• 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

Challenges and Opportunities for Pumpfun in the DeFi Space

chest

Pumpfun faces both challenges and opportunities as it seeks to expand its role in the decentralized finance ecosystem.

user avatarKofi Adjeman

Exploring the High-Yield Bond Market: Risks and Rewards

chest

High-yield bonds, often called junk bonds, are issued by companies with credit ratings below investment grade, indicating higher default risk and offering higher interest rates to attract investors.

user avatarNguyen Van Long

Key Principles for Navigating High-Yield Corporate Bonds

chest

Sophisticated investors are increasingly adopting rigorous methodologies to navigate the complex landscape of high-yield corporate bonds.

user avatarSatoshi Nakamura

Join the BDX Futures Trading Campaign on KuCoin for a Chance to Win 100,000 BDX

chest

Join the BDX Futures Trading Campaign on KuCoin for a Chance to Win 100,000 BDX

user avatarLucas Weissmann

Beldex Expands Trading Options with BDXUSDT Futures on KuCoin

chest

Beldex has launched its BDXUSDT trading pair on KuCoin Futures, enhancing market presence and allowing users to trade BDX with leverage.

user avatarRajesh Kumar

XRP's Daily Transaction Fees Plummet to Record Low

chest

XRP's daily transaction fees have plummeted by 89% to 650 XRP, the lowest since December 2020, indicating a potential decline in network activity.

user avatarJesper Sørensen

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.