FTX’s SBF Is Short-selling? Why CREAM Votes on De-listing FTT?

By October 12, 2020DApps
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If you are a crypto enthusiast, you won’t be strange to Sam Bankman Fried, the CEO of the crypto derivatives exchange FTX. He is also the man who has saved SushiSwap from the storm last month. As a well-known figure in the Blockchain industry, he seems to have built a good reputation and avoid this kind of binary labeling.

However, recently, his actions in several DeFi protocols have received the public’s attention, and especially raised people’s concern about FTT token, the native token of FTX. Because $80M worth of FTT tokens are used as collateral in Cream Finance.

Spend a few minutes to investigate this address: 0x477573f212A7bdD5F7C12889bd1ad0aA44fb82aa, you will find over $84M worth of tokens, mainly FTT and SUSHI, are used as collateral, which are used to borrow the tokens below:

Meanwhile, many YFI debts are borrowed and returned to Cream Finance, as well as borrowed from Aave using another address. It seems that SBF borrowed YFI, then transferred it to sell in Huobi and Binance, which destroyed YFI price. Besides YFI, the same happens to UNI, LINK and CRV.

FTT tokens are used as collateral for short-selling other cryptocurrencies.

This has triggered many discussions on Twitter.

It also upsets the community, as SBF is not only shorting YFI tokens, but also shorts other decentralized cryptocurrencies using the centralized tokens that’s issued by himself.

DeFi and Dex are supposed to be decentralized and free from the whale’s control. What’s the difference between Dex and Cex? Insights: https://www.dapp.com/article/difference-between-decentralized-exchange-and-centralized-exchange.

Most of the DEX transaction volume dropped recently.

On 9th Oct, a governance snapshot vote was called to decide if FTT should be delisted from Cream Finance.

The vote will last until 14th Oct. Let’s wait and see how it turns out.

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