FalconX Says Finances Still Solid Despite Exposure to Bankrupt FTX

FalconX, a crypto brokerage, and digital assets trading firm has disclosed its assets to its investors and stakeholders.

The brokerage firm stated via a news update that its finances are still strong while admitting that the current dwindling crypto market and the fallout of bankrupt FTX have created uncertainty in the blockchain industry which has invariably created panic among investors and stakeholders.

FalconX highlighted that its trading volumes have risen over 80% on a monthly basis and also recorded billions of dollars in daily trade volumes for its customers.

FalconX has also admitted that its financial exposure in the FTX platform represents only 18% of its unencumbered cash equivalents.

FalconX claims it is still one of the best trading firms for institutional investments, adding that it is still going to continue running its operations even without the recovery of locked-up funds from the FTX exchange. FalconX says it is very liquid with a 4% debt-to-equity ratio with over 80% of our balance sheet in regulated U.S. banks.

FalconX is a major player in the blockchain industry. The firm announced the launch of FalconX360 in September which is the first and only platform in the industry that provides institutional investors access to a unified cross-margin capability across their crypto Investments.

The Blockchain Industry Continues to Thrive

The blockchain ecosystem is still receiving support from key industry players and stakeholders despite the ongoing financial crisis.

For instance, Gate.io recently launched a recovery fund to support the industry amidst the collapse of the bankrupt FTX platform.

Gate.io said it is contributing $100 million in funding to enable crypto businesses that are struggling with their finances to develop strategies on how to adapt and overcome their current predicament.

The funds are not limited to only partners of Gate.io; partners from other platforms can also receive the funding. Each crypto business can only receive $10 million as long as its needs are within the scope of the fund’s risk control.

FTX’s LedgerX says it will make available $175 million to be used in the bankruptcy proceedings. The money will eventually be used to pay up debts owed to FTX creditors.