Since the fall of FTX, the crypto world has been buzzing. Admittedly, the majority of clients of this crypto exchange platform were institutions. Nevertheless, its collapse had negative impacts on all investors (small or large).
Another problem: many people confuse FTX and Bitcoin. However, these are two very different crypto platforms. This is what Salvadoran President Nayib Bukele explains.
FTX: a crypto exchange
Founded by deposed Sam Bankman-Fried, FTX is a company specializing in centralized cryptocurrency exchange. Its operations relate exclusively to derivatives and leveraged products. It is for this reason that most of FTX’s clients are institutions.
In his tweet, the Salvadoran president nevertheless underlines an important point: the FTX crypto platform has never practiced non-transparency and unfair management of its users’ funds. Nayib Bukele bases himself on this principle to affirm that the mode of operation of FTX differs from that of Bitcoin.
Bitcoin is the opposite of FTX!
According to Salvadoran President Bukele, Bitcoin was designed to avoid Ponzi schemes, bank trickery or even the collapse of Enron. According to him, it is a crypto protocol thought to prevent bailouts as well as wealth reallocations. He even goes so far as to state that no fraud is possible on Bitcoin. The same is true for any malicious behavior.
As a reminder, El Salvador was the first country to adopt bitcoin as legal tender in 2021. Today, this state is estimated to have acquired over 2,300 BTC. Despite the bearish trend in the crypto market (mainly due to the fall of FTX), El Salvador continues to hold on.
“FTX is the opposite of Bitcoin”! Not everyone agrees on this. Some people also disagree with the explanations provided by the Salvadoran president. We must nevertheless admit one thing: FTX and Bitcoin offer two different modes of operation. Decryption: Bitcoin is not at risk of crashing in the same way as FTX.
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