Making Lemonade Out of Distressed Crypto

In 2022, FTX, one of the largest crypto exchange companies, hit a financial pothole and ended up going bankrupt. This was a bummer for loads of folks who used their platform to invest in Bitcoin and other cryptos, like Bhagamshi Kannegundla — an IT whiz from India.

As soon as FTX waved the white flag, they stopped all trading and locked everyone's accounts. Meaning, Kannegundla and other investors couldn't get their hands on their cryptos. Talk about a bad day! But Kannegundla did not give up. He decided to stay in the game and sold his claim in the bankruptcy and threw the money back into more crypto - this time with Solana as his new go-to choice.

While it was a rough ride for some, others saw FTX's bankruptcy as cash in the bank. Another player named Thomas Braziel — whose job it is to broker bankruptcies — found the FTX situation to be a dream come true. Even when it was down and out, FTX had lots of money laying around.

Some folks are saying the FTX situation could turn out like Lehman Brothers — where everyone who had claims in the bankruptcy could end up getting their money back, eventually. Although it may take time. Because of that, a bunch of speculators are buying up bankruptcy claims, hoping to cash in when things get better.

The moral of the story? Crypto is still a wild ride, so be prepared for the ups and downs. But as the FTX story proves, even when things get rocky, there can still be opportunities to come out on top.

#distressed