Two years ago, FTX filed for bankruptcy, leading to jail terms for key individuals involved. However, the failure of FTX was not a failure of crypto as a whole, but rather a failure of centralized institutions that crypto aimed to disrupt. The commingling of funds between FTX and Alameda Research led to the downfall, but DeFi proved successful as Alameda paid off debts during FTX's collapse. Other projects affiliated with FTX, such as Abracadabra and Wonderland, have become ghost projects in crypto's history. Fears of Binance monopolizing the market did not come to pass, as the BUSD stablecoin was deprecated and BNB Chain fell to fourth place by TVL. FTX's failure prompted the industry to adopt "proof of reserves" as a security standard for centralized crypto products. Despite setbacks, the crypto industry has learned from the FTX incident.
- Content Editor ( blockworks.co )
- 2024-11-11
Remembering FTX: How the collapse shaped crypto’s future