FTX.com Alters Settlement Terms of Election Futures Contract 100% PROOF

I have had no axe to grind with FTX until now. They are supposed to be a futures platform, however, it appears that they are willing to ex-post-facto arbitrarily alter the settlement terms of their futures products. This has bad implications for them and shows a short shortsightedness that somewhat boggles the mind since issuing futures products fundamentally depends on confidence that the institution will make good on the contract based on the original terms of the contract in the future. Here’s what went down.

Prior to the 2020 US elections FTX created the President2020 futures contracts. This featured such products as TRUMP, BIDEN, shortBiden and also some derivatives in the form of ERC20 tokens called TRUMPWIN and TRUMPLOSE which potentially allowed trading outside of FTX. FTX published the rules of how the contract/token’s final value of $1 or $0 would be paid out via their blog.

Sometime on 11/7/2020 FTX suspended trading on their platform for President2020 futures contracts as well as TRUMPWIN and TRUMPLOSE ERC20 tokens citing that Biden had been declared the victor of the US presidential race by media outlets as laid out in the rules so the contracts would then pay out accordingly. However in their original rules they stated that if there was no clear winner by November 5th 2020 the…