News analysis: What does FTX's crash mean for Temasek Holdings, and should such entities invest in the crypto industry?

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Explainer: What does FTX's crash mean for Temasek Holdings, and is it wise for such entities to invest in the crypto industry?

FTX last week should be seen as an isolated incident, not as a systemic failure of the industry, and should not deter institutional firms from investing in such outfits, said analysts., which was shocking to many, should underline how important it is for investors to study the risks they take when they park their money in a lightly regulated industry, they added.

that it was aware of the developments between FTX and Binance and was engaging FTX in its capacity as a shareholder. But just as quickly as Binance offered its rescue package in the form of an acquisition, the company backed out of the deal. Among the questions that have been raised since the FTX collapse is why MAS had not made a move to stop the company from collecting funds from Singapore-based investors, when it had done so against Binance.Maybank economist Chua Hak Bin said that while the loss to Temasek is painful, it represents less than 0.1 per cent of Temasek’s total assets, which are estimated to be about S$403 billion in 2022.

CIMB economist Song Seng Wun said: “It is less so about putting money in the asset but the operation of the system and the dominant players in the industry.

 

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