Following the bankruptcy of the cryptocurrency exchange FTX many people are worried about contagion, not only into other cryptocurrencies and exchanges but also into the real economy. .
In this video, I explain what happened with FTX and the reasons behind it. I also discuss some possible routes for contagion as well as show you some solutions to the problems that the cryptocurrency world faces.
00:00 | Introduction
00:39 | FTX & Alameda Research
02:52 | What A (Regulated) Exchange Does
04:50 | A Bad Week
10:05 | FTX “Balance Sheet”
13:56 | Contagion
19:47 | Solution