While the FTX crisis is continuing to unfold, the former head of risk at Credit Suisse believes the exchange’s fall from grace should be the last catastrophic event\u00a0\u2014 at least in this market cycle.\u00a0<\/p>\n
CK Zheng, the former head of valuation risk at Credit Suisse and now co-founder of crypto hedge fund ZX Squared Capital said that FTX\u2019s fall was part of a \u201cdeleveraging process\u201d that began after the COVID-19 pandemic and further accelerated after the fall of Terra Luna Classic (LUNC), formerly Terra (LUNA).<\/p>\n
\u201cWhen LUNA blew up a few months ago, I expected a huge amount of deleveraging process to kick in,\u201d said Zheng, who then speculated that FTX should be last of the \u201cbigger\u201d players to get \u201ccleaned up\u201d during this cycle. <\/p>\n
Before its collapse, FTX was the third largest crypto exchange by volume after Binance and Coinbase.\u00a0<\/p>\n
\u201cI\u2019m sure there are multiple players that will probably get impacted […] in the following weeks, you know, small, large \u2014 but I would say this one in terms of magnitude will be one of the larger ones before the whole cycle really ends.\u201d<\/p><\/blockquote>\n
On Nov. 14, crypto exchange BlockFi admitted to having \u201csignificant exposure\u201d to FTX and its affiliated companies. A day later, a Wall Street Journal report suggested it was preparing for a potential bankruptcy filing. <\/p>\n
A number of exchanges have also halted withdrawals and deposits this week, citing exposure to FTX, including crypto lending platform SALT and Japanese crypto exchange Liquid. <\/p>\n
On Nov. 16, institutional crypto lender Genesis Global said it would temporarily suspend\u00a0withdrawals citing ‘unprecedented market turmoil.’<\/p>\n
The fate of these businesses are yet to be determined.<\/p>\n
Zheng noted that moments like this are all normal signs of a lengthy, stressful crypto winter which \u201cbasically wipes out many of the weak players.\u201d <\/p>\n
On a positive note, however, Zheng said that the FTX collapse is unlikely to shake institutional investor confidence, at least for those investing in blockchain technology and certain cryptocurrencies such as Bitcoin and Ethereum.<\/p>\n
\u201cFor many of the institutional investors […] as long as they think about the longer term, they think about how blockchain technology is going to advance in the future to help the financial industry […] that\u2019s still in place.\u201d<\/p><\/blockquote>\n
CoinShares\u2019 head of research James Butterfilll in a Nov. 14 note revealed that inflows into cryptocurrency investment products rose sharply last week after institutional investors bought the dip triggered by FTX\u2019s collapse. <\/p>\n
Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks.<\/p>\n
On the other hand, their outlook wasn\u2019t so optimistic for blockchain equities, which registered $32 million in weekly outflows. <\/p>\n
Related: Paradigm co-founder feels ‘deep regret’ investing in SBF and FTX<\/em><\/strong><\/p>\nZheng said it was \u201cmind-boggling\u201d how much damage an MIT-educated, 30-year-old young person can do\u00a0to the crypto ecosystem \u2014 referring to FTX former CEO Sam Bankman-Fried. <\/p>\n
He believes the fall of FTX was the result of a lack of clear rules and regulations governing crypto exchanges. Zheng said it may also have been the result of a top-heavy management structure that may not have had the necessary know-how to run a business of such a size. <\/p>\n
\u201cObviously, they\u2019re smart in one aspect, but they\u2019re running a $32 billion company is very different than, you know, when you manage a small company.\u201d<\/p>\n
Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"While the FTX crisis is continuing to<\/p>\n","protected":false},"author":3,"featured_media":167020,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n
FTX will be the last giant to fall this cycle: Hedge fund co-founder - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FTX will be the last giant to fall this cycle: Hedge fund co-founder - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"While the FTX crisis is continuing to\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-18T01:37:07+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2022\/11\/FTX-will-be-the-last-giant-to-fall-this-cycle-Hedge-fund-co-founder.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/\",\"url\":\"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/\",\"name\":\"FTX will be the last giant to fall this cycle: Hedge fund co-founder - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2022-11-18T01:37:07+00:00\",\"dateModified\":\"2022-11-18T01:37:07+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Crypto\",\"item\":\"https:\/\/precoinnews.com\/category\/crypto\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"FTX will be the last giant to fall this cycle: Hedge fund co-founder\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FTX will be the last giant to fall this cycle: Hedge fund co-founder - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/","og_locale":"en_US","og_type":"article","og_title":"FTX will be the last giant to fall this cycle: Hedge fund co-founder - Pre Coin News","og_description":"While the FTX crisis is continuing to","og_url":"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/","og_site_name":"Pre Coin News","article_published_time":"2022-11-18T01:37:07+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2022\/11\/FTX-will-be-the-last-giant-to-fall-this-cycle-Hedge-fund-co-founder.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/","url":"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/","name":"FTX will be the last giant to fall this cycle: Hedge fund co-founder - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2022-11-18T01:37:07+00:00","dateModified":"2022-11-18T01:37:07+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/crypto\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Crypto","item":"https:\/\/precoinnews.com\/category\/crypto\/"},{"@type":"ListItem","position":3,"name":"FTX will be the last giant to fall this cycle: Hedge fund co-founder"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/167021"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=167021"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/167021\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/167020"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=167021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=167021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=167021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}