Crypto Leverage Trading a ‘Major Problem’, Says Former FTX US President
Brett Harrison, the former president of FTX US, is set to roll out a new perpetual futures exchange in the coming weeks—but it won’t include markets on crypto.
In fact, the former FTX US executive told Decrypt he believes offering leveraged trading, where borrowed capital is used to multiply both gains and losses, on volatile crypto assets is “irresponsible” and becoming a “major problem.” His comments echo those from analysts who have recently raised concerns about excessive leverage in the crypto market following the flash crash on October 10, when a record $19 billion was flushed from the derivatives market.
Harrison’s new exchange, called Architect, will offer perpetual futures on traditional stocks, foreign…
