Too big to fail? What the FTX collapse means for crypto exchanges
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- čas přidán 18. 12. 2022
- The crypto industry has been rocked by the collapse of FTX. Big-name investors from Sequoia Capital to SoftBank dumped hundreds of millions of dollars into the company, making bets that are now worthless.
Countless individual traders were hit by huge losses, too. Regulators are investigating claims that customer funds were misappropriated by FTX and its trading affiliate Alameda Research.
It marks one of the most serious problems for crypto to date, with questions rising about the health of other industry giants such as Binance and Crypto.com.
Contagion from the debacle is already playing out, with crypto lender BlockFi now seeking bankruptcy protection after revealing lending exposure to FTX and Alameda.
“I don’t think all the dominoes have fallen out from the contagion,” says Marieke Flament, CEO of the Near Foundation, which took investment from FTX. “The impact that this will have is that a lot of projects actually are not going to have the funds, and therefore the resources, for them to continue and develop.”
Investors are yanking their coins from exchanges to avoid getting caught in the fallout. Total bitcoin balances on exchanges fell from a peak of 3.1 million in 2020 to around 2.2 million at the end of 2022.
“Nothing’s too big to fail,” says Ian Rogers, chief experience officer of crypto security firm Ledger.
Is it time to abandon crypto exchanges, or is there still a place for centralized firms in an industry that prides itself on decentralization? Watch the video to find out.
#CNBC #CNBCExplains #SBF #FTX #CryptoExchange #SamBankmanFried #Binance
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in my opinion our time had reached its zenith, and it is now over. Everything not just FTX, Stock including 401Ks, are suffering from the recession and crashes. My $750K retirement equity portfolio is losing money. Because of inflation, I keep losing. Similar to how Rome fell under its despotic emperors, this world will also. I apologize if you are considering retirement but are concerned that your pension won't cover the rising expense of living. There are terrible foreign policies worldwide, as well as disastrous regulatory, fiscal, and energy policies.
I for one think it's especially difficult for people who are retired or about to retire. My apologies to everyone who retired during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for
@@alrikclemens Something vital I’ve learned from my first bear market: You don’t have to outperform, just survive. If you can survive and let your competitors blow up you’ll be the only one left and in a better position than before.
@@gabriodritan3562to me the first step is discovering loopholes to generate gains during volatility, It is very possible to retire big time from the current market condition without having to hold stocks long term.
@@gabriodritan3562 I strongly believe Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
@@gabriodritan3562 Very true! personally I've been able to scale from $350K to $650K this red season because my FA figured out Defensive strategies to protect my portfolio and profit from this roller coaster markt.
No. People willingly bought a lie. FTX had low fees and offered high interest. It was not sustainable. Everyone always talking smack about CB and others charging higher fees. Yeah! Because you want to be the customer, not the product
I'm 58 and my wife and I are VERY worried about our future with gas and food prices rising daily. We have had our savings dwindle with the cost of living in the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to those who retiring in this crisis, 40 years nonstop just for a crooked system takes to take all you worked for
No sympathy for investors. They put their money in unregulated currency. Play stupid games, win stupid prizes. Might as well be monopoly play money.
People using real money to buy imaginary money, what can go wrong
All monies imaginary since the idiots running the world started printing in 2008.
Lol your "real" money is just as imaginary......
@@marsenault9683 bingo
@@marsenault9683 I’d rather have my money backed by the United States government than backed by SBF.
@@nygeek6471 and you don’t have to “sell” your money in order to have it either.
Why would anyone exchange their money for nothing? Greed which rendered them irrational perhaps?
Depends on what you call money. After all, what is fiat but paper with a bunch of zeros printed on it.
All creeptos will crash within 6 months
@@gerby8 Care to wager some Etherium on that?
@@darkgalaxy5548 sorry I’m not a creepto lol
@@gerby8 Ah, come. Live a little. Have a bit of a flutter. YOLO!
Now we only hear disturbing news about Binance and it doesn't bother me much, I would be more stressed if I heard similar news about Bitfinex.
You can’t make money if you sell your customers nothing in exchange for their currency
Next after FTX will be Coinbase and Circle.
CB huge blackrock ownership....of Coinbase goes down you can then be assured this was all orchestrated by the elite to take control of a space that could land in obscurity
And binance
what about tether tho
I lost so much money in the FTX crash... But I will do my best to not let this happen again - this time I've done my research more carefully and found a much better option, Exex. Trading fees there are very low, around 0.05% and also there is no commission on withdrawals
Lies again? Serie A Leader Hello Tushy
Interesting Video, thanks for all the research
Thanks for the recap on how FTX collapsed and I'm shocked to see that even more companies are dragged down along with the recent crash. I'm gonna wait for SBF on the hearing as I stake PGEN and get into Polygen's tier levels for future raises on their flexible launchpad.
Guys do you know where I can buy the cold wallet they showed?
