FTX Bankruptcy, Rising Costs, and Lawsuits Alters Crypto Market: Reports
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- The crypto market isn’t as profitable to traders as it was a year ago, according to Bloomberg.
- Market makers were reportedly adapting to reduce the risks, but their efforts were affecting their profit margins.
- FTX’s debacle is leading traders and market makers to prioritize risk management.
The crypto market‘s profit margins sank 30% in comparison to last year, according to Bloomberg. The market used to be profitable for traders, but after the bankruptcy of the FTX exchange, investors started to avoid the sector. The article shed light on traders’ concerns about rising costs and lawsuits against crypto exchanges.
The crash that happened after FTX declared bankruptcy led to many coins being stuck on the collapsed exchanges. The report shared that market makers were increasing their efforts to reduce the risks of similar future situations; however, their attempts led to a decrease in their profit margin.
Some liquidity providers took a different approach and started diversifying their activity across more exchanges. The article further pointed out that Auros, GSR Markets, and Wintermute Trading stored digital-asset inventories away from trading venues and us…
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