Billionaire investor Ken Griffin worried the FTX collapse would impact crypto investors, most of whom are Gen Z investors
Billionaire investor, Ken Griffin, has shown deep concern for the crypto investors, most of whom are twenty to forty-year-olds, after the historical FTX collapse.
The founder and CEO of Citadel LLC, a Miami-based hedge fund, is worried that this event could have a lasting impact that will make generations wary of investing in the future.
Griffin talks about the impact the FTX collapse will have on investors
Speaking to Bloomberg New Economy Forum on Tuesday, November 15, Ken Griffins called FTX a travesty in the history of financial markets. He went on to say that this collapse would directly impact hundreds of thousands of people who would lose billions of dollars and their confidence in financial markets.
This lack of trust will create a generation that’s wary about investing and, as a result, will have put aside little to nothing for their retirement.
According to Griffin, younger people will also be hesitant about investing in stocks and bonds after losing their savings in crypto, which could create a huge problem.
Over the last two years, he stressed that American investors have been burnt by the decline in market cap and crypto and that this calls for investor protection.
Griffin also criticized government regulators for their unending turf war on the crypto market, where unnamed agencies keep fighting over who owns what.
The solution, Ken Griffin said, is gaining back the investor trust for crypto and other traditional investments.
The historic FTX collapse
On November 11, FTX, one of the largest cryptocurrency exchanges worldwide, declared bankruptcy after a liquidity crisis. This has created a massive meltdown where investors are left worrying about their money.
It is believed that while some people will get their money back, it won’t be everything. This is because crypto firms like FTX provide their customers with little to no special protections.
Stay in touch with the current business and economic happenings in Miami and worldwide by subscribing to Calle Ocho News.