Solend (SLND) founder 0xrooter has described FTX founder Sam Bankman-Fried as a “revenue maxi” who desires to “revenue in any respect prices.”
SBF is a revenue maxi: revenue in any respect prices
— 🙏🚫 Rooter (hiring!) (@0xrooter) October 24, 2022
In line with Rooter, an organization’s motion displays its founder’s character. Whereas he has by no means had any private interplay with SBF, he believes his expertise with one of many corporations owned by the crypto billionaire offers him an concept of what to anticipate.
Solend founder describes Alameda’s ‘perplexing habits’ throughout IDO
Rooter said his expertise with Bankman-Fried-owned Alameda Analysis through the preliminary dex providing (IDO) for Solend.
In line with him, Alameda had participated in Solend’s seed spherical –an motion he had interpreted meant they needed to assist the Solana-based lending protocol. Nonetheless, the buying and selling agency carried out a sequence of “perplexing habits” to stunt the expansion of the protocol.
Rooter continued that on the cusp of Solend’s preliminary dex providing (IDO), he realized that over $100 million had been raised by the protocol, which made its absolutely diluted worth (FDV) nearly the identical as storied DeFi protocol Aave.
rewind to solend’s IDO in nov 2021. after a sleepless night time, the IDO website was launched. I stepped away to atone for sleep, and upon waking up discovered that >$100M was contributed to the IDO. the implied FDV was inflated to >$2.5B, undeservedly rivalling aave on the time.
— 🙏🚫 Rooter (hiring!) (@0xrooter) October 24, 2022
However Solend used a mango-style IDO which allowed customers to deposit or withdraw on the primary day after which solely withdraw on the second. On the second day, only a few minutes earlier than the IDO ended, $80 million was pulled out of the protocol, which meant it raised solely $26 million.
The Solend founder said that on-chain information revealed that Alameda Analysis managed the 2 accounts that originally deposited $40 million every and eliminated $80 million on the final minute.
Alameda’s transfer successfully meant it bought a greater worth for the tokens because the initially excessive FDV would have scared different buyers from investing within the protocol. Rooter continued that these actions “make sense if you happen to do not forget that Alameda is a revenue maxi hedge fund (simply larping as VC as a result of it’s profitable).”
Rooter mentioned:
“Alameda’s actions replicate SBF’s ideology. revenue absolves all sins. the ends justify the means. efficient altruism.”
Crypto neighborhood turns into important of SBF
In the meantime, the Solend founder is the most recent crypto neighborhood member to turn into important of Sam Bankman-Fried. A number of neighborhood members have accused the crypto billionaire and his companies of not protecting the neighborhood’s finest pursuits in thoughts.
SBF just lately wrote his ideas on crypto rules, which many criticized severely.
Ryan Sean Adams mentioned the suggestions “completely suck” because it proposes DeFi to turn into OFAC-compliant, amongst different points.
Sam.
With respect.
This positively sucks.
You are saying DeFi needs to be OFACed.
You are saying onchain freeze’s needs to be regular.
You are saying DeFi front-ends to register as a broker-dealer.
No, this isn’t affordable.
This may remove the U.S. from the crypto race. pic.twitter.com/AtlvHgaAkL
— RYAN SΞAN ADAMS 🤓 (@RyanSAdams) October 19, 2022
Some imagine SBF is barely making an attempt to keep up the aggressive benefit of FTX and centralized exchanges whereas making it inconceivable for others to compete.
Founding father of ShapeShift Erik Voorhees additionally revealed a full response to the coverage the place he countered a number of factors, particularly requires crypto to be OFAC compliant.
