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Cumberland: FTX Bankruptcy Triggered Some Important Market Structure Changes

According to cryptocurrency trading company Cumberland, the collapse of FTX last week will lead to substantial changes in market structure, including a departure from the all-in-one platform centralization model.

Cumberland: FTX Bankruptcy Triggered Some Important Market Structure Changes 2

Cumberland’s Head of Trading, Jonah Van Bourg, said that the different aspects of cryptocurrency spot trading have been moving toward a paradigm of centralized, all-in-one platforms. Van Bourg specifically referred to lending, clearing, custody, and settlement.

According to Van Bourg, the cryptocurrency market structure will likely resemble foreign exchange markets. In foreign exchange markets, assets and capital are not kept on centralized exchanges.

The collapse of FTX is an undesirable consequence for any crypto company. Currently, the exchange has no further information on the number of remaining customer holdings.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.