I meant all the numbers involved in the FCX meltdown this one is worth remembering more than a million people and businesses may still be owed money it is a shocking statistic in a story that is full of them the top 50 FTX creditors.
Meanwhile I owed more than three billion dollars that is according to recent court filings none of them though are named so we don't know who they are multiple us lawmakers though have been reacting by asking Regulators to get to work helping protect crypto investors from this type of failure that includes congresswoman Maxine Waters.
She highlighted concerns over ftx's native token ftt and said that robust Federal oversight is needed the value of ftt crashed at the start of this Saga when binance said it was selling its Holdings the token have been trading at around 25 beforehand perhaps surprisingly it is still worth something now around 1.30 According to coinmarketcap.com which means the total market capitalization of the token is still some 460 million US Dollars crypto.com's native token Kronos also took a hit at the time it felt around 8 22 month live it picked up slightly in the aftermath in both cases questions had been raised over each exchange's Holdings of their own native tokens so should we now be worried about all of these native tokens authorities in South Korea have had some concern for a long time as forecast Danny Park explains South Korea has always been very Vigilant of its booming crypto industry in 2017 it banned ico's initial coin offerings and in 2021 they added anti-money laundering regulations that basically gave exchanges an ultimatum to meet their strict AML kyc regulations or just basically shut down so one of the new rules that local exchanges are not to list and broker the trade of their own issued crypto token authorities have recently been making sure that those rules aren't being followed Danny earlier spoke with Korea's Financial intelligence unit there have been rumors of some smaller exchange named flata listing what appears to be a native exchange token.
The FIU told me that their action is yet to be a full-fledged investigation but with the FTX collapse and contagion spreading throughout Korea and in Asia I think a bigger investigation is to come in the near future on to something that we should all be aware of well sort of black Infinity of blockchain product developer labrus has told forecast the ftt's issues were unique it appears as though the ftt token was created for the purpose of FTX to basically print money out of thin air um you know sort of strengthen or their balance sheets or inflate their balance sheets and you know FTX was the biggest buyer of this token and they were basically um you know moving this token back and forth between FTX and Alameda and so there was no real um you know a genuine sort of market demand for this for this token Lachlan says because that can help lower fees it does potentially help larger Traders but the value is still minimal when compared to the shared number of tokens that are out there he says that while binance is BNB started out in a similar Way by offering a way to get discounted fees it's since evolved.
The BNB token has this enormous utility this enormous distribution among users it's it's used to pay gas fees on their chain and it it is actually solving a real world problem which is we want to blockchain that has super low transaction fees and high throughput Lachlan reckons that the crypto space goes through two phases when issuing native tokens is concerned the first is where projects are not seen as being real web 3 contenders without being tokenized which is what happened during the 2017 initial coin offering bubble or after that Bubble Burst we moved into to this second phase where many products launched without tokens unless there was a good case for them to exist this is why all of the um D5 projects and layer 2 systems and ens and all of these you know really solid projects that came out of um you know the the 2018 bear Market most of those projects did not have token since then we've seen a return to projects launching tokens up front Lachlan reckons that's where the danger lies if you need to go out and pay someone to build the utility into your token then you should probably be questioning whether you need a token or not in the first place and you know what most projects do is they just say that oh well our token utility is if you want to use our protocol or you want to use our product you have to pay in our token but that's not utility that's just adding friction to your product.
