Several Crypto Exchanges Are “Secretly Insolvent”, Says FTX’s Bankman-Fried

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“There are companies that are basically too far gone and it’s not practical to backstop them for reasons like a substantial hole in the balance sheet, regulatory issues or that there is not much of a business left to be saved,” he said Tuesday, without naming any specific companies.

Bankman’s comments aren’t the first. Mark Cuban previously described the current crypto slide as echoing the early 2000s dot-com bubble, when speculative investing inflated the valuations of internet-based companies over a 5-year span before a steep crash in 2001 and 2002.

“Crypto is going through the lull that the early internet went through,” Cuban said. The space is currently stuck in an “imitation phase” where there are too many companies with too little new utility. Like Bankman-Fried, he predicted that more companies will fail.

“The chains that copy what everyone else has, will fail,” Cuban tweeted.