The crypto market bears the scars of FTX's collapse

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The global cryptocurrency market remains badly scarred following the tumultuous collapse of crypto exchange FTX and other big players last year, with crypto prices, volumes and venture capital investment well below their 2021 peaks.

, the former CEO of FTX, stands trial in New York on Tuesday, charged with seven counts of fraud and conspiracy stemming from the exchange's abrupt collapse in November 2022. He has

"The issues with FTX have undoubtedly hit confidence in the crypto ecosystem at large," said Usman Ahmad, CEO of Zodia Markets, the crypto exchange of global bank Standard CharteredYet the relative calm in crypto markets is not necessarily a good thing, said some market participants, noting that many investors are attracted to crypto precisely because of its volatility, which offers opportunities to make quick profits.

In September 2023, total monthly volumes across spot and derivative markets fell to $1.4 trillion, down more than 60% from September 2022, according to London-based researcher CCData. Spot markets bore the brunt, with volumes down more than 70% at $272 billion.

 

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