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As crypto continues to grow into a new and important market, the digital asset industry has been rocked by the sudden collapse of one of its biggest crypto exchanges - FTX. Led by crypto personality Sam Bankman-Fried, FTX had previously been ranked as the world’s third-biggest crypto exchange in terms of trading volume, so its downfall came as quite a shock to crypto investors. This news is sure to cause ripples throughout the crypto industry for a long time, and it serves as another reminder that despite its rising popularity, crypto remains an unpredictable and high-risk gamble.

This event echoed Mt Gox’s downfall although the underlying problem was quite different. Unlike Mt. Gox which fell victim to hack, FTX merely could not keep up with the sudden demand for withdrawals caused by investors who were losing faith in the platform. The resulting effect sent FTT, their native token, tumbling and kicked off a domino effect causing customers to rush out of the exchange and further crippling its ability to sustain itself, leading inevitably to its demise.

Bitcoin crashed, Ethereum crashed, and almost every other major token did the same. Then Binance stepped in, with the world’s number one exchange announcing it would buy FTX and ensure everyone gets repaid. But just as soon as the market settled, Binance announced a U-turn, saying the situation at FTX was beyond recovery. 

The implications from the complase of FTX will be felt for crypto for the coming years in more an thougher regulations. That is why we will follow the story. We start with a discussion of the situation with our guest. Professor Fatas.

Antonio is an influential professor of economics with an impressive set of credentials. With a Ph.D. in Economics from Harvard University and a research fellowship at the Centre for Economic and Policy Research in London, he brings broad expertise to his job as a Professor of Economics at INSEAD. His influence reaches beyond academia, working as a consultant for international organizations such as the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), and the World Bank. Thanks to his insight and knowledge, Dr. Fatas has been able to shape economic policies on a global scale.