FTX Pain Is Bitcoin's Gain

Vincent Ventures profile picture
Vincent Ventures


  • Do you like Bitcoins and ham? We explore one SA reader's foray into Bitcoin poetry. (Future NFT project anyone???).
  • FTX had a $1.4B short position in Bitcoin, suppressing the price.
  • In 2017, there were many cryptocurrencies with distinct advantages to Bitcoin. Those advantages proved to be marginal in the long run. Those projects are now largely irrelevant.
  • The same pattern is likely to repeat itself. Bitcoin may reap the benefits of the blockbuster R&D funding that has occurred over the last two years.
  • In other words, hot air rushing out of the cryptocurrency ecosystem should refocus developer activity on Bitcoin. Centralized exchanges, such as FTX, were an impediment to progress.

Bitcoin resuscitation. Pump connected to inflating balloon. Illustration.

LoopAll/iStock via Getty Images


The collapse of FTX has left many people with the impression that "cryptocurrency is a scam". People who have dug their heals in on this issue now have reason to feel vindicated. Here is a witty little poem





A snapshot of the ten largest cryptocurrencies in May 2017

A snapshot of the ten largest cryptocurrencies in May 2017 (CoinDesk)

This article was written by

Vincent Ventures profile picture
Former hedge fund analyst. My experience ranges from public markets to venture capital. I have conducted over $250M in VC transactions, and pioneered some of the first institutional investments in cryptocurrency. I focus on the intersection of technology and business, drawing on the evolution of various industries for relevant insights. These are my personal thoughts and not investment advice.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am an investor in cryptocurrencies, including bitcoin, Algorand, Ethereum, and Hedera.

Recommended For You

Comments (101)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.