The cryptocurrency exchange FTX skyrocketed its value to a $32 billion company at its peak, but now its value went back to nothing.
What has happened in a week of the FTX crisis?
Coindesk, a crypto news service, broke the news that Alameda’s balance sheet has great hidden dangers, and most of its total assets of 14.6 billion seems to be its native token, FTT. This is the beginning trigger of the crisis.
FTX was originally expected to be acquired by Binance, but Binance pointed out that the problem was beyond its control and abandoned the acquisition agreement. Then, FTT started to drop dramatically, and the situation spread over to other cryptocurrencies! One of the biggest reasons behind the crisis is that FTX used the FTT token it created as collateral, which increased the company’s risk and leverage.
What might be next for the crypto ecosystem? Regulation is the key!
Blockchain technology is regarded as a tool for liberation by believers, however, strengthening supervision and regulation within the industry is the priority now. For example, the CEO of Coinbase said that the FTX incident will lead to stricter supervision of the cryptocurrency industry in the United States. Only in this way can the interests of investors be protected to the greatest extent.
Keen to learn more about the FTX crisis and cryptocurrencies investment?
It’s important to catch the news before making any investment decision. The FTX crisis of cryptocurrencies is complicated, and you might be curious about the impact on the crypto ecosystem. Though there are limited resources online, the good news is you can learn about everything in terms of Crypto exchanges, key crypto players, and reasons behind the FTX crisis with CFTE’s THINK platform! Learn everything about what has happened to FTX with Huy Trieu Nguyen, Co-founder of CFTE. Why not start the course now?