FTX Collapse Explained | The Gold Spot

The economic news has been overtaken by the tragic downfall of the FTX crypto exchange and the tens of billions of dollars that followed the once-revered crypto giant down the drain. The repercussions are being felt throughout all financial markets.

FTX soared onto the crypto scene as one of the highest-valued exchanges despite being just a few years old. The platform’s equally novice founder, Sam Bankman-Fried was heralded as the crypto world’s wunderkind boasting a net worth in the tens of billions at only 29.

While investors mistakenly assumed their assets were safe in the exchange, FTX founders were spending their users’ funds on luxury real estate, democrat party donations, and other personal escapades.

Within just 36 hours, FTX suffered the largest bankruptcy in history deflating from a net worth of $32 billion to zero. This catastrophic crash left investors scrambling to salvage what little of their initial investments were still left.

This fiasco highlights the importance of knowing where you invest your money, where the assets are behind held, and who controls the assets. Investors looking for the greatest control possible over their assets are flocking to physical gold and silver.

Physical gold and silver are reliable stores of value and have a proven track record against inflation. These assets don’t expose investors to any counter party risk as there’s no third party involved. You physically own the assets in forms of coins and bullion bars.

Watch the video to hear what Scottsdale Bullion & Coin Advisors Damian White & Todd Graf have to say about the FTX collapse, why investors are diversifying, and how precious metals provide an answer.