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Based on what financial statements do we know FTX was profitable? Also, the stole customer funds.
by hef19898 3y ago
Based on what financial statements do we know FTX was profitable? Also, the stole customer funds.
- bhouston 3y ago> Based on what financial statements do we know FTX was profitable? The crypto-exchange part I have read many times it was profitable. Running an exchange is a profitable endeavour as you just take a cut of all transactions. As long as you control your costs it is a money printer. The rest of FTX was full of fraud and Alameda was a money sink via unprofitable speculation. Also likely helping laundry money as well via poor KYC. Running an exchange is a great business though if you have the volume, doesn't matter if it is crypto or futures or stocks.
- play_ac 3y agoNo, crypto exchanges are only profitable as a result of massive wash trading and scamming. If they had to actually compete the margins would be hilariously low. Probably even lower than a typical bank because the product is just worse.