The fall of FTX was inevitable. The writing was on the wall for FTX, one of the largest and most popular cryptocurrency exchanges, when it was revealed that the company had been losing money hand over fist since its inception. The company's CEO, Sam Bankman-Fried, admitted as much in an interview with The Block, saying that FTX had been running at a deficit since day one. This revelation came as a shock to many in the industry, as FTX was one of the few exchanges that was actually profitable.
The news of FTX's impending demise came as even more of a shock when it was revealed that the company had been bought out by another exchange, Binance. Binance, one of FTX's chief rivals, had been looking to expand its dominance in the cryptocurrency exchange space and had been eyeing FTX for some time.
The acquisition of FTX by Binance is a deathblow to the company, as it is highly unlikely that FTX will be able to compete with Binance going forward. FTX was a popular exchange due to its innovative products and features, but it was ultimately undone by its own financial recklessness.
The company's decision to run at a loss in order to gain market share was a risky gamble that didn't pay off, and now FTX is paying the price.