You must have heard that FTX, one of the largest crypto exchanges in the world, filed for bankruptcy on Friday. We will be looking at the new-age companies that seek to disrupt the existing crypto ecosystem by learning from the collapse of FTX, a cryptocurrency exchange founded in 2019 and valued at $32 million. Although it sounds futuristic to try and change the way things work, systems that have been around for decades contain valuable lessons. This article proposes that companies who want to challenge the established rules of how things are done should first master them.
Let’s start with what we already know. Binance and FTX are two cryptocurrency exchanges that allow customers to trade digital currencies for traditional currency or other digital currencies. They processed most of the crypto trades worldwide. Alameda Research was the quantitative trader run by Sam Bankman-Fried, CEO of FTX (SBF).
CoinDesk, a crypto publication published on 2 November 2022, claimed that $5.8 Billion of Alameda’s $14.6 Billion assets were coins issued by FTX (also known as FTT). FTT was used to secure loans from multiple entities, as Alameda traded complex derivatives. In response to the recent revelations, Changpeng Zhao (CZ), Binance CEO, stated that he would sell its FTT token, which is worth close to $580 million, and he will dump it. FTT’s price was $25 at that time; it has fallen more than 90% since.
CZ’s comments prompted FTX customers to rush to leave and the exchange was hit with $5 billion in withdrawals. In ideal circumstances, an exchange should be able to process all client withdrawals. SBF acknowledged that FTX had only $4 billion worth of easily traded assets to pay for them. Customers had trouble withdrawing funds after the curtains were pulled down on 8 November. There are billions of dollars worth of assets stuck on FTX at the moment, including half of Galois Capital’s capital, a hedge fund whose founder was credited with spotting cryptocurrency Luna’s collapse.
Electric financial savings comparable to ditching standby: PS55
This is an estimate of the annual savings from small actions, such as turning off electrical devices rather than keeping them on standby. The Times report does not include the other measures, but they could include remembering to turn off lights and switching to drying racks over the tumble dryer. These two measures, according to the Energy Saving Trust, can help you save as much as PS25 and PS70 per year, respectively.
Switching showers from the tub to the shower: PP15-PS20
According to a government evaluation, people who take regular baths could save PS15 by switching out one for a weekly bath. According to EST, switching one bathtub per week for a 4-minute bath can help save PS20 over 12 months. It is understood that ministers have rejected the calls for people to switch to shorter showers or lower thermostats.
Investing in your home: Multiple financial savings
Since long, campaigners have argued that efficient insulation is the best way to conserve energy. This measure will be promoted by a marketing campaign that encourages loft insulation, cavity wall insulation, and thermostatic radiator valves. Last week, chancellor Jeremy Hunt announced a PS6bn increase in funding for energy efficiency starting in 2025.
EST estimates that a programmer, room temperature and thermostatic radiator valves can save PS180 per year. A complete set of controls costs around PS580. This funding can be recouped over 4 years. Photo voltaic panels and similar measures would cost more, but the payback period has been shortened by the energy crisis.
The government may also advise the public about other measures, such as draughtproofing windows and doors, insulation of sizzling water pipes, and bleeding radiators.