ARK Invest CEO Explains Why Former FTX CEO “Didn’t Like Bitcoin”
On Sunday (11 December 2022), Catherine Wood, the Founder, CIO, and CEO of ARK Investment Management, LLC (aka “ARK” or “ARK Invest”) explained why the disgraced Co-Founder and former CEO of now-bankrupt crypto exchange FTX “didn’t like Bitcoin.”
Earlier today, Wood told her 1.5 million Twitter followers that in her opinion Sam Bankerman-Fried (aka “SBF”) did not like Bitcoin because he could not control it:
On 9 December 2022, Wood talked about how she expected the several major bankruptcies we have seen in the crypto space would affect the crypto market. According to a report by The Daily Hodl, during her interview with Yahoo Finance, Wood said:
“We do believe DeFi will actually get a boost coming out of this because it’s so obvious now – decentralized and transparent is the way to go... Those networks didn’t skip a beat. All of their transactions were completed, and there are all kinds of metrics saying they’re getting stronger now...
“I think what we’re learning because of FTX is how much more important fully transparent decentralized networks will be to financial services going forward... FTX, Celsius, 3AC were all closed networks. Opaque systems. You couldn’t see what was going on...
“And what happened, as they [centralized crypto firms] were going down, the people who were on the fully transparent distributed networks were able to get out scot-free. They saw that was going what was going on. There were margin calls for those who were over-leveraged… But the system worked. It didn’t skip a beat. Those other companies went out of business.“
https://youtube.com/watch?v=mk2Ii973XLQ%3Ffeature%3Doembed
On the same day, ARK Invest, which is an investment firm managing several exchange-traded funds (ETFs), published the November 2022 edition of its “The Bitcoin Monthly Report”.
This report said:
“Led by once-revered crypto leader Sam Bankman-Fried (SBF), crypto exchange FTX filed for bankruptcy, catalyzed by the unethical and likely illegal transfer of billions of dollars in customer deposits to sister company Alameda to meet margin calls…
“Catching most in the crypto and venture industry completely off guard, FTX’s collapse pushed the market into further capitulation. Billions of dollars-worth of customer deposits are locked on FTX; BlockFi has been forced to file for bankruptcy; broker dealer Genesis has halted customer withdrawals; and equity investors across the industry have marked their investments in FTX to zero…
“The ratio between bitcoin’s realized profits and losses reached an all-time low, suggesting recordbreaking capitulation. Net outflows from exchanges reach an all-time high. Bitcoin’s hash rate corrected as miners faced significant compression in profit margins. Long-term holders stood strong, as total long-term holder supply stabilized at 13.8 million BTC, near an all-time high…
“ARK’s conviction in decentralized and transparent public blockchains is as strong as ever. The FTX and other cases like Celsius and Alameda suggest that decentralization and transparency are paramount as antidotes to the gross mismanagement that can be associated with centralized intermediaries, especially fraudulent ones.“
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