The Definition of Insanity: FTX’s Sam Bankman-Fried (SBF) Now Wants to Double Down on “Ponzinomics” To Save His Skin

For those who haven’t heard of Sam Bankman-Fried, he is the CEO and founder of FTX, an increasingly popular cryptocurrency exchange. The exchange has consistently been one of the fastest growing crypto platforms and is currently the fourth largest in terms of traded volume. However, Bankman-Fried’s recent decision to double down on a strategy deemed questionable by some in the crypto sphere has some questioning the sanity of his decision.

The strategy Bankman-Fried is referring to is one that has been coined “Ponzinomics.” This involves FTX’s use of wash trading, a practice which is generally looked down upon in the industry, but Bankman-Fried claims that it is “investor protection.”

Bankman-Fried has stated that he believes wash trading is necessary to prevent market manipulation and to provide investors with a fair and transparent market. He has also argued that FTX’s wash trading practices are actually beneficial for traders since it helps increase the liquidity of the markets and can provide additional transparency.

The practice of wash trading is generally frowned upon by many large cryptocurrency exchanges, including Coinbase and Kraken, due to the possibility of market manipulation. The practice also creates more trading fees, something that Bankman-Fried claims is necessary in order to make the market more appealing to traders.

Therefore, the decision to double down on “Ponzinomics” might be seen as a desperate move by Bankman-Fried. He is gambling on the idea that he can make this controversial strategy work despite objections from the crypto industry. After all, if it fails, it could mean disastrous consequences for his reputation and his company.

At this point, it is too soon to tell whether or not Bankman-Fried’s risky decision to double down on “Ponzinomics” will pay off for FTX. The skeptics are already out in full force, and there are certainly no guarantees that it will succeed. Nevertheless, it will certainly be a fascinating story to follow as the crypto industry continues to grow and evolve.