Why FTX's Collapse Is The Crypto Equivalent Of The 2008 Lehman Brothers Crisis

For what was considered to be the third-largest cryptocurrency exchange in the world, FTX’s rapid decline into bankruptcy has sent shockwaves through the crypto community, spooking millions of investors and roiling the cryptocurrency markets further.

However, what initially seemed to be just another case of an overleveraged crypto firm going bust has now opened up a can of worms that could undermine the stability of the entire crypto ecosystem.

Let us look into the chain of events leading up to FTX’s spectacular plunge into liquidation and why it has parallels with the bankruptcy of Lehman Brothers, the event that triggered the global financial crisis of 2008.

Read the full article on Benzinga: Why FTX's Collapse Is The Crypto Equivalent Of The 2008 Lehman Brothers Crisis
 

wendywynn

New member
mmmm... I would say that's a stretch, but I see what you're getting at there. I would argue that mortgage backed securities, which represent the loans made on the roof over people's heads, is in a different league than some crypto holdings... but the chain of events is similar, so I'll give you that.
 
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