These days, the capital markets are facing a huge level of scrutiny. Ever since the COVID pandemic, new retail investors and traders have brought investment dynamics into the spotlight.
In this article, we’ve gathered some of the most discussed topics among retail investors and trader communities and made some connections.
FTX
Sam Bankman-Fried co-founded Alameda Research, a company that acted as a quantitative trading firm, in 2017. A few years later, Bankman-Fried decided to start the cryptocurrency exchange, FTX, to fund Alameda Research’s initiatives.
Figure 1: Bankman-Fried decided to start the cryptocurrency exchange, FTX, to fund Alameda Research’s initiatives.
Forbes
Within a few years, FTX had become one of the top three largest crypto exchanges in the world. At one point, it was even the largest by volume, with over 1 million users.
However, the criminal misuse of its customers’ funds causes a major crisis that many experts have compared to the notorious Enron scandal.
FTX was once endorsed by celebrities like Tom Brady and Stephen Curry. But now it has been shut down for selling unregistered securities. And Bankman-Fried has been thrown into jail.
According to some legal experts, FTX was taking part in an investment fraud that pays existing investors with funds collected from new investors and constitutes a…
Ponzi Scheme
This type of scheme was named after Italian con artist Charles Ponzi, who tricked victims into believing that their profits were coming from a…
