The bankruptcy of Sam Bankman-Fried’s FTX.com put an end to questions about its survival and opened a panoply of new ones, most urgently: how far will the influence of its collapse reach?
Overstating FTX’s heft in the cryptosphere is difficult. From blue-chip venture investors to celebrity endorsements, from Silicon Valley to Washington, from lenders to yield farmers and market makers, the three-year-old firm cut a wide swath through online commerce. Getting a handle on the repercussions of its demise is apt to take months.
“The big fear right now, that indeed seems to be materializing, is a contagion effect,” said Greg