FTX Debacle: Is There Anyway To Calm Crypto Investors Down?

FTX Debacle: Is There Anyway To Calm Crypto Investors Down?

The blowup of the politically connected, virtue-signaling crypto project known as FTX has scared the bejeezus out of retail crypto investors. Myself included. Small investors with maybe two bitcoin to speak of, and a few alt-coins held on Coinbase have all seen their portfolios drop by upwards of $100, 000 over the last year. FTX doesn't help matters. Crypto has survived other disasters, like Mt. Gox in 2014, but FTX is different. It is the most significant short-term single-day loss in crypto ever. It was heavily connected to party politics, with its founder Sam Bankman-Fried being a big donor to Democrats this mid-term, was a funder of non-profit publishers like The Intercept, and had the naming rights to the Miami Heat arena, known as the FTX Arena. FTX looked like the A-Team. You could count on one hand the number of people raising red flags about the company over the last year. CoinTelegraph raised questions about the company in early November. As did the popular investor channel, Hedgeye. The FTX disaster is different from all other crypto disasters, not just because of the big names involved. When Mt Gox fell apart in 2014, and thousands of investors lost their bitcoins,