Do repost and rate:
FTX CEO Sam Bankman-Fried warned in a recent interview that several small crypto exchanges are already “secretly insolvent,” and that many more are set to fail.
Speaking to Forbes, Bankman-Fried warned that reckless investing during the crypto rally over the past two years could result in a string of failures after prices crashed.
This was also due to several small players offering double digit yields, which could not be sustained once crypto prices began to fall.
Other smaller exchanges, which were offering yields far beyond their capital levels, are also likely to fold.
There are companies that are basically too far gone and it’s not practical to backstop them.
