Exchange Wars: Why FTX Crashed and How Binance Stayed Strong

in cryptoexchange •  2 years ago 

FTX is a cryptocurrency exchange that was launched in 2019 and has quickly grown in popularity among traders. However, in early 2021, FTX faced a number of issues that led to its failure. Conservative figures suggest $ 32 billion was lost.
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One of the main reasons for FTX's failure was the lack of proper risk management protocols. FTX's trading algorithms were not able to handle the high volatility in the market, and many traders lost money as a result. Additionally, FTX had inadequate security measures in place, which made it vulnerable to hacking and other cyber attacks.
In contrast, Binance, one of the most popular cryptocurrency exchanges, has taken steps to ensure the safety and security of its platform. For example, Binance has implemented a number of security measures such as two-factor authentication, SSL encryption, and cold storage for its users' assets. Additionally, Binance has a risk management system in place to detect and prevent fraudulent activities.
Binance also has a Secure Asset Fund for Users (SAFU), which is a fund that is set aside to protect users' assets in case of a hack or any other unexpected event. Binance also have a dedicated security team that continuously monitors the platform for any suspicious activity and implements upgrades and fixes to ensure the safety and security of its users' assets.
In conclusion, FTX's failure was a result of inadequate risk management protocols, lack of security measures, and poor trading algorithms. Binance, on the other hand, has implemented a number of security measures, risk management protocols, and has a dedicated security team to ensure the safety and security of its users' assets.

ftx vs binance.jpg

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