One year after the FTX collapse, what the crypto market learned

After the collapse of FTXa seismic event that shook the world of cryptocurrencies almost a year ago, it is essential to reflect on the key lessons What the crypto market learned from that pivotal fact for the ecosystem.

The fall of FTX, a sudden collapse of one of the main peers in the cryptocurrency market, highlighted the volatility and risks inherent in the world of cryptocurrencies.

This disaster had a significant impact, but brought valuable lessons to the market. From the critical importance of a solid liquidity management to greater awareness of regulatory issues, These lessons are shaping the future of cryptocurrency exchanges.

We will also discuss how best practices can lay the foundation to create a safer ecosystemtransparent and reliable that benefits to all involved and contribute to growth and stability continuous in the world of cryptocurrencies.

FTX: what its fall left behind

Recently, FTX obtained judicial approval to sell crypto assets for more than 3.4 billion dollars, which created anxiety in the cryptocurrency investment community and caused fluctuations in the market. However, the market appears to be recovering, suggesting that as the structured nature of FTX asset sales becomes better understoodinvestor confidence is returning.

As a last resortrisk management and periodic evaluation of systems are critical to the survival and success of cryptocurrency exchanges. Stress testing is crucial to understanding how systems will respond in extreme situations. After the collapse of FTX, It is vital that exchanges prioritize the continuous evaluation and correction of potential weaknesses and bottlenecks.

The good news is that the cryptocurrency market seems to be recovering. Bitcoin has regained some of its lost ground and is reaching the $35,000 mark.

Likewise, stress tests, in particular, are a key tool in this regard. Stress testing consists of subjecting the entire ecosystem of a bag, including its trading engine, order matching system and infrastructure, to extreme scenarios that simulate extreme market conditions. These scenarios may include rapid price swings, spikes in trading volumes or network failures.

The FTX incident showed that stress testing is not just good practice, but a necessity. Without proper stress testing, exchanges may not fully understand how their systems will respond in the event of duress. These unforeseen vulnerabilities can cause problems during market turbulence, including downtime, order execution failures, and massive losses for traders.

In the wake of the FTX crash, exchanges should prioritize regularly and rigorously evaluating their systems to identify and address any potential weaknesses or bottlenecks.