Rapid Insights: FTX Collapse Largely Spares NFT Treasuries

Following the bank run on FTX last week, the beleaguered centralized exchange filed for Chapter 11 bankruptcy protection on November 11th. In the wake of the black swan event that caused a spiraling liquidity crisis, the juggernaut’s total liabilities and liquid assets are currently estimated to be $8.9bn and $900mm, respectively.

As a consequence, the collateral damage that may arise from the cascading effect of this unprecedented collapse could extend well beyond its core circle of influence. In fact, the impending contagion effect might potentially strike at the heart of the NFT market. As The Block Research previously investigated, a decent chunk of NFT projects have transferred their mint revenues to centralized exchanges.