Fri, March 29

FalconX Admits That 18% Of Its Funds Are Blocked on FTX

The rapid collapse of FTX has caused many companies and the market to encounter a decline, and the entire market has felt the impact of the collapse. Exchange News
  • FalconX states that the 18% ratio fell within its “counterparty exposure limits.”
  • FalconX indicated that it had no exposure to Genesis, Alameda, or BlockFi.

FalconX, a cryptocurrency trading firm, announced on Thursday that it had a portion of its assets caught on collapsed crypto exchange FTX. According to the corporation, its assets locked on FTX account for only 18% of its unencumbered cash equivalents. This ratio was within their counterparty exposure limit.

FalconX insisted that it has had an impact this year and that FalconX remains one of the most trusted and proven partners for institutional investors. And the company’s volumes have increased by 80% or more month over month. And they have stated that it will continue to facilitate billions of dollars in daily trade volume for its clients.

FTX Effect on Cryptomarket

And the corporation has noted that the crypto’s demise has resulted in many bankruptcies across the industry, but that the company is still robust.

The FTX 0% scenario assures that FalconX remains one of the best-capitalized corporations in digital assets. They also have decades of the runway and are highly liquid, with a 4% debt-to-equity. And the ratio and more than 80% of their balance sheet in regulated US institutions.

They also stated in the blog post that recent occurrences have proven their risk management strategy. They saw the market as risk agnostic and extend credit on the platform that is overcollateralized. They use real-time risk monitoring and work within the parameters of our counterparty exposure limits.

In addition, the corporation indicated that it had no exposure to Genesis, Alameda, or BlockFi.The rapid collapse of FTX has caused many companies and the market to encounter a decline, and the entire market has felt the impact of the collapse.

A passionate writer who  is keenly exploring crypto and Blockchain loves to know about new things and exploring what is happening in world.