FTX Collapses

In November, as this author was attending the previously mentioned Bright Moments Mexico City, news began breaking of the collapse of the FTX crypto exchange and Alameda Research. Once one of the world’s largest cryptocurrency exchanges, FTX precipitously collapsed in a matter of days, stunning the industry and giving a further black eye to anything related to crypto or NFTs. The downfall began when a report revealed the financial instability of Alameda Research, FTX’s sister company, leading to a market panic. Binance—the Chinese-based company considered FTX’s main rival—initially considered rescuing FTX but withdrew after reviewing its finances. FTX filed for bankruptcy on November 11, with CEO Sam Bankman-Fried resigning amid accusations of fraud. The collapse triggered a broader crisis in the cryptocurrency market, with FTX owing billions to creditors and sparking a major loss of confidence in the industry, the cloud of which remains to this writing.