The FTX Crypto Fiasco – WSJ

This week’s investor run on cryptocurrency exchange FTX marks the second round of the Great Crypto Crisis, and so far the victims have been consenting adults. Barring an unexpected spread to the banking system, it’s another in a long line of easy money fads that have turned into panic.

FTX CEO Sam Banman-Fried has been the leading champion of the crypto industry. This year, he organized the bailout of several struggling crypto companies, including lenders digital travel and BlockFi Inc., as falling digital asset values ​​exposed bad betting and computer coding. Recall the collapse in May of the stablecoin TerraUSD, whose stable value was based on an algorithm.


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