FTX Drama and Global Empact

[LDL]

FTX Chapter 11 is a scandalous event in the cryptocurrency world.  FTX's position as a centalized exchange was after Binance exchange.  There were millions of users from different countries of the world. This exchange has stolen almost $10 billion worth of crypto from customers.  Which has changed enough in the economic standards of different countries of the world.




Pic source

[o48o]

I didn't know that FTX was a direct port to asian markets. Are those countries using binance now?

Also, i thought it has users from united states, so i had to google and it was seperate operation. So i guess my question is that is FTX.US totally off the hook? How they or their us customers are not affected when 130+ companies are?

[Gozie51]

This is a big blow to crypto community with the countries on this list and how much loses made. I hope the government won't begin a difficult regime that will affect exchange operations in their jurisdiction to protect their citizens. I'm sure Nigerians deal more with binance which is why it is not on the top list.

[BIT-BENDER]

FTX issues has really giving crypto-Currency critics something to bite on. This damages are large to let go. I think there would be repercussions for this.

FTX exchange has also brought some lessons to many and that's never trust a centralized exchange, so much can go wrong, ignore how big they are even Binance, it still can happen to them. The dangers on centralized exchange and also the lack of security and privacy protection.
The FTX issues goes on I don't think it would take long before some government finds reason for sanctioning because of this issue.

[coupable]

It is very unfortunate in this list that most of these countries do not adopt cryptocurrencies, and the citizens of those countries cannot even file a complaint against the platform that caused their loss.
One of the most important negative consequences of what happened to the FTX platform is that countries and entities that refuse to adopt cryptocurrencies have found a pretext to support them and may lead them to issue more laws and regulations that limit the use of these assets.

[tabas]

I didn't know that FTX was a direct port to asian markets. Are those countries using binance now?

Most likely they are and that's why CZ is flying here and there to different countries in Asia for his backing to the market for this particular region. I also don't know that FTX has got a huge market in Asia and I thought that they've got the biggest share on North America but I remember that both FTX and Binance has got their own .us.

So i guess my question is that is FTX.US totally off the hook? How they or their us customers are not affected when 130+ companies are?

It's said that it's got a separated fund from the main FTX but it's still FTX no matter what. I don't think that they ever said that they're not affected, they also are affected since it's also part of FTX -> FTX.US -> Alameda.

[Hispo]

At first, I thought FTX had the bulk of their clients here in the American continent and Europe, but then I read they have their base of operations in Hong Kong.
Quite a blow to the market of Bitcoin there in Asia and perhaps many of you are not aware of this, but the worst part it is not only the money that was lost because this exchange, but the fact Japan and South Korea are countries where suicide is a serious social problem makes me think how many people had already ended their life or are considering to do so in those countries because the mismanagement by FTX. Truly a disgusting situation.

[Fortify]

FTX Chapter 11 is a scandalous event in the cryptocurrency world.  FTX's position as a centalized exchange was after Binance exchange.  There were millions of users from different countries of the world. This exchange has stolen almost $10 billion worth of crypto from customers.  Which has changed enough in the economic standards of different countries of the world.

While there has clearly been gross mismanagement at the very top of the business and terrible record keeping according to the person charged with coming in to tidy it up, I have a feeling that some people are misattributing where a lot of the losses have come from. It's all too convenient to point at a failed exchange and say, look they're the bad guys of the crypto world, they are the reason I lost all my money. However in reality I can bet large chunks of what is being attributed as "lost" money was in actual fact the value of crypto falling which was further accelerated after the announcement that FTX was in trouble. They did not help the situation, but the media sometimes misrepresent or simply do not understand some of the facts of the case.

[harapan]

This is a big blow to crypto community with the countries on this list and how much loses made. I hope the government won't begin a difficult regime that will affect exchange operations in their jurisdiction to protect their citizens. I'm sure Nigerians deal more with binance which is why it is not on the top list.

Is Binace exempted, are they not part of the exchange stuff's, Binance four or five years to come will also mess around with people's investment and bitcoin. It's just a prediction. History has shown before that big exchange's does that, I blame people they should have learnt from what happened to MT Gox honestly. FTX now has happened, they won't learn until Binance does there's again.

