Please enable JS and disable any ad blocker
Read More
Nine years ago today, the world was rocked by news of one of the biggest financial disasters to ever strike. On February 17, 2011, the once-dominant Bitcoin exchange, FTX, went offline with little to no warning, sending shockwaves through the financial system.
Established in 2009, FTX was one of the first digital currencies to exist, with the idea that it could be used to buy, sell, and trade goods and services online. Its value was far lower than traditional currencies and it gained significant traction in the early days of the digital currency revolution.
However, what had initially been seen as an opportunity to democratize financial services soon turned into disaster. Over the following weeks and months, users of FTX reported difficulties in withdrawing their funds, with some claiming that their accounts had already been drained.
In early March 2011, it was reported that FTX had essentially gone bankrupt, citing a “serious technological problem”, later revealed to have been the result of a hacking attack. It is believed by some experts that the creators of FTX had deliberately created a ” backdoor ” system which allowed hackers to gain access to the funds. This coupled with a lack of proper regulation of the space led to the disaster.
The consequences of this crash were far-reaching, with many of the users losing all of their money. As a direct result of the FTX crash, public trust in cryptocurrencies took a significant hit, and the industry was rocked to its very core.
Today, nine years on since the collapse of FTX, the outlook has luckily improved with the introduction of appropriate regulations and other safeguards. Nevertheless, the failure of FTX serves as a reminder to the industry of the importance of safety and security in the world of digital currency investments. Not only that, but it stands as a warning to investors everywhere to be careful when considering where to put their money.