Unless it is FDIC protected, and regulated, it’s just gambling
Yep
😂....what you described is just a version regulated and controlled to be benefit the wealthy
It’s just gambling anyway as your token could drop significantly in value.
Who didn't see this coming? Money doesn't exist anyway. Life will always be about bartering of goods and services. Just a simplistic observation. But in another type of forum, we could go deeper
content suggestion - curate a playlist of all the fan chants/songs please! thank you!
I think that after the FTx collapse people will be more interested in what is happening behind the scenes. Some people are probably taking a look at the books.
And the guy still has 250 million for bail. And mommy and daddy signed. 😂😂😂😂😂
A lot your "wonderful" politicians in the Demoncrap party were in on it. Nothing will happen to him.
I never trusted FTX and other exchanges except Finex. I knew there was something wrong with FTX and Alameda.
They always did. That's why I hold only on Ownr wallet. It's much safier
Too big for CNBC to report it fairly
Too big to fail will always fail
Holding your cryptocurrency on a cold wallet is akin to stuffing your money into a matress.
Better question should be about the Dollar and the failing strategy worldwide to prop it up. The end of the fiat is near
if it sounds like a scam, talks like a scam, looks like a scam, its not a duck it is a ...
I mined some ETH with my GPU while I’m not using my PC. And when my friends ask me, what can it be used for, idk how to answer that 🤣🤣🤣
i wonder how NAS daily is feeling right now because he featured this crooked with zero research
Let me put this simple when you leverage aka gamble there isn't no such thing as to big to fail let that sinking you'll brains for a moment !
Cripto is like MLM , scams
The answer is revolution, we surely need that kinda big chance to bring better ecosystem for us
Sounds about right! Thats why it's time to make a move, XRD could be best answer we have today. Im sure it'll grow massively later
@@danielbarb Thats nice move to see you also eyeing XRD, I guess it's supposed to be on everyone's radar if wanna look for better DeFi protocol. No doubt!
@@danielbarb You look so sure, can you gimme the details?
@@mrmoon4795 I do agree with ya, Radix tries to give better user experience covering simplicity, security, scalability, etc. It can be seen from how Scrypto, Cerberus, and Radix Engine works
@@lilpedro8225 It's caused by Radix tech which better as L1, it can scale without limitationd which gonna help them to meet with many numbers of dApps running within network
Verus is the way!
Exchanges are the achileese Heel of digital currency
Digital currency is the achilles heel of itself lol
It will definitely get worst before it will ever get better.
You mean fiat money on a computer screen is not real ?? WWHHHHYYYYYEEEEEEE
It means money is to be returned to investors.
They just like to create disaster and then pass laws. Again and again.
it signals something about humanity and ....
Tip of the iceberg,
Still Bullishly SB
Lots of lessons to be learnt from this bubble.
high risk high reward eh?
It’s a waste of energy
How can smart people
Do such stupid things
SBF should be held accountable for any suicides that result from this historic debacle.
Cryptocurrency is the next big thing, this is the future! 🤣🤣🤣
Ada won’t survive.
All creeptos will collapse within 6 months mark my word
Care to bet on that?
@@darkgalaxy5548 lol better to withdraw all your hard earned money before its too late hurry hurry
A photo???? Are people really this gullible????🔍
SCORE 1 FOR THE WORLD BANK! THIS IS HOW THEY WORK!
These people have worked really hard to make this small house. I was still standing there thinking all this.Then someone came near me and said that a fight had started at such a place, that place was famous.
I said, ``How is this possible? He said that all this happened suddenly. You can go see for yourself.
When I saw it on TV , a fight had started there and that fight kept on spreading. And it became the cause for a huge calamity. I said that this just keeps on spreading. Those people who were working with me started to work even more. And they tell the people that all that is going to happen which Qasim saw in the dreams.
🌟Please find more about these important dreams of Muhammad Qasim. We are the last generation in this world.
It seems that only bitfinex could survive at this time, other exchanges are not so reliable
in other words do not get to near me because i am far away from the truth but remember the truth is out there somewhere over the rainbow
Sure
It's well already priced into the market. You guys just milk news and add your biased touch.
Maybe this guy gets away with crime
Could you please talk about AML200T it’s very strong and took off in short time thanks.
Late Stage Capitalism is fun
AMZ to the moon
A ponzi scheme at best
No
🎷🎉🎹🥁🎆
I hope it all collapses so greedy people can wake up
It should not be regulated.
BRO WHY ARE YOU NOT TALKING ABOUT AML200T
🙄
I didn't feel that the collapse of FTX somehow affected Bitfinex. My work on this exchange was not affected in any way.
We'll see about that. I don't mind to see the crash. I just hope I'll have a lot of USDT to buy more AML200T live presale.
😢
Marshmello Finance MARSH3 is gonna explode anytime soon 🔥
FTX was a democrat dark fund campaign. Didn’t FTX fall only days after the mid terms then come to find the democrats got about 1billion from them. Haha let me guess that’s a “right wing” conspiracy?! 😂
They will all fall soon