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FTX’s decline has been unprecedented and will continue to have a ripple effect on market participants. It has become clear that only a handful of high-level executives at FTX were aware of the underlying structural deficiencies within the exchange, but these events have proven that the accurate assessment of CEX risk is now more relevant than ever, with FTX’s insolvency shedding light on the hidden risks within these exchanges.
Utilising CryptoCompare's best-in-class data surveillance and monitoring tools, CryptoCompare is actively investigating ongoing developments in this still-unfolding situation.
The purpose of CryptoCompare's latest analysis, which is accessible below, is to take another look at the CEX landscape to:
- Describe and acknowledge the entity structure of CEXs.
- Provide clarity on how this will be taken into consideration in future iterations of the Exchange Benchmark.
- Ensure CryptoCompare’s commitment to providing a transparent and holistic assessment of the digital asset exchange landscape.
