Why is FTX's balance sheet considered unfavorable in the context of cryptocurrency?

3 answers

• Feb 19, 2022 · 3 years ago
  FTX's balance sheet is considered unfavorable in the context of cryptocurrency due to its high exposure to risky assets. The company has a significant amount of leverage, which increases the potential for losses in case of market downturns. This makes investors and traders cautious about the stability and reliability of FTX's financial position.
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• Feb 19, 2022 · 3 years ago
  One of the main concerns with FTX's balance sheet is its large holdings of illiquid assets. These illiquid assets can be difficult to sell quickly, especially during times of market volatility. This lack of liquidity raises concerns about FTX's ability to meet its financial obligations and can lead to increased risk for investors.
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• Feb 19, 2022 · 3 years ago
  In comparison to other cryptocurrency exchanges, FTX's balance sheet is considered unfavorable because of its high debt levels. The company has taken on significant debt to fund its operations and expansion, which increases its financial risk. This debt burden can limit FTX's flexibility and ability to adapt to changing market conditions.
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