Dramatic collapse of the cryptocurrency exchange FTX contains lessons for investors but won’t affect most people
theconversation.comIn the fast-paced world of cryptocurrency, vast sums of money can be made or lost in the blink of an eye. In early November 2022, the second-largest cryptocurrency exchange, FTX, was valued at more than US$30 billion.
By Nov. 14, FTX was in bankruptcy proceedings along with more than 100 companies connected to it. D. Brian Blank and Brandy Hadley are professors who study finance, investing and fintech.
They explain how and why this incredible collapse happened, what effect it might have on the traditional financial sector and whether you need to care if you don’t own any cryptocurrency.
In 2019, Sam Bankman-Fried founded FTX, a company that ran one of the largest cryptocurrency exchanges. FTX is where many crypto investors trade and hold their cryptocurrency, similar to the New York Stock Exchange for stocks.
