FTX Collapse: A Digital Deluge

What Happened The FTX collapse, culminating on November 11, 2022, was a seismic event in the cryptocurrency market. What began as concerns over the solvency of Alameda Research, a trading firm closely linked to FTX, rapidly escalated into a fullblown crisis of confidence that brought down one of the largest crypto exchanges. Reports emerged alleging that FTX had misused customer funds, funneling billions to shore up Alameda's positions, leading to a liquidity crunch. The price of FTT, FTX's native token, experienced a precipitous decline as the crisis unfolded. In the days leading up to the official bankruptcy filing, FTT plummeted from around $22 to under $2, losing over 90% of its value in a matter of days. This dramatic price action reflected the market's deepseated fear and uncertainty regarding the future of FTX and the broader crypto ecosystem. The fall of FTX sent ripples across the entire crypto market, with Bitcoin and Ethereum also experiencing significant downturns. Key Statistics Metric Value Opening Price $22.00 Session High $22.50 Session Low $1.50 Closing Price $2.00 % Change 90% Volume 1020x average volume Note: Statistics are approximate based on historical records. The Market Context Leading up to the FTX collapse, the cryptocurrency market had already been experiencing a prolonged "crypto winter," with asset prices significantly down from their alltime highs of 2021. Interest rate hikes by central banks globally to combat inf