Hey guys, it's Sasha In the last few hours, yet another crypto exchange has gone bankrupt. This time, it's Block Fight. And in case you don't know what Blockfi is Andre Dick promoted it in the video a few days ago where he talked about the collapse of FTX the crypto exchange that collapsed a few days before that. you really could not make this up. I Guess Andre is right now busy finding the next scam crypto exchange that he can promote in the video about the collapse of Block Fight. To be fair to: Andre he is not the only degenerate YouTuber who promoted this garbage. Graham Stefan meet Kevin and pretty much everybody else on YouTube was Shilling Block fine because they paid money to promote their scam and all of these idiots walked right into it again and again. We are going to have the same sob story that we've heard every time. How could possibly anybody have known? It was impossible to tell that this is a scam. It was impossible to know Voyager was a scam When Voyager collapsed. it was impossible to tell that X was a scam. When FTX collapsed, it was still impossible to tell that Blockfi was a scam for sake. Anyone who actually has a brain knew that when a crypto exchange pays you ridiculous stupid amounts of money as interest for staking foreign excess of anything that any normal financial company could possibly reasonably pay, then the reason that they can afford to pay this money is because it is a Ponzi scheme. when a crypto exchange throws huge advertising money ridiculous amounts more than normal amounts by several orders because they sell people worthless tokens on their platform. It is a pump and dump scheme. and yes, I got offered the same deal by Block Fight and you know what? I didn't take it and do you know why? Because it was possible to tell that it was a scam if you weren't a greedy in the last few hours. Graeme Stefan published an apology video for Shilling FTX except he spent the vast majority of the video justifying his actions, somehow trying to explain them instead of actually apologizing and I think he made it a few hours too early because he forgot to apologize for Shilling Blockfire that has now gone bankrupt as well and the excuse was that he did his due diligence on FTX by asking FTX are you a scam on a 30-minute phone call and do you know what FTX said no, we're totally legit. shut up and take the money. the money, by the way, being way more than any normal sponsor would ever pay and because FTX said no, they were clearly not a scam. That's how due diligence works, right? What kind of a scammer would pretend that they were totally legit? Am I right? The problem we have is that people who do not understand even the most basic things about Finance who fall for this kind of who have zero experience in anything Finance related happen to be the biggest Finance influences on YouTube because at the the end of the day YouTube is an entertainment platform. So naturally the biggest Finance influencers are professional salesmen who used to sell real estate in LA and a dude who used to do magic tricks for a living who can't stop selling every scam going. And according to these guys, it was absolutely impossible to see the giant off elephants standing right there in the middle of the room. The obvious question then becomes if this is the level of erudition that these guys apply to managing their actual business and their own money. What are they doing? Teaching anyone anything about managing their money or managing their Affairs How Come every time that they make a really stupid mistake like promoting Shiba Inu flaky Inu knows what? Inu They go and make the same exact mistake over and over and over. There is no learning. The same keeps happening. One scam after another hump and dump scheme after another, Ponzi scheme after another. and I guess if you take all of this dirty money, promote this to your viewers so that they lose a load of their money too. When the scam does eventually collapse, which they always do, all you have to do is make a half-assed apology video and all is forgotten. It's all great. It doesn't matter that a load of people lost a lot of money. You have said sorry, so all is good soon. Everyone will forget that you actually took hundreds of thousands of dollars for actively promoting and encouraging this degenerate on the 13th of November when FTX was imploding because Sam Bankman free stole all the money CZ The guy who was the CEO of Binance the biggest platform out there that is generally revered as some kind of a God by crypto. Bros Tweeted: If an exchange has to move large amounts of crypto before or after they demonstrate their wallet address, it is a clear sign of problems. Stay away, stay safe. And of course, exactly two weeks after tweeting that the day before yesterday, they Binance went and moved two billion dollars worth of Bitcoin to an unknown address. according to Caesar This is because in order to ask them to move it to prove that they own the address because nothing says that you own a wallet like moving 2 billion dollars out of it for no particular reason. There is no Auditor in the world who would request you to move two billion dollars from one account to another to prove that you own the account. No auditor that isn't a scumbag. This is just another day full of horseshit in the world of crypto. Just in case you missed the blockfy story, blockfi actually lent money to FTX who then lent that money to Alameda I Say lent. They're more like just gave the money over the common balances. They stole it anyway. Alameda then went and lented that money to a shell company called Emergent this one also owned by Sam Bankman Freed and he used that money to buy up a boatload of Robin Hood shares that he then uses collateral to borrow more money from from Block Fi from blog fight that he then used to bail out Block Fight I'm not sure I've got that exactly perfectly right? but I think we got the gist. The overall gist here is that Crypto is a giant fake leverage. Fest Imagine that you and I each start a crypto company and we each have zero dollars. I Create a token called Fluffy Unicorn and you go and create an Nft collection called the Funny Underwear Chimps. So we now each have an asset fit me and you now to create a load of wealth I Can borrow your Nfts and you can borrow my crypto tokens. So the transactions look roughly like this: I Think you and you me and now you have a load of assets and a thick load of liabilities. And because you have all of these assets, you can go and borrow real money against them. You know the stuff