'Black Swan' Author Nassim Nicholas Taleb Says FTX Isn't Going Through A 'Liquidity' Crisis — Wait, What?

"Black Swan" author Nassim Nicholas Taleb commented on the nature of the crisis affecting cryptocurrencies in the wake of FTX's liquidity issues.

What Happened: "There is no such thing as a “liquidity” crisis with cryptos. A liquidity crisis is for something that has some hard intrinsic value. This is just a crisis," said the author on Twitter.

Taleb tweeted "Epilogue" in response to a tweet on Monday that labeled the liquidity shock a "true black swan event." The Epilogue is a reference to a September tweet featuring a picture of a co-passenger on a flight who was sporting Bitcoin and cryptocurrency tattoos.

See Also: eToro vs. Binance — Which Platform Is Better?

Why It Matters: Taleb's comments were made in the wake of the FTX liquidity crisis that led to a massive crash in the price of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) as well as other cryptocurrencies.

The Sam Bankman-Fried-led FTX asked rival Binance for help and later the leaders of the two exchanges announced that FTX would be acquired by Binance, a company led by Changpeng Zhao.

"There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch," said Zhao.

Read Next: FTX (FTT) Crisis Is Crypto’s ‘Lehman Brothers’ Moment: Circle CEO Jeremy Allaire

Photo: Salzburg Global Seminar on Flickr