Broken-down FTX CEO Sam Bankman-Fried defended Alameda’s employ of FTX’s native token FTT as collateral, saying it was as soon as “more legit” than most tokens

In an audio interview with Celsius creditor Tiffany Fong on Tuesday, Bankman-Fried addressed Alameda’s margin situation on FTX and the occasions main as much as the alternate’s insolvency.

Bankman-Fried acknowledged he believes FTT had true fee and has more fee than somewhat about a tokens with sizeable market capitalizations.

“I mediate FTT was as soon as in overall more legit than most tokens in many programs. I mediate its fee is more economically underpinned than the common token was as soon as,” he acknowledged.

When asked why he felt that come, Bankman-Fried acknowledged that FTT’s buy and burn mechanism makes it a token that “on the very least does one thing.” Per him, a appreciable amount of cash waft went through it and it had utility.

He went on to check FTT with “token number 17” on CoinMarketCap, saying that he suspects that token does loads lower than FTT does.

“Alameda held somewhat about a it [FTT]. It didn’t withhold all of it. Half of it was as soon as excellent fully free-floating,” acknowledged Bankman-Fried.

In his gape, FTT’s illiquidity wasn’t what led to its market cap to break down from $8 billion last month to $500 million as of late. He acknowledged that the big correlation of things being held by the identical entity all the scheme through a free market pass was as soon as what led to the implosion.

“In this particular scenario, where you would possibly perhaps perchance possess a disaster of self perception in that entity, blended with a run on the monetary institution and a total lack of liquidity and credit ranking, where the break would possibly perhaps perchance be extremely correlated between all these resources, [the crash was] extremely worthy and intensely immediate,” he acknowledged.