FTX, Alameda, Illiquidity & Contagion

FTX and its affiliated company Alameda used illiquid tokens as collateral, which resulted in the token losing its value, to liquidity issues that have ended in the bankruptcy filling. The digital assets ecosystem has been impacted by these events and the top 100 tokens market value dropped by 15%-20%. Also, regulators may ramp up the enforcement actions to protect investors in the US. Alkesh noted that the blockchain technology is still finding application and adoption, and these events will not affect that trend.

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