FTX, once the third largest crypto exchange by trading volume, collapsed over the past week as its native token, FTT, lost over 80 percent of its value. The firm has now filed for Chapter 11 bankruptcy protection, and its collapse could impact the entire crypto sector, said Ran Neuner, Host and Founder of Crypto Banter.
“How long will it take to bring money [back] into this industry, so people can trust it again?” Neuner said. “It’s a huge catastrophe… I expect the cleanup operation from this to last a long time.”
He suggested that this could lead other firms, like crypto lender BlockFi, to also fold. On Thursday, BlockFi announced it would be freezing withdrawals from its accounts.