In today's ever-changing cryptocurrency market, the rise and fall of FTX is undoubtedly a striking topic. As one of the innovators of crypto trading platforms, the founder of BitMEX expressed his unique views on this incident, exploring the impact of the FTX lightning incident on the Bitcoin market and the future direction of the crypto market. Through in-depth analysis, we can not only better understand the background of the FTX incident, but also make reasonable speculations on future cryptocurrency market trends.

Against this background, the analysis of the FTX lightning incident by the founder of BitMEX is particularly important. He pointed out that the collapse of FTX was not an isolated incident, but was closely related to the regulatory environment, market psychology and technical architecture of the entire crypto market. The rapid expansion of FTX is closely related to its lack of adequate risk control mechanisms, especially its deficiencies in liquidity management and transparency, which made it unable to effectively respond to market fluctuations. In addition, the collapse of FTX also exposed the potential risks of many platforms in the crypto market, prompting investors to re-examine their investment strategies and risk tolerance.

After the FTX incident, the reaction of the Bitcoin market is also worthy of attention. Many investors chose to exit the market after the collapse of FTX, resulting in drastic fluctuations in the price of Bitcoin. The founder of BitMEX believes that this panic selling is not only a direct response to the FTX incident, but also a blow to the confidence of the entire market. As the "gold standard" of the crypto market, the price fluctuations of Bitcoin will naturally affect the performance of other crypto assets. As investors' confidence gradually recovers, the price of Bitcoin has also begun to rebound, showing its resilience in the market.

At the same time, the FTX incident has also prompted the strengthening of market supervision. Regulators in various countries have begun to review the compliance of crypto exchanges, pushing the entire industry towards a more transparent and standardized direction. This change will undoubtedly have a profound impact on the future crypto market. The founder of BitMEX mentioned that although there may be some uncertainty in the short term, in the long run, the strengthening of supervision will provide a more stable foundation for the market and help attract more institutional investors to enter this field.

In addition to changes in market supervision, the FTX incident has also triggered reflections on cryptocurrency technology itself. The founder of BitMEX pointed out that as more and more users enter the crypto market, the security and reliability of the technical architecture have become particularly important. The collapse of FTX was partly due to the inadequacy of its technical architecture, which led to the inability to respond quickly when faced with a liquidity crisis. Therefore, future crypto trading platforms need to continue to innovate in technology to improve the stability and security of the system and ensure the safety of users' funds.

In terms of the future development trend of the crypto market, the founder of BitMEX believes that decentralized finance (DeFi) will become an important direction. The rise of DeFi provides users with more financial service options, reduces transaction costs, and improves the transparency and security of transactions. After the FTX incident, more and more investors have begun to pay attention to decentralized exchanges, and this trend will drive the transformation of the entire crypto market.

In addition, NFT (non-fungible token), as an emerging digital asset in recent years, will also have an important impact on the crypto market. The uniqueness and irreplaceability of NFT have made it widely used in art, games and other fields. The founder of BitMEX mentioned that as the NFT market continues to expand, related infrastructure and services will also be further developed, which will add new dimensions to the diversity of the crypto market.

In general, the FTX lightning incident is not only a major event in the crypto market, but also a profound reflection on the entire industry. The analysis of the founder of BitMEX provides us with a perspective to deeply understand this incident, and also provides useful inspiration for future market trends. As the market continues to evolve, investors need to remain vigilant, pay attention to market dynamics, and adjust their investment strategies in a timely manner.

In this process, investors should also actively participate in the construction of the crypto market and promote the development of the industry. Whether through technological innovation, compliance supervision, or education and popularization, it is an important way to promote the healthy development of the crypto market. Only in a more transparent and secure environment can the value of cryptocurrency be truly realized, allowing more people to enjoy the convenience and opportunities brought by this emerging financial tool.

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Coin Circle (120BTC.COM) News: Arthur Hayes, co-founder and former CEO of cryptocurrency derivatives trading platform BitMEX, published a long article "Speechles" today (10) to discuss the impact of the FTX crash on the market, and pointed out that he was "ecstatic" at this moment.

