FTX founder SBF said in a post that FTX was a valuable company a month ago. FTX has a daily trading volume of about $10 billion to $15 billion, an annual revenue of about $1 billion, and an equity value of up to $40 billion.
FTX is known as a model of efficient operating companies and is the darling of Silicon Valley. But overconfidence and carelessness lead to problems brewing. A historic crash followed in the days that followed, with most related assets plummeting more than 50%.
At the same time, there was a run, with roughly 25% of client assets being withdrawn every day. Leverage is as high as $13 billion, not $5 billion as previously thought. High leverage, a run on funds, and a total collapse in asset values all happened suddenly and simultaneously.
