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FTX Collapse: Lessons for Investors

Motley Fool Money

Is There Anything Really Risk Free About Cryptocurrency?

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There is nothing truly risk free. Even buying a treasury technically has some risk to it. And so if you are providing funding to someone and they are paying you a relatively high rate for that, the only way economically they are able to pull that off is because they're able to do something that earns more money with those dollars or with that crypto. You have to question at a certain point the sustainability of that model and whether they can really continue to do it for years and years and years. Very few people have been able to.

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