{"id":511688,"date":"2022-11-18T02:55:18","date_gmt":"2022-11-17T23:55:18","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/"},"modified":"2022-11-18T02:55:18","modified_gmt":"2022-11-17T23:55:18","slug":"ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/","title":{"rendered":"# FTX will be the last giant to fall this cycle: Hedge fund co-founder"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34c8c77018a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34c8c77018a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftx-will-be-the-last-giant-to-fall-this-cycle-hedge-fund-co-founder\/#%E2%80%9D_FTX_will_be_the_last_giant_to_fall_this_cycle_Hedge_fund_co-founder_%E2%80%9C\" >&#8221; FTX will be the last giant to fall this cycle: Hedge fund co-founder &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_FTX_will_be_the_last_giant_to_fall_this_cycle_Hedge_fund_co-founder_%E2%80%9C\"><\/span>&#8221; FTX will be the last giant to fall this cycle: Hedge fund co-founder &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYTFjODIyYTQtMzFjOS00ZDdmLWIzYTgtYzg5NzZjMmY3M2YxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-887bb764>While the FTX crisis is continuing to unfold, the former head of risk at Credit Suisse believes the exchange&#8217;s fall from grace should be the last catastrophic event\u00a0\u2014 at least in this market cycle.\u00a0<\/p>\n<p>CK Zheng, the former head of valuation risk at Credit Suisse and now co-founder of crypto hedge fund ZX Squared Capital said that FTX\u2019s fall was part of a \u201cdeleveraging process\u201d that began after the COVID-19 pandemic and further accelerated after the fall of Terra Luna Classic (LUNC), formerly Terra (LUNA).<\/p>\n<p>\u201cWhen LUNA blew up a few months ago, I expected a huge amount of deleveraging process to kick in,\u201d said Zheng, who then speculated that FTX should be last of the \u201cbigger\u201d players to get \u201ccleaned up\u201d during this cycle. <\/p>\n<p>Before its collapse, FTX was the third largest crypto exchange by volume after Binance and Coinbase.\u00a0<\/p>\n<blockquote><p>\u201cI\u2019m sure there are multiple players that will probably get impacted [&#8230;] in the following weeks, you know, small, large \u2014 but I would say this one in terms of magnitude will be one of the larger ones before the whole cycle really ends.\u201d<\/p><\/blockquote>\n<p>On Nov. 14, crypto exchange BlockFi admitted to having \u201csignificant exposure\u201d to FTX and its affiliated companies. A day later, a Wall Street Journal report <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/blockfi-prepares-for-potential-bankruptcy-as-crypto-contagion-spreads-11668534824?siteid=yhoof2\">suggested<\/a> it was preparing for a potential bankruptcy filing. <\/p>\n<p>A number of exchanges have also halted withdrawals and deposits this week, citing exposure to FTX, including crypto lending platform SALT and Japanese crypto exchange Liquid. <\/p>\n<p>On Nov. 16, institutional crypto lender Genesis Global said it would temporarily suspend\u00a0withdrawals citing &#8216;unprecedented market turmoil.&#8217;<\/p>\n<p>The fate of these businesses are yet to be determined.<\/p>\n<p>Zheng noted that moments like this are all normal signs of a lengthy, stressful crypto winter which \u201cbasically wipes out many of the weak players.\u201d <\/p>\n<p>On a positive note, however, Zheng said that the FTX collapse is unlikely to shake institutional investor confidence, at least for those investing in blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> and certain cryptocurrencies such as Bitcoin and Ethereum.<\/p>\n<blockquote><p>\u201cFor many of the institutional investors [&#8230;] as long as they think about the longer term, they think about how blockchain technology is going to advance in the future to help the financial industry [&#8230;] that\u2019s still in place.\u201d<\/p><\/blockquote>\n<p>CoinShares\u2019 head of research James Butterfilll in a Nov. 14 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.coinshares.com\/volume-106-digital-asset-fund-flows-weekly-report-64ae996bffe6\">note<\/a> revealed that inflows into cryptocurrency investment products rose sharply last week after institutional investors bought the dip triggered by FTX\u2019s collapse. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Investors see the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/FTX?src=hash&amp;ref_src=twsrc%5Etfw\">#FTX<\/a> collapse as an opportunity with crypto inflows totalling US$42m<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/neDkmnr6ae\">https:\/\/t.co\/neDkmnr6ae<\/a><\/p>\n<p>\u2014 James Butterfill (@jbutterfill) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jbutterfill\/status\/1592085274959421444?ref_src=twsrc%5Etfw\">November 14, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks.<\/p>\n<p>On the other hand, their outlook wasn\u2019t so optimistic for blockchain equities, which registered $32 million in weekly outflows. <\/p>\n<p><strong><em>Related: Paradigm co-founder feels &#8216;deep regret&#8217; investing in SBF and FTX<\/em><\/strong><\/p>\n<p>Zheng said it was \u201cmind-boggling\u201d how much damage an MIT-educated, 30-year-old young person can do\u00a0to the crypto ecosystem \u2014 referring to FTX former CEO Sam Bankman-Fried. <\/p>\n<p>He believes the fall of FTX was the result of a lack of clear rules and regulations governing crypto exchanges. Zheng said it may also have been the result of a top-heavy management structure that may not have had the necessary know-how to run a business of such a size. <\/p>\n<p>\u201cObviously, they\u2019re smart in one aspect, but they\u2019re running a $32 billion company is very different than, you know, when you manage a small company.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ftx-likely-the-last-crypto-giant-to-fall-this-cycle-hedge-fund-co-founder\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; FTX will be the last giant to fall this cycle: Hedge fund co-founder &#8220; While the FTX crisis is continuing to unfold, the former head of risk at Credit Suisse believes the exchange&#8217;s fall from grace should be the last catastrophic event\u00a0\u2014 at least in this market cycle.\u00a0 CK Zheng, the former head of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":511689,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYTFjODIyYTQtMzFjOS00ZDdmLWIzYTgtYzg5NzZjMmY3M2YxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[135234,89897,4978,117,72357],"class_list":["post-511688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-ftx","tag-sam-bankman-fried","tag-bankruptcy","tag-business","tag-credit-suisse"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/511688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=511688"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/511688\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/511689"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=511688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=511688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=511688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}