The huge changes in the crypto exchange market on Nov. 8 led to equally massive waves of commentary. The UpOnlyTV channel on Twitch was a beneficiary of this activity with Do Kwon and Martin Shkreli showing up simultaneously to talk about the deal between Binance CEO Changpeng Zhao (CZ) and FTX CEO Sam Bankman-Fried (SBF) for the purchase of FTX.
Shkreli, sometimes referred to as the โPharma Broโ for his role in that industry before his conviction for securities fraud, had doubts the Binance-FTX deal would work out. โI think the hole [FTXโs balance sheet shortfall] is a lot bigger than people think and I think thereโs a good chance Binance walks away, and I think thatโd be terrible,โ Shkreli said.
Kwon, whose Terra Labs issued the TerraUSD (UST) stablecoin, now known as TerraUSD Classic (USTC), that collapsed catastrophically in May, had more confidence in the deal, saying:
โIโm assuming the sale price is at a reasonable discount to whatever the private funding round was, but if CZ steps in and makes users whole, thereโs no reason why he [SBF] would be in any meaningful distress. Heโll probably move on to something else.โ
But when asked if he would invest in an SBF startup, Kwon demurred. โIโm not much of an investor,โ he said. โI think itโs too early to tell.โ
Speaking about the role of his โbravado and personaโ in the Terra/Luna collapse, Kwon said, โI donโt think that what happened with UST would have been any different if the way I conducted myself on Twitter was different. Actually, how I am in real life and how I am on Twitter is pretty different. [โฆ] There is value in being entertaining and funny.โ
โWell, in the list of villains for this year, Do is moving further down,โ Wintermute CEO Evgeny Gaevoy, another guest on the show, conceded. โItโs not that bad anymore, I guess, compared to Alameda and Three Arrows. [โฆ] He was a bit cocky, but whatever.โ
Another guest called him, โA sociopath, to be blunt,โ adding, โIโm not a huge fan.โ
Commenters on the live stream were no more forgiving. โDO KWON HAS TO PAY FOR MY LOSSES,โ one wrote. โSCAM KWON TO JAIL,โ wrote another.
Kwon did not respond to the speakers but later said, โI think what has been really helpful is the support of people we have worked with for years. I think the bad publicity has made it really hard for them to speak out in favor, in defense of what happened with UST, but Iโd like to think that, for people weโve worked with for a long time, weโve had an opportunity to display our character and our good intentions.โ
Related: Binance’s FTX acquisition seen as chess move by crypto community
Shkreli considered the current situation a low point, saying:
โIf the entire banking system got drunk or high or something, this is how it would operate, right? You have real adults in the room in real banking and maybe thatโs because of regulators and maybe itโs not.โ
Shkreli added, taking a poke at Binance by repeating an unfounded rumor, โThe biggest problem is that we donโt know what Binanceโs balance sheet is. Why are we trusting these guys? [โฆ] Itโs a CCP appendage.โย
– FTX secretly insolvent
– BTC testing new lows
– Alameda toast
– Binance planning to acquire FTX
– FTT down 80% headed to 0
– CZ announces proof of reserves
– Su Zhu re-emerges
– Do Kwon and Martin Shkreli on UpOnly
– Coinbase temporarily downHow was your day at the office?
โ Yassine Elmandjra (@yassineARK) November 8, 2022
Shkreli was sympathetic to Kwon, however, telling him:
โI just want to let you know jailโs not that bad, itโs not the worst thing ever, so donโt fret. I hope it doesnโt happen. But if it does happen, itโs not that bad.โ
โGood to know,โ Kwon replied, even though he started his conversation on the podcast by saying โI donโt think Iโm on the run.โ He did not disclose his whereabouts.
