FTX collapse: The crypto industry’s Lehman Brothers moment By Cointelegraph

Fed holds rates steady, but leans hawkish with fewer rate cuts expected next year

FTX collapse: The crypto industry’s Lehman Brothers moment

Published Nov 11, 2022 09:00AM ET Updated Nov 12, 2022 12:40PM ET

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FTX collapse: The crypto industry’s Lehman Brothers moment

The world’s third-largest cryptocurrency exchange, FTX, started the year with a $400 million Series C funding round, taking its valuation to over $32 billion. Ten months later, the crypto exchange is staring down the possibility of bankruptcy after its bid to be acquired by Binance failed.

FTX was seen as one of the largest global crypto players as it established itself with multiple mainstream brand and sponsorship partnerships and billions in fundraising. The crypto exchange’s finances were never in question, given it bailed out multiple lending firms during the crypto contagion in the second quarter of 2022. However, things took a wild turn in the second week of November.

FTX’s $8 billion shortfall on the balance sheet against % market capitalization. Source: true insights

U.S. midterm election donations. Source: Unusual Whales

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FTX collapse: The crypto industry’s Lehman Brothers moment

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