What is the impact of FTX on cryptocurrency?

FTX's collapse shook the volatile crypto market, which lost billions in value, dropping below $1 trillion. The consequences of FTX's rapid decline and collapse will likely impact cryptocurrencies well into the future and drag down broader markets.

What is the current status of FTX?

FTX is currently teetering toward bankruptcy. The owner of the company, Sam Bankman-Fried, acknowledged the possible implosion of the company.

What caused the FTX Trading meltdown?

It claimed that the balance sheet of Alameda, a crypto hedge fund owned by FTX’s founder, Sam Bankman-Fried, held billions of dollars worth of FTX’s own cryptocurrency, FTT, and had been using it as collateral in further loans. If this were the case, then a fall in FTT’s value could damage both businesses, given their shared ownership.

What is the FTX crypto exchange?

FTX is an online digital exchange for cryptocurrency and crypto derivatives. It is designed to support the trading of BTC options and other popular crypto derivatives. FTX helps gain access to the best spot trading practices and enables fund transfers via fiat and stable cryptocurrencies, such as Ethereum, Bitcoin, and Litecoin.