According to Belfort, after observing the conduct of FTX’s former CEO, he believes the collapse was likely premeditated, he said during an interview with Fox News on November 17. At the same time, Belfort labeled Bankman-Fried as a sociopath as he faces allegations of misappropriation of customer funds while warning that the FTX business model might have been a pump and dump scheme.
FTX’s frat house comparison
Interestingly, Belfort termed FTX’s business model as a ‘frat house’ while questioning why backers of the exchange had failed to see any warning signs. Furthermore, Belfort suggested that all Bankman-Fried decisions can be equated to insanity while challenging regulators to focus on customers who lost money in the exchange’s collapse.
Implications on the general market
Indeed the FTX collapse has resulted in a widespread market correction, with most assets losing a significant share of their value. Notably, the incident has extended the crypto bear market. In this line, Belfort had previously highlighted several tips to survive the crypto winter. As reported by Finbold, Belfort recommended having a three to four years horizon for assets like Bitcoin (BTC), investing in Bitcoin and Ethereum (ETH) only, and not playing into the panic and selling. Interestingly, the market downturn has impacted investors in different aspects. For instance, following the FTX collapse, owners of the exchange’s native token, FTT, have emerged as the most stressed. Elsewhere, Dogecoin (DOGE) holders rank among the least stressed crypto investors.
