Market Extra: FTX’s stunning collapse nothing like Theranos, says venture investor and crypto bull Tim Draper: ‘This is about people who got ahead of their skis’

by | Nov 11, 2022 | Stock Market

Tim Draper, founder and managing partner of Draper Associates and Draper University, balked at comparing the stunning implosion of crypto trading platform FTX to the notorious biotech startup Theranos, in a conversation with MarketWatch. “It’s not like Theranos,” he said. In a Friday phone interview, Draper said he hadn’t been aware of anyone genuinely comparing the downfall of the embattled FTX, which filed for bankruptcy protection on Friday, with Theranos.

FTX founder Sam Bankman-Fried, the now-former CEO of the platform and its associated companies, was facing an $8 billion shortfall, The Wall Street Journal reported. However, some have been drawing such comparisons, including Galaxy Digital
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CEO Mike Novogratz in an interview with CNBC: “You know, we basically have a situation that looks like Theranos,” he said on the business network on Thursday. “I’m furious,” Novogratz said, referring to how FTX’s capsizing hurts confidence in the nascent crypto market, with bitcoin
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the progenitor of the current crypto, forming in the wake of the 2008-2009 financial crisis.

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