Few were prepared for the dramatic collapse of crypto exchange FTX on November 11. The incident has left hundreds of thousands of customers without access to their funds, and the ripple effects have wiped billions of dollars from the market, as well as casting doubt over the integrity of other crypto companies.
FTX was so deeply embedded in the cryptosphere that many firms (including crypto lenders Genesis and BlockFi) have spent the last week hurriedly calculating their own financial exposure to the collapse, in fear they may be dragged down in the swell. Others, however, have sensed opportunity in the crisis and are readying plans to prevent further contagion. “We actually think this is a very good cleansing period,” said Changpeng Zhao, CEO of Binance, during a Twitter Spaces Q&A earlier this week. “The weak projects are gone, and the industry is much healthier.”