Sam Bankman-Fried is a ‘Terrible Trader’ Slams Ripple CTO, David Schwartz

Sam Bankman-Fried is a ‘Terrible Trader’ Slams Ripple CTO, David Schwartz

Sam Bankman-Fried, the founder of FTX, was criticized on Twitter by David Schwartz, the chief technology officer of Ripple, who claimed that SBF has always been taking a significant directional risk.

“I keep hearing people describe SBF as a “great trader”. Is that really true? Everyone in the space made money during the massive bull run, at the same time Sam did. And when things went bad, his trades massively blew up. Maybe he was just taking the massive directional risk all along.”

He said that SBF was a poor trader and compared the situation to that of Celsius. As per David, Celsius did the same thing: they set up the situation so that they receive the majority of the profits, and if the small risks of massive losses materialize, they shift those losses to people who were unaware of the risks they were taking.

Additionally, he singled out SBF and took a dig at the claims that he forgot how much leverage he had and how much risk he was taking. If such is the case, he is a terrible trader since knowing how much and what kind of risk you are taking is the most crucial trading ability, according to him. 

“FWIW, I think it’s more likely that he wasn’t taking large directional bets all along. I think I was able to capitalize on inefficiencies in the markets to make outsized profits at first. But when those dried up, he kept the profits coming by increasing leverage and risk.”

After a quick fall and collapse, FTX filed for Chapter 11 bankruptcy protection on November 11, 2022. Sam Bankman-Fried, the company’s founder and CEO, saw his $16 billion net worth drop to almost nothing as the company’s valuation plummeted from $32 billion to bankruptcy in a couple of days.

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Written by: Delma Wilson


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