Exchange News- FalconX states that the 18% ratio fell within its “counterparty exposure limits.”
- FalconX indicated that it had no exposure to Genesis, Alameda, or BlockFi.
FalconX, a cryptocurrency trading firm, announced on Thursday that it had a portion of its assets caught on collapsed crypto exchange FTX. According to the corporation, its assets locked on FTX account for only 18% of its unencumbered cash equivalents. This ratio was within their counterparty exposure limit.
FalconX insisted that it has had an impact this year and that FalconX remains one of the most trusted and proven partners for institutional investors. And the company’s volumes have increased by 80% or more month over month. And they have stated that it will continue to facilitate billions of dollars in daily trade volume for its clients.
It’s disappointing to see the continued impact of FTX’s fallout on the industry. In spite of this, FalconX is fortunate to be well capitalized and growing, 80%+ growth over the last month, trading billions daily.
See our most recent update here: https://t.co/CyyBDciiEP
— FalconX (@falconxnetwork) December 8, 2022
FTX Effect on Cryptomarket
And the corporation has noted that the crypto’s demise has resulted in many bankruptcies across the industry, but that the company is still robust.
The FTX 0% scenario assures that FalconX remains one of the best-capitalized corporations in digital assets. They also have decades of the runway and are highly liquid, with a 4% debt-to-equity. And the ratio and more than 80% of their balance sheet in regulated US institutions.
They also stated in the blog post that recent occurrences have proven their risk management strategy. They saw the market as risk agnostic and extend credit on the platform that is overcollateralized. They use real-time risk monitoring and work within the parameters of our counterparty exposure limits.
In addition, the corporation indicated that it had no exposure to Genesis, Alameda, or BlockFi.The rapid collapse of FTX has caused many companies and the market to encounter a decline, and the entire market has felt the impact of the collapse.
Source: https://thenewscrypto.com/falconx-admits-that-18-of-its-funds-are-blocked-on-ftx/