[Gozie51]

This is a big blow to crypto community with the countries on this list and how much loses made. I hope the government won't begin a difficult regime that will affect exchange operations in their jurisdiction to protect their citizens. I'm sure Nigerians deal more with binance which is why it is not on the top list.

Is Binace exempted, are they not part of the exchange stuff's, Binance four or five years to come will also mess around with people's investment and bitcoin. It's just a prediction. History has shown before that big exchange's does that, I blame people they should have learnt from what happened to MT Gox honestly. FTX now has happened, they won't learn until Binance does there's again.

Well I won't doubt that, binance is a centralised exchange also. Not many saw this coming on FTX as reference to MT Gox. History most times is forgotten until it has again and some will regret, others will be glad they are lucky. The crash of FTZ is definitely going to change the dynamics of old users from leaving their coins in exchange to transfering to open source wallet.

[Captain Corporate]

Honestly, when we are talking about just a few billion dollars, that's not going to impact the nation as a whole, it will just impact the investors, that's it. I know it's quite common that people end up with a lot of loss personally and that individual loss feeling makes you wonder how any more people are impacted, but it's not about the size, but more about the number of people. Nations such as South Korea deal in hundreds of billions of dollars every year even more if you calculate the size of both imports and export and also what's going on inside daily, so just a few billion dollars here wouldn't really change much for the country.

[Cryptomultiplier]

This is a big blow to crypto community with the countries on this list and how much loses made. I hope the government won't begin a difficult regime that will affect exchange operations in their jurisdiction to protect their citizens. I'm sure Nigerians deal more with binance which is why it is not on the top list.

Is Binace exempted, are they not part of the exchange stuff's, Binance four or five years to come will also mess around with people's investment and bitcoin. It's just a prediction. History has shown before that big exchange's does that, I blame people they should have learnt from what happened to MT Gox honestly. FTX now has happened, they won't learn until Binance does there's again.

The dangers of outcomes for one who uses these exchanges is just as seen. FTX has opened peoples eyes, but the danger of such repeating itself with other exchanges, like Binance is still plausible. An open source wallet is much preferable and using DCA technique for investing large sums is much more advisable.
No need for panic. Just be wise during investments, mostly over long term.

[Minecache]

FTX issues has really giving crypto-Currency critics something to bite on. This damages are large to let go. I think there would be repercussions for this.

FTX exchange has also brought some lessons to many and that's never trust a centralized exchange, so much can go wrong, ignore how big they are even Binance, it still can happen to them. The dangers on centralized exchange and also the lack of security and privacy protection.
The FTX issues goes on I don't think it would take long before some government finds reason for sanctioning because of this issue.

FTX is not the first centralized exchange to crash, we had a large exchange that was Mt.gox and many other smaller exchanges also collapsed. Everyone is aware that leaving money on it is risky, but most still choose to leave money because to serve their work, hope everyone is more vigilant after the FTX incident.

I don't think governments will punish FTX as most countries don't have crypto laws yet and FTX doesn't have a business registration in those countries. Investors will be responsible for their own consequences.

[Saint-loup]

FTX issues has really giving crypto-Currency critics something to bite on. This damages are large to let go. I think there would be repercussions for this.

FTX exchange has also brought some lessons to many and that's never trust a centralized exchange, so much can go wrong, ignore how big they are even Binance, it still can happen to them. The dangers on centralized exchange and also the lack of security and privacy protection.
The FTX issues goes on I don't think it would take long before some government finds reason for sanctioning because of this issue.

FTX is not the first centralized exchange to crash, we had a large exchange that was Mt.gox and many other smaller exchanges also collapsed. Everyone is aware that leaving money on it is risky, but most still choose to leave money because to serve their work, hope everyone is more vigilant after the FTX incident.

I don't think governments will punish FTX as most countries don't have crypto laws yet and FTX doesn't have a business registration in those countries. Investors will be responsible for their own consequences.

How could you think FTX and his CEO Sam Bankman-Fried won't be sued and sentenced if they've made shady and scammy things with the funds of their users? It's a crime in my country as in most countries. When someone gives you custody of something, it doesn't belong to you, and it's your responsibility to take care of it, otherwise you have to repair it or to pay damages. You should remember that Bernard Madoff has been sentenced to 150 years in prison and he died in jail.