In the article, Hayes detailed the entire FTX crash, which started with Coindesk's revelation of Alameda's balance sheet, and then CZ announced that he would sell all his FTT tokens. Then Alameda CEO Caroline Ellison countered that he would buy all the tokens at $22, but it still couldn't stop the panic of users. A wave of capital flight emerged in a short period of time. In the end, FTX still couldn't resist the run crisis. SBF submitted a letter of intent to CZ to fully acquire FTX Global Station in the early morning of November 9.

Then, Hayes answered various questions in many people's minds:

 Did FTX embezzle customers' funds?

Hayes said there is no definite answer, but it can be seen from SBF's request for acquisition to CZ that FTX's exchange has experienced a run and cannot meet all customer withdrawal requests, so it can only seek acquisition. It is reported that FTX has processed a total of about $6 billion in withdrawal requests recently.

 Is Alameda insolvent?

Hayes said there is also no definite answer, but if FTX needs assistance, Alameda, as the fuse of the whole thing, may also be close to bankruptcy. In addition, he quoted the analysis of Lucas
Nuzzi, head of research at CoinMetrics, which speculated that Alameda had collapsed with Three Arrows Capital in the second quarter of this year. The reason why Alameda survived was that it obtained FTX funds based on FTT as "collateral", with a total value of about $4.19 billion.

 Will the Binance acquisition come true?

Hayes said that if the loophole is too large, then he expects Binance to abandon the deal, but assuming that even Binance cannot acquire it, then there may be no one in the market who can make up for such a huge loophole. (By press time, Binance has announced that it will abandon the acquisition)

 What if FTX can't find a new buyer?

Hayes said that this will be similar to MtGox (Mentougou Exchange), and may enter another high-profile bankruptcy situation. Even if users are waiting in line for withdrawal requests, they need to be mentally prepared that it will be a long process.

 Which crypto companies will be affected?

Hayes said that given the significant risk positions, the biggest question is whether these companies involving FTX lenders can survive. In the past Three Arrows Capital bankruptcy incident, Celsius, BlockFi and Voyager all declared bankruptcy under chain reactions. This time the scale will be even larger, which can be called the Lehman storm in the cryptocurrency world.

 What will happen to the crypto market in the future?

Hayes cited the trend of the S&P after the financial crisis in 2008. He believes that although the S&P only completed its historical bottom in March of the following year, because the crypto industry did not have the "Federal Reserve's big money" rescue, the market bubble will be released at the fastest speed, and the final bottom will come soon; and it will recover quickly, even stronger than before.

Hayes once again expressed his optimism about the prospects of cryptocurrency in 2023. 

At the end of the article, Hayes emphasized that FTX is not the first well-known exchange to fail, nor will it be the last. In the face of centralized failures, decentralized tokens and finance will continue to survive and thrive.

"In all of this, blocks on Bitcoin, Ethereum, and all other blockchains are still being produced and verified."

The rise of FTX is one of the brightest stars in the crypto market. The exchange was founded in 2019 and quickly won the favor of a large number of users with its innovative trading products and user-friendly interface. FTX's novel products such as leveraged tokens and prediction markets have attracted the attention of many investors and even ranked among the world's top exchanges in just a few years. However, in 2022, FTX quickly collapsed due to a liquidity crisis, which brought huge shocks to the entire crypto market. This incident not only caused many investors to suffer heavy losses, but also triggered people's deep thinking about the entire crypto ecosystem.

In this crypto market full of opportunities and challenges, how future trends will develop remains an open question. However, it is certain that after the baptism of the FTX incident, the entire industry will move in a more mature and standardized direction. As the founder of BitMEX said, the future crypto market needs more innovation and responsibility, only in this way can it be invincible in the fierce competition.

Finally, the FTX lightning incident reminds us that investment is risky and we need to be cautious when entering the market. No matter how the market changes, maintaining a rational and prudent attitude is always the key to successful investment. In the future crypto market, only those participants with foresight, adaptability and innovation can win in this financial revolution. Let us look forward to the future crypto market being more prosperous and brilliant.