that you can actually buy real things with and use your balance sheet as collateral. And this is exactly how all of these crypto exchanges have actually been operating. There is a reason why they all have a giant boatload of each other's Monopoly money on their balance sheets. And one issue with this kind of fraud is that when one of these dimwits decides to steal the money and run, everybody else is left there holding their private parts in their hands. which is roughly what happened with FTX. Now the remarkable fact is that Sam Bankman Freed is still a free man going about his business in the Bahamas. It seems that the consensus among regulators and politicians is that this guy just made an honest mistake. He didn't just steal 10 billion dollars. It was a little misunderstanding, you see, and if you think otherwise you are a conspiracy not job. This has absolutely nothing at all to do with SBF being the second biggest donor to the Democrat Party who happened to be in power. And the remarkable thing is that the regulator seem to be absolutely impotent as well. The fraud was bad, but the cover-up of this fraud is the sort of that you will read about in history books and wonder how the actual was this allowed to happen. Everyone who profited from the fraud gets to keep their money, the Democrats get to keep their money, the YouTubers get to keep their money, and eventually some other news headlines will turn up and take over. I Guess the idea is that by that point everyone will just forget that this whole show happened in the first place. Wanna look at the website of Blockify? shows you how deep this stuff goes? Here is a list of the idiots who invested in this fraud and look, the big guns are all in on the fraud. Bain Capital is right there Tiger Global is there Villar Ventures is there. That's Peter Thiel's company. He's the owner and Valar apparently owns 19 of Block Fight Peter Theo by the way, is the founder and the largest shareholder of Palantir, the company that deals with data on behalf of the US government, the US, Army, the US police forces, the FBI, etc etc etc. Now do you think this guy, the guy who owns the only company in the world with level 6 security clearance Friends with the Department of Defense and the US government. Do you think he invested a ton of money into Blockfi and had absolutely no idea what was happening there behind the scenes had access to no data whatsoever. Do you think these investors were duped by these crypto? Bros Do you honestly think these greedy private Equity companies and hedge funds just blindly gave their money, didn't care whatsoever about what happens with it, Did not know what the balance sheets of these scam companies look like? Do you think that I don't? because that's not how any large investor operates. I Personally have worked for companies with large private active investment and if those guys are going to give you a load of money, they better know exactly what the it is that you're going to be doing with it. In this business, they are going to demand board seats. They're going to demand monthly reports. So the unfortunate fact is that either all of these large investors magically at the same time didn't do any due diligence whatsoever ever on what they were investing hundreds of millions of dollars into ore. They all knew full well what this under the Bonnet looked like. and they were very happy to gamble because they were standing to make a load of money from this scam. And of course, when the House of Cards falls apart, these guys don't want anyone poking their noses into what actually went down. Who actually knew what they have all the right Connections in the government, all the right connections, were the regulators, and with the police. in the case of Palantir, they literally provide the systems that the police and FBI used to track this down. This is so Bonkers and of course the Winklevoss Twins were also part of this through Winklevoss Capital. Remember they had their own crypto Ponzi scheme called Gemini Earn that went under a few weeks ago as well. And what do we have here? Oh, Coinbase also happens to be an investor in Blog Fight and so is Sofi and these guys are a pound only regulated in the US and according to their CEO, Coinbase is absolutely fine and in no way affected by what happened at FTX. Trust him, because they are a trustworthy public company that either completely negligently invested in dog like Block Five because they are completely incompetent idiots, or they knew all along exactly what Blockfire was doing and we're perfectly happy to take on the risk. One of these two has to be true. Whichever way it is, it doesn't exactly look good for Coinbase. The problem for Coinbase is that their revenues are entirely dependent on the price of Bitcoin. So last year when Bitcoin was trading at all-time highs, Coinbase made 5.3 billion dollars worth of Revenue in the first nine months of the year. and this year they have made just 2.6 billion dollars in the same period. Less than half last year they made a big profit. This year they have lost over two billion dollars. and the problem here is that the cost of a business like this like salaries are priced in dollars while your revenues come in the form of Monopoly money. And so, Coinbase have lost over two billion dollars of cash so far this year. The balance sheet shows that they have 5 billion left. There are no other real assets at all in the balance sheet here. Presumably, they're not going to steal their customers money, although it wouldn't surprise me given what's happening these days. But look, they also have 3.4 billion dollars worth of long-term debt and they've burned through 4.8 billion dollars in operating activities so far this year. So if the price of Bitcoin stays down for the next year, it looks like Coinbase is also going to be in some deep fundraising. When your stock is heading towards zero is going to be pretty hard and I don't know how many idiots are left out there that will actually lend them money. I Am sure everybody is going to be very surprised when it happens again. In the last three months, Coinbase is operating expenses were double their revenue. the professional term for this kind of setup is really bad. And now that the Crypto Bros have lost all of their pocket money across all of these different scams falling apart one after another next year could look incredibly Bleak for crypto unless of course, the Crypto Bros Go and invent yet another scam now that Nfts and Crypto tokens have found their rifle placed down the toilet.