The downfall of Sam Bankman-Fried’s FTX has revibrated through the crypto sector, and more measures must be taken to protect consumers, according to Crypto.com CEO, Kris Marszalek.
One consequence of the collapse has been shrinking the liquidity in the broader market, and various exchanges are going to have to adjust accordingly.
“Right now after this FTX collapse, the liquidity in the market is poor and it may be so that a number of the smaller coins will have to be delisted in an effort to protect consumers,” he told CNBC on Friday.
FTX’s downfall was its reliance on its own token, FTT, to shore up its balance sheet and that of sister firm Alameda Research. The asset slumped in value and wreaked havoc on Bankman-Fried’s crypto empire. Crypto.com, for its part, has a token too, called Cronos.
Marszalek said his firm has never utilized Cronos in the same risky ways that FTX leveraged FTT.
“[Crypto.com] is a completely different nature of business, versus FTX running a hedge fund and an offshore unregulated derivatives exchange and losing $10 billion in the process,” he said.
