Sam Bankman-Fried, CEO and founder of FTX, describes what happened between the Subreddit Wall Street Bets and hedge funds around the stock of GameStop this week. In this episode, he covers:

  • what happened with the stock of video game retailer GameStop this week
  • what that says about how to value a stock
  • how the traditional financial establishment reacted
  • how the events in GameStop this week are similar to the way crypto markets operate
  • how a crypto financial system could affect the ability of investors to do what the hedge funds did with GameStop — shorting more shares of the stock than actually exist
  • what led to FTX listing for tokenized versions of GameStop, Blackberry, AMC and Nokia, as well as a tokenized index fund of Wall Street Bets stocks
  • how the tokenized stocks and index work on the back end
  • why Robinhood restricted customers from purchasing shares in GameStop on Thursday
  • what the inspiration was for FTX

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The Sun Exchange:

Episode links:

Sam Bankman-Fried:



Roundups of what happened with Gamestop: 



Early Wired story:

NYT analysis:

Sam on what can determine an asset’s price:

Chamath Palihapitiya on CNBC discussing Gamestop — defending individual investors:


Gamestop price gyrations: 

How many shares of GME are shorted:

FTX lists GME for tokenized spot and futures trading:

FTX’s Wall Street Bets tokenized index fund:

Robinhood customers only being able to sell, not buy GME when Robinhood’s revenue biggest revenue source is sending order flow to hedge funds:

Matt Levine of Bloomberg on GameStop:

Link to the Crypto News Recap: