๐จ WHY DID FTX COLLAPSE? โ THE SHOCK THAT ROCKED CRYPTO ๐จ
FTX wasnโt just another exchange. It was once valued at $32 billion and trusted by millions. Then it collapsed almost overnight. Hereโs why it really happened ๐
1๏ธโฃ Misuse of Customer Funds
FTX secretly used customer deposits to cover losses at its sister trading firm Alameda Research. This is the biggest red flag in finance โ and the core reason for the collapse.
2๏ธโฃ No Real Risk Management
There were no proper controls, no separation of funds, and no internal oversight. Decisions worth billions were made without checks or accountability.
3๏ธโฃ Over-Leverage & Bad Bets
Alameda made highly risky trades using borrowed money. When markets turned, losses exploded and liquidity vanished fast.
4๏ธโฃ Lack of Transparency
FTX balance sheets were opaque. Investors and users had no clear picture of how funds were actually being used.
5๏ธโฃ Bank-Run Effect
Once the truth leaked, users rushed to withdraw funds. FTX didnโt have the cash. Withdrawals were halted. Panic spread.
6๏ธโฃ Trust = Everything
In crypto, trust is oxygen. The moment confidence died, FTX was already finished.
โ ๏ธ BIG LESSON FOR INVESTORS
Not your keys, not your crypto.
Even the biggest names can fall.
๐ก Smart money learns from history โ not headlines.
$FTT #FTX #CryptoCollapse #CryptoLessons #RiskManagement #CryptoSafety #NotYourKeysNotYourCrypto #CryptoInvesting