3 Things That Can Destroy Crypto Exchange Named by SEC Chair, FTX as Example

Nov 11,2022
3 Things That Can Destroy Crypto Exchange Named by SEC Chair, FTX as Example

In the recent Squawk Box program of CNBC, Gary Gensler, the CEO of SEC, was affected by the investigation and analysis of FTX situation by the relevant institution.

He named it Three Stones, which can drag the cryptocurrency trading center to the bottom and destroy it.

According to Gensler, three things destroyed FTX

Gary Gensler reminded Andrew Sorkin, the host of the program, that he could not reveal the SEC's current investigation and analysis of FTX. But he shared some other interesting things.

He reminded Suo Jin that Terra Luna and several data encryption borrowing platforms had failed, compared FTX to such platforms, and said that they were related to each other.

In his view, the miserable situation of FTX is as old as that of the financial industry. It can be summarized into three things - "a lot of customer assets", "information confidentiality" and "leverage", because FTX borrowed money from customers.

Gensler said that there are some intensive participants in the data encryption industry, and FTX is one of them. When they and their tokens gradually move down, the encrypted space gets an electric shock. BTC fell below 18000 US dollars, which is one of the adverse effects. In addition, many investors not only lost money on FTT tokens, but also on other cryptocurrencies with declining prices.

All in all, Gessler showed that investors must maintain more than before.