Cryptocurrency Q&A
Why did FTX crash?
Why did FTX crash?
Elena
Sun Nov 24 2024
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6 answers
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I'm really confused about why FTX, which was once a leading cryptocurrency exchange, suddenly crashed. I want to understand the reasons behind this fiasco and how it could have gone so wrong.
6 answers
EthereumEagleGuard
Tue Nov 26 2024
The large volume of withdrawals placed immense pressure on FTX. Customers losing confidence in the platform's stability rushed to withdraw their funds, exacerbating the liquidity crisis.
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KatanaSharpness
Tue Nov 26 2024
In response to the unfolding crisis, Binance, a major cryptocurrency exchange, announced its intention to acquire FTX. The move aimed to stabilize the market and prevent further contagion.
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KimchiQueenCharm
Tue Nov 26 2024
However, Binance's acquisition plans quickly unraveled. As more news reports emerged detailing the mishandling of customer funds at FTX, Binance decided to backtrack on the deal.
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Isabella
Tue Nov 26 2024
FTX experienced a significant crash due to several underlying issues. The primary factor was the mismanagement of funds, which led to a deterioration of its financial health.
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SeoulSoul
Tue Nov 26 2024
Lack of liquidity played a crucial role in accelerating the crash. With insufficient funds to meet withdrawal demands, the exchange struggled to maintain operations.
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