Author: 0xSpread Source: X, @0xSpreadNews

FTX, the world’s third largest crypto exchange, announced that Launch a customer compensation plan in early 2025. The black swan incident of FTX in the past still affects the encryption industry. The funding crisis and market risks it exposed profoundly changed the industry structure. Today, we’ll look back at the beginnings of FTX’s collapse and analyze how it faced the challenges of its revival.

1. The rise of FTX

FTX was founded by Sam Bankman-Fried (SBF) in 2017 Founded and quickly became a major player in the crypto industry. With its innovative trading platform and low trading fee strategy, FTX has attracted a large number of retail and institutional investors. The platform’s native token, $FTT, and partnerships with other crypto projects have seen FTX steadily rise in the industry. In 2021, FTX has successfully become one of the top three crypto exchanges in the world with strong capital and technical support, and its market value continues to grow.

2. Precursors of the crash and market reaction

Behind the glory of FTX there are profound financial risks hidden. Its parent company, Alameda Research, is over-reliant on the FTT token of the FTX platform, and FTT’s poor liquidity and high volatility make the platform’s balance sheet extremely fragile.

In early November 2022, the media exposed Alameda’s financial loopholes, and FTX’s funding problems began to surface.

On November 5, 2022, Binance CEO Changpeng Zhao announced the liquidation of FTT tokens. This news triggered market panic and exposed the liquidity problem of FTX. Users withdraw cash one after another, and FTX’s capital chain quickly breaks.

On November 8, 2022, FTX declared bankruptcy and SBF resigned as CEO. The FTT token price plummeted 96%, from $26 to $0.98, while major cryptocurrencies such as Bitcoin also suffered heavy losses. The crypto market instantly went into panic.

3. Regulatory pressure and industry shock

FTX’s bankruptcy not only severely damaged the wealth of millions of investors, but also attracted great attention from global regulatory agencies. Countries began to strengthen supervision of cryptocurrency exchanges, requiring greater compliance and transparency, aiming to Avoid similar incidents from happening again. Many institutions that have cooperated with FTX have also been severely affected, such as well-known investors such as Temasek and Sequoia Capital, as well as the Solana ecosystem.

4. The launch of the 2025 compensation plan.

During the restructuring process, FTX announced that it will begin implementing a compensation plan on January 3, 2025. This plan is designed to repay customer funds damaged during the bankruptcy proceedings. Although FTX's total liabilities are as high as $8 billion, The process of recovering funds has made significant progress.

FTX has reached agreements with institutions such as BitGo and Kraken to jointly assist in distributing compensation payments to retail and institutions. Clients provide hosting services, and Kraken It supports the compensation of exchange customers. Users need to log in to the FTX debtor customer portal before January 3, 2025, and complete the necessary verification procedures to ensure that they can participate in the first compensation.

Learn more: FTX official information

5. FTX’s revival challenges

Although FTX A compensation plan was launched and funds were actively recovered, but its brand reconstruction faced major challenges. Although the compensation plan brought a glimmer of hope to customers, FTX could regain its former market position. Still unknown. Other exchanges in the industry are also paying close attention to FTX's revival process, especially how to restore user trust while complying with compliance requirements. The story will become a case for rebuilding trust and risk management in the encryption industry

6. The future and lessons of the encryption industry

FTX’s collapse is not just the collapse of a single exchange. , is a profound reflection on the entire crypto industry. It exposes key issues such as decentralization, transparency, and regulatory compliance to avoid repeating FTX’s mistakes in the future. Although the bankruptcy has caused the market to pay a heavy price, it also prompted the industry to pay more attention to risk control and compliance. The future encryption market may gradually return to rationality under a more stringent regulatory framework.

7. Summary

The rise and collapse of FTX has become a warning for the encryption industry. With the start of the compensation plan in 2025, the story of FTX may Ushering in a new chapter, although the future is full of uncertainty, this event has profoundly affected the regulation and market development of the encryption industry. In any case, the ups and downs of FTX will be a part of the history of the encryption industry that cannot be ignored, laying the foundation for subsequent market development and development. Risk management provides valuable experience