The bankruptcy of FTX Derivatives Exchange, the once crypto behemoth valued at about $32 billion, has served as a reference point for many to look at and engage with the industry with extreme caution.
Last week, FTX still appeared normal despite revelations about inconsistencies in the balance sheet of its sister trading firm Alameda Research.
The journey toward the bankruptcy of FTX Derivatives Exchange did not prepare anyone, and as such, it caught many unaware. While we are still in the early stages of the proceedings, we are bound to see the ripple effect of these slumps over time.
FTX occupied a very pivotal position in the digital currency ecosystem, coming off as the lender of last resort to distressed firms in the entire course of the crypto winter and as an investor. FTX has investments in over 200 companies, all of which were listed in its bankruptcy filing.
While the collapse of FTX came off as a wildly shocking one,…
