My own curiosity has shifted to “how did they get so big in the first place?”, which is basically a version of “why did so many big investors put their money in?”
My suspicion is that a lot of it was about the expectation of political backing: FTX was going to be the hub of a new, government-approved crypto industry. This is the obverse of the conspiracy theory that FTX was meant to blow up and discredit decentralized crypto, paving the way for a regulator-approved digital dollar backed by the existing mega-banks.
My own curiosity has shifted to “how did they get so big in the first place?”, which is basically a version of “why did so many big investors put their money in?”
My suspicion is that a lot of it was about the expectation of political backing: FTX was going to be the hub of a new, government-approved crypto industry. This is the obverse of the conspiracy theory that FTX was meant to blow up and discredit decentralized crypto, paving the way for a regulator-approved digital dollar backed by the existing mega-banks.