The FTX exchange is an online platform for buying and selling digital assets, like bitcoin, dogecoin, and ether. Platforms like these have grown in popularity in recent years as more people have become interested in investing in cryptocurrencies.
Over the course of a week, one of the world’s largest cryptocurrency exchanges collapsed spectacularly. Bankman-Fried’s trading firm, FTX, was closely linked with its sister firm Alameda Research. FTX exchange bankruptcy is reported to be contributed primarily by Alabama Research as the bulk of its assets were created from thin air and were linked to Bankman-Fried’s personal fortune of $26.5 billion last year.
FTX exchange bankruptcy occurred over a period of 10 days in November 2022. In an exclusive scoop by CoinDesk published Nov 2, Alameda Research, the quant trading firm that also operates under Bankman-Fried’s management, was found to hold $5 billion in FTT, the native token of FTX. Alameda’s investment foundation also invested in FTT, a digital token its sister company had developed, not a fiat currency.
How the bankruptcy of FTX will affect the cryptocurrency market was a question that arose in the minds of crypto-lovers. However, the crypto industry showing massive dislodging post-FTX’s collapse makes it clear.
- Three out of four (75.3%) are aware of FTX’s collapse and bankruptcy
- More than half (55.38%) have used FTX to perform crypto transactions
- One-third (36.64%) believe Binance backed out to avoid getting into trouble with FTX
FTX exchange bankruptcy was one of the most eventful and unexpected cryptos collapses in 2022. The survey began by asking if the respondents were aware of FTX’s downfall that led to FTX’s then-CEO losing his job and almost 94% of his wealth. 75.3% said they were well aware of the happenings, while 19.74% mentioned they knew but not in great detail. A minority of 4.96% was not aware at all of FTX’s collapse.
Also Read: Public Opinion Survey on “Bitcoin Is Dead”
The survey revealed that more than half (55.38%) of the respondents had used FTX’s platform to perform a crypto transaction, and another 26.52% were planning to do so.
Furthermore, the survey asked what was the main factor that led FTX to bankruptcy. For this, 65.44% pointed to FTX’s leverage cycle issues with sister company Alabama Research as the reason. 18.81% believed that FTX’s rival, Binance’s CEO, declaring the liquidation of FTT might have triggered the FTX exchange bankruptcy.
Binance CEO Changpeng Zhao’s announcement of FTT token liquidation upon investigations and allegations on FTX caused panic among FTX customers, which led to them withdrawing their deposits from FTX. The survey asked if the customer’s action was reasonable. The majority (65.8%) agreed with the customers’ withdrawal of their FTX funds, while 22.63% argued they should’ve waited further before taking any action.
Similarly, Binance was almost at terms with the deal to acquire FTX, from which the CEO Changpeng Zhao stepped off at the last moment, pointing out the issues surrounding FTX. 36.72% strongly agree with Binance’s decision to turn off the deal, while 1.59% strongly disagree with it.
In response to the question of why binance pulled out of the FTX deal, 36.64% responded that Binance wanted to stay away from troubled companies, 37.19% said that FTX’s issues might have been too much for Binance, and 17.95% indicated that FTX was Binance’s rival.
Further, the survey asked, ‘how much do you think the bankruptcy of FTX will affect the crypto market in general.’’ The crypto market will be greatly affected by FTX’s fall, according to 40.31%, and somewhat affected, according to 26.61%. Last but not least, 17.19% of respondents said it would barely affect the crypto market, while 7.03% said it would have no impact on the industry.
To conclude, considering recent happenings, the survey asked whether the respondents would consider investing in crypto. Surprisingly, 40.70% mentioned that they are highly likely to invest in crypto, and 24.30% said they are somewhat likely to consider investing. However, 2.38% said they are highly unlikely to make a crypto investment.
|Survey Title||Survey on the FTX Exchange Bankruptcy|
|Duration||November 19- November 26, 2022|
|Number of Participants||20,000|
|Demographics||Males and females, aged 21 to 99|
|Participating Countries||Afghanistan, Algeria, Angola, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Benin, Bolivia,… Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Chile, China, China (Hong Kong) China (Macao), China (Taiwan), Colombia, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, El Salvador, Ethiopia, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Greanada, Guatemala, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Malaysia, Maldives, Maluritania, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar [Burma], Namibia, Nepal, Nicaragua, Nigeria, Oman, Pakistan, Palestine, Panama, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Sierra Leone, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.|
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