The Rise and Fall of FTX

Abstract


Lin William Cong* and Jingtao Zheng

The abrupt downfall of Futures Exchange (FTX) has sent shockwaves throughout the cryptocurrency industry. In this case report, we delve into the causes and consequences of the crisis at the FTX exchange, examining the precarious relationship with Alameda that sowed the seeds of danger. The extensive lending of money to Alameda, using FTX’s own token as collateral, gave rise to a death spiral, a destructive interplay between FTX’s assets and liabilities. While the repercussions of the event extended to other crypto related entities, the fallout was predominantly contained within the crypto sector. We conclude with a discussion on the future regulatory landscape and its implications for the industry.

Share this article

Awards Nomination

Select your language of interest to view the total content in your interested language

Indexed In
  • Index Copernicus
  • Academic Keys
  • CiteFactor
  • Open Academic Journals Index (OAJI)
  • Electronic Journals Library
  • Advanced Science Index
  • Scientific Indexing Services (SIS)
  • Leipzig University Library
  • GEOMAR Library Ocean Research Information Access
  • Bibliothekssystem Universit├Ąt Hamburg
  • Eurasian Scientific Journal Index
  • Academic Resource Index