FTX, a prominent exchange, experienced a collapse in November 2022, spanning over ten days. The catalyst for this downfall was the revelation by CoinDesk, a cryptocurrency news site, which disclosed that a significant portion of digital assets was held by a quantitative trading company, Alameda Research, led by Bankman-Fried. Following this disclosure, numerous customers and investors withdrew their funds from the exchange, leading to its bankruptcy and insolvency.

This article aims to explore the causes and aftermath of the FTX crash, along with the survival and recovery of three altcoins: Solana, Chainlink, and OKB.

Looking back at the FTX Crash

The sudden demise of FTX in 2022 sent shockwaves throughout the crypto industry, instigating widespread distrust among top crypto services and the general public associated with the exchange. FTX, previously the third-largest cryptocurrency exchange, faced a fallout that extended across legal proceedings, regulatory scrutiny, and ongoing efforts by investors to recover lost funds. Bankruptcy filings revealed FTX's liabilities and assets, each ranging from $10 billion to $50 billion.

The surge in customer withdrawals, driven by concerns over valuation practices and the close relationship with Alameda, led to FTX's bankruptcy and disrupted the volatile cryptocurrency market, causing billions of dollars in losses and pushing its valuation below $1 trillion. This collapse marked one of the most significant blows in the history of crypto exchanges, deterring cautious investors from further engagement in the market.

Post-Crash Developments in the Crypto Market

Following the collapse of FTX, several cryptocurrency exchanges, including Crypto.com, underwent downsizing due to increased customer withdrawals. Additionally, crypto lenders and financial institutions, such as Celsius, Genesis Global, and BlockFi, faced legal proceedings and bankruptcy liquidations for extending massive undercollateralized loans to Alameda Research and FTX, neglecting the associated risk profiles.

Regulators responded by calling for greater government intervention in crypto usage, both domestically and internationally. Law enforcement agencies tightened scrutiny over crypto activities and restricted exposure to traditional markets. While investors and customers continue to recover from their losses, efforts have been made to reclaim lost funds through various means, including legal actions and asset tracing.

The Triumph of Three Altcoins

Despite the turmoil caused by the FTX crash, Solana, Chainlink, and OKB emerged as winners by exhibiting resilience and recovery in the aftermath.

Solana initially suffered a significant decline, dropping by over 53.8% following the collapse of FTX. However, it managed to recover as it distanced itself from Alameda Research and witnessed increased adoption for various applications, leading to a surge in demand and price for SOL tokens.

Chainlink also experienced a decline but was less affected compared to other cryptocurrencies. It witnessed a sharp recovery post-crash, driven by development updates on its protocol and growing adoption among retail and institutional investors.

OKB, the native token of OKX exchange, demonstrated stability and resilience, benefiting from the losses incurred by its competitors. It experienced significant price gains after the FTX collapse, showcasing its potential as a stable investment option.

Conclusion

Despite the adverse impact of the FTX crash on the overall crypto market, Solana, Chainlink, and OKB emerged as resilient assets, experiencing recovery and demonstrating their potential for investors. While concerns over crypto stability and security persist, these three cryptocurrencies have positioned themselves as promising investment channels in 2023 and beyond.

The broader implications of the FTX crash on the crypto market remain uncertain. However, factors such as blockchain development, price rallies, increasing demand, and growing adoption continue to drive cryptocurrencies to new heights in 2023.