. We will use FTX for rough work. So binance buys some shares of FTX company.

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Collected pictures from here

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But it can be seen that within 2 years FTX has moved so high it is beyond imagination. Where Coinbase has been trying for 12 years. Binance has been trying for 8 years. At that time, Binance was thinking that in a few years, it might overtake us.

So binance sold all the shares of FTX to them. Now FTX gave that share price to binance at 2 coins. 1. BUSD (binance stable coin). 2. FTT (FTX stable coin).

On November 6, 2022, Binance CEO CZ tweeted, "I sold FTX shares a long time ago. We will now sell all the FTT coins that were given to us for selling. Shortly after this tweet, 600 million FTT coins were sold.

Then FTT COIN begins to fault. Then a document is viral. The document was written in the document, FTX was saying that there are 14 billion dollars in their reserves. But it was not 6 billion dollars in their reserves. And the rest were 7 billion ftt coin. Then the price of FTT Coin decreases and reduces their reserves.

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Collected pictures from here

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FTX users get scared as reserves fall. Then the users go to their website and say back our font. Then the font could not be given back to the users.

Why could not give users back the font? I will give you an example of that. Think we are all going to a bank dollar. Now if everyone wants to take dollars together then that bank will not be able to pay. Because they took dollars from us and gave them to other people. Other people will give then they will give to us. If you can't pay now, the bank will be declared bankrupt.

A similar story happens with FTX. All users wanted their cryptocurrency back at the same time. FTX did not have so many dollars then. So stops his withdrawal. FTX then declared bankruptcy and Sam Bankman Fried was taken into custody by the police. This was the FTX company story.

Now FTX company will come back. They have already announced. When will they come back and what will they do to the community I will tell you in detail in the next post. Today I finished here. Everyone will be fine. Allah Hafez.

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I am Md. Ebrahim Islam Nahid. Everyone calls me Nahid. I am Bangladeshi. I am an Electrical Engineer. I love reading books, writing and creating new things. I try to express myself and evaluate the opinions of others.