One year after FTX imploded, here’s how crypto is changing
For many who trade cryptocurrencies for a living, the events of a year ago are forever etched in memory.
“The worst day of my career, and one of the worst days of my life — the day FTX froze withdrawals," is how Travis Kling, who runs Ikigai Asset Management, described it in a series of tweets on Nov. 7. Four days later, Sam Bankman-Fried’s exchange filed for bankruptcy, ushering in arguably the darkest days in crypto’s history.
“The first weeks were incredibly brutal. I didn’t sleep much at all. Feelings of terror, guilt and shame. We laid off most of the team," Kling wrote.
A year on, the industry is irrevocably altered — while at the same time in many ways remarkably familiar.
Mostly gone are the giddy day traders and the abundant leverage that drove Bitcoin to its November 2021 high at close to $69,000. Same for celebrities and social-media influencers peddling nonfungible tokens and memecoins. Regulators determined not to get caught off guard again are tightening their grip. And large financial firms like BlackRock Inc. are moving in, drawn by the prospect of the US Securities and Exchange Commission giving its first blessing for an ETF investing directly in Bitcoin.
Perhaps the most tangible indicator that crypto has moved on: Bitcoin has recovered all its losses since the May 2022 implosion of stablecoin TerraUSD, which set in motion the wave of failures that ultimately helped bring down FTX.
“People have short memories," said Jeff Dorman, chief investment officer at asset manager Arca.
Read more: Bitcoin Rallies Past Terra Crash Level in Win for Bruised Bulls
Some observers see an industry still afflicted by rampant speculation and insufficient safeguards. The Tether stablecoin, a pillar of the sector long
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