This week’s investor run on the FTX crypto-currency alternate marks spherical two of the nice crypto crackup, and up to now the victims are consenting adults. Barring an surprising unfold to the banking system, that is one other within the lengthy line of easy-money manias turned to panic.
FTX CEO Sam Bankman-Fried has been the crypto business’s main champion. This yr he engineered bailouts of a number of troubled crypto companies, together with lenders Voyager Digital and BlockFi Inc., as plunging digital asset values uncovered dangerous bets and pc coding. Recall the Could collapse of stablecoin TerraUSD, whose steady worth was primarily based on an algorithm.