[rat03gopoh]

At first, I thought FTX had the bulk of their clients here in the American continent and Europe, but then I read they have their base of operations in Hong Kong.

Considering FTX is the most influential exchange and more user verification friendly, FTX absorbs more Asian users after Binance has stricter KYC rules. In my country, many people recommend FTX as the primary alternative solution for trading without excessive KYC demands.

but the fact Japan and South Korea are countries where suicide is a serious social problem.

It's mostly due to the hectic working hours, I don't think financial management issues like investing will have much effect on their mental health. Another fact in South Korea, every resident who is born gets various kinds of life insurance. So even the unemployed don't think much about saving^[1].


1. https://www.statista.com/statistics/1234189/south-korea-unemployment-benefits-paid/

[adaseb]

FTX had KYC but it was minimal and never verified hence why it was so popular. All you needed was a working SMS in your country and that was it. Many used a burner phone. And for name and address many just made something up.

For other exchanges you need to submit actual id and proof of residency. You might even need to state the proof of funds. Hence why many chose FTX instead.

[Kakmakr]

FTX had KYC but it was minimal and never verified hence why it was so popular. All you needed was a working SMS in your country and that was it. Many used a burner phone. And for name and address many just made something up.

For other exchanges you need to submit actual id and proof of residency. You might even need to state the proof of funds. Hence why many chose FTX instead.

OK, I did not know that..... so a LOT of the money that was going through this exchange ..might have been "dirty"    The thing is... no matter where the money traded on this exchange came from, it still hurt Bitcoin's progress and adoption. 

I compare this "event" with the impact that the Mt Gox hack had on Bitcoin's progress, because loads of people got burnt and some even turned and attacked the technology.... and not themselves ..for trusting centralized exchanges. 

[Iranus]

This is a big blow to crypto community with the countries on this list and how much loses made. I hope the government won't begin a difficult regime that will affect exchange operations in their jurisdiction to protect their citizens. I'm sure Nigerians deal more with binance which is why it is not on the top list.

Is Binace exempted, are they not part of the exchange stuff's, Binance four or five years to come will also mess around with people's investment and bitcoin. It's just a prediction. History has shown before that big exchange's does that, I blame people they should have learnt from what happened to MT Gox honestly. FTX now has happened, they won't learn until Binance does there's again.

Binance is not exempt, but the Mt.gox crash or the FTX crash doesn't mean binance will crash. Do you use coinbase? As far as I know it was founded in 2012 and still exists to this day. I do not encourage people to store assets on centralized exchanges but not all centralized exchanges will go bankrupt. FTX bankruptcy does not mean binance will go bankrupt too, don't try to make such baseless inferences, they are not exactly the same. In terms of age, FTX is very young compared to binance and FTX compared to binance as well as a child a few years old compared to an adult.

[albon]

Indeed, this negative news affected the economy of 30 countries and more, caused a lot of losses, and affected the crypto market in general, as the total market value decreased and the prices of many currencies dump, and many companies were close to bankruptcy in this regard. What happened to the FTX platform teaches us not to put our money On any central exchange platform for a long time, it will not be the first or last platform. Only what we have to do is to transfer our currencies to the exchange platform at the time of selling or dealing on P2P. I hope in the future to regulate the crypto sector and put stricter restrictions on the exchange platforms that will protect consumers.

[o48o]

Is Binace exempted, are they not part of the exchange stuff's, Binance four or five years to come will also mess around with people's investment and bitcoin. It's just a prediction. History has shown before that big exchange's does that, I blame people they should have learnt from what happened to MT Gox honestly. FTX now has happened, they won't learn until Binance does there's again.

Except binance has done things very differently from the start:
 
- They are not using BNB as collateral.
- They are using Vitaliks new proof-of-reserves protocol.
- They don't have loans.
- And cz was even transparent of slowly selling FTT, even though he probably didn't get have a change to do that.

I've seen many reputable exchanges going down since i came to crypto, yet there are shadiest places like Yobit still up and running. And funny enough, superficially, without knowing the facts, Binance was the one that seemed very shady from the start with flashy ads handing lambos for an users tho make most volume in there, while FTX seemed like a professionally handled.

FTX might have even survived if CZ hasn't said anything, because without bank run, they could have made their money back in next bull run. But it's better this way, exchanges need to be better then banks and actually have full reserves, that's how we win.