• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

FTX Collapse and Its Impact on the Crypto Market

user avatar

by Giorgi Kostiuk

8 months ago

In late 2022, the rapid collapse of FTX, once a leading crypto exchange, shocked the entire digital currency sector.

FTX's Rise

Founded by Sam Bankman-Fried in 2019, FTX quickly became one of the most renowned crypto exchanges due to aggressive marketing and unique financial products. The platform was known for its innovative products, low fees, and user-friendliness.

Crisis Emergence

In November 2022, a leaked balance sheet from Alameda Research, FTX's sister firm, revealed that much of its assets were concentrated in FTX's native token (FTT). This sparked concerns about liquidity and the interdependence between FTX and Alameda.

Collapse and Its Impact

The announcement by Binance's CEO about liquidating its FTT holdings caused panic. FTX suspended withdrawals and filed for Chapter 11 bankruptcy. Investigations revealed FTX had used billions in customer funds to cover Alameda's losses. The founder of FTX was charged with fraud, money laundering, and conspiracy.

The collapse of FTX became a significant event in crypto history, highlighting trust issues and the risks of centralization in a decentralized world.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

China's Cryptocurrency Market Shows Signs of Retreat

chest

Traders in China are retreating from the cryptocurrency market as stablecoins trade below parity against the local currency.

user avatarSon Min-ho

Bitcoin Addresses Holding Over 0.1 BTC Decline for the First Time Since 2009

chest

The number of Bitcoin addresses holding more than 0.1 BTC has declined by 2.3% for the first time since 2009, reflecting changes in investor behavior and infrastructure.

user avatarAyman Ben Youssef

Volatility Indicators Suggest Bitcoin Has Not Yet Hit Bottom

chest

Current volatility fractals indicate that Bitcoin is not at its bottom yet, suggesting further accumulation and potential rallying environments.

user avatarAisha Farooq

Increased Whale Activity Influences Solana Market Dynamics

chest

Increased whale activity has led to over 600,000 SOL being transferred to exchanges, affecting market sentiment and resistance levels.

user avatarTando Nkube

Seven Essential Principles for Trading Success in Australia

chest

Traders in the Australian derivatives market must master seven essential principles to achieve longevity and profitability.

user avatarNguyen Van Long

Navigating the Complexities of the Australian Derivatives Market

chest

The Australian derivatives market, primarily centered on ASX 24, is a high-stakes arena where volatility, leverage, and regulatory complexity converge.

user avatarKofi Adjeman

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.