Bitpanda’s Post

𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀: 𝗗𝗼 𝘁𝗵𝗶𝘀 👇🏼 𝗼𝗿 𝙁𝘼𝙄𝙇 𝗹𝗶𝗸𝗲 𝗙𝗧𝗫. The downfall of FTX and SBF was well documented. We (the tech community) haven't learned from the FTX failure yet. As a startup, they were able to raise immense capital, scale users globally, and create revenue. What they didn't do defines a successful startup and founder. FTX failed to build a business. Their lack of processes, framework, and (compliance/regulatory/etc.) demonstrated the most basic job of the startup founder. A founder's core function is to 𝘣𝘶𝘪𝘭𝘥 𝘢 𝘷𝘪𝘢𝘣𝘭𝘦 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘶𝘯𝘪𝘵 𝘵𝘩𝘢𝘵 c𝘳𝘦𝘢𝘵𝘦s 𝘢𝘯 𝘦𝘹𝘪𝘵. How do we do that? First, we develop traction and then document the process. We use automation and labor to scale a process into a department. We document the process framework (strategy, guidelines). We scale by reinvesting profits and raising capital. It's time we stop glorifying product success and respect the business builders driving to exits for their investors.

The FTX crash led me to starting a multi 6 figure agency. Seems totally unrelated but I promise there's a lesson in here (especially if you run an agency). Back when crypto and DeFi was as hot as A.I is right now, I joined Fragmynt as a co-founder. A startup in the DeFi tech space. We went through 2 of the biggest accelerators in Europe and raised close to $1M. As we were about to raise the next round at $3M, the FTX crash happened, and the business was no more. The tech space is high risk, high reward. So I thought I'd then try something with a higher likelihood of success, and got into the agency space. Through raising money, I learnt to effectively convey the value of what I sold. I.E: creating offers. A skill that many agency owners still don't have, and struggle to scale because of it. Now after helping 75 agencies scale at Avalanche, I've developed a foolproof method for creating offers, capturing attention and closing high-ticket deals. Just comment "scale" and I'll send you a video breakdown of how we do it.

The story of FTX is so wild it's hard to believe it's not science fiction 😳 It's worse than Enron, Madoff, and Theranos. Combined: The company raised $1.8 billion from outside investors. Yet, they managed to spend $2.1B to buy back a fraction of the company from Binance. Then they invested $500 million into Anthropic, one of the leading AI startups right now. On top of that, founder Sam Bankman-Fried and other executives stole $7.7 billion in customer funds. This brazen theft financed luxury lifestyles, risky investments, and political fortunes: - Over $5B went into speculative venture capital deals that have since collapsed in value. - At least $2.2B enriched insiders directly. - They bought real estate worth close to $250M. - Spent millions sponsoring celebrities and more! If Pixar ever decides to make a movie about FTX, this would easily be their biggest movie ever.

😂 This post had me chuckling! But on a serious note, FTX isn't the only concern here. It boggles my mind how seasoned investors with entire teams can pour money into such a mess. It reminds me of the Wirecard situation. It's astonishing how easily people can be deceived. The blockchain sector has its fair share of scammy companies, and it's high time for thorough due diligence! #BlockchainScams #InvestorAlert #DueDiligenceMatters #FTXFiasco #WakeUpCall

Startups' Most Notorious Scandals -- Sam Friedman & FTX (Founded in 2017) - Surprisingly, Sam started FTX to make money and help others. The company peaked at $32Bn. Problems arose when he reportedly used FTX's money for another project, Alameda Research, run by a young and inexperienced team. This led FTX to declare bankruptcy. -- Trevor Milton & Nikola Motors (Founded in 2014) - Nikola had big plans with hydrogen trucks and soared to a $34Bn valuation. Doubts grew after claims of misleading actions. A particularly damning allegation was the claim that a prototype truck, showcased in a promotional video, wasn't self-propelled but simply rolling downhill. -- Elizabeth Holmes & Theranos (2003-2018) - Peaking at $9Bn, Theranos promised tests from a few blood drops. However, it emerged that their technology was faulty and often relied on standard machines. This deception led to a massive fallout for Holmes and her company. -- Charlie Javice & Frank (2016-2021) - Aspiring to redefine educational financing, Frank was snapped up by JP Morgan for $175 million. Later, Javice was embroiled in a scandal over inflating user data, claiming 4 million users against an actual 300k. Credits to my recent YouTube feed. 👍 #startups #enterpreneur #technology

🚀 Crypto Legends Live, with help from Adan & Coinhouse, is back tomorrow in Paris! The exclusive event, hosted at the stunning Le Centorial, will feature two insightful discussions from industry leaders at Bitpanda, Coinhouse, Finary, Fipto, Adan, RegSharp, Atlendis Labs & Binance France. Here are the two topics of discussion you can look forward to: 1) Regarding crypto, how does Europe differentiate itself from its peers on the regulatory front? With Guillaume Massoud, Legal & Regulatory Consultant, Regsharp, Bruno Pousset, General Counsel, Atlendis Labs, Faustine Fleuret, President and CEO, Adan & Stéphanie Cabossioras, Executive Director, Binance France. 2) Bringing crypto to the mainstream with Wolf-Alexis Puttfarken, Director Sales France and Benelux, Bitpanda, Mounir Laggoune, CEO, Finary,  Nicolas Louvet, CEO, Coinhouse & Bertrand GODIN, Co-founder and COO, Fipto. We can't wait to see you there! 🛥️🏰

The story of FTX is so wild it's hard to believe it's not science fiction 😳 It's worse than Enron, Madoff, and Theranos. Combined: The company raised $1.8 billion from outside investors. Yet, they managed to spend $2.1B to buy back a fraction of the company from Binance. Then they invested $500 million into Anthropic, one of the leading AI startups right now. On top of that, founder Sam Bankman-Fried and other executives stole $7.7 billion in customer funds. This brazen theft financed luxury lifestyles, risky investments, and political fortunes: - Over $5B went into speculative venture capital deals that have since collapsed in value. - At least $2.2B enriched insiders directly. - They bought real estate worth close to $250M. - Spent millions sponsoring celebrities and more! If Pixar ever decides to make a movie about FTX, this would easily be their biggest movie ever.

Forbes under 30

Nice Pixar wish! Perhaps titled ”The Fool and his Money.” The Michael Lewis (fan fav!) book should be spectacular. Linas can you even believe this actually happened in modern times, during our lifetime? Business history. #ftx #duediligence #accountability #investing #fraud