CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data
Feb 19, 2025

Crypto Industry Requires Enhanced 24/7 Risk Management Post-FTX Collapse

1 min

The crypto ecosystem is evolving post-FTX collapse, but experts emphasize the need for improvement. Key insights from the "Views From Wall Street to Crypto" event at Consensus Hong Kong include:

  • Traditional finance (TradFi) players are increasingly entering the crypto space.
  • Gautam Sharma of Brevan Howard noted the progress in technology over the past 18 months but stressed the necessity for enhanced 24/7 risk management.
  • Counterparty risk is a major concern due to the lack of intermediaries in crypto, affecting arbitrage strategies.
  • Fabio Frontini from Abraxas Capital Management highlighted the importance of stress testing, particularly in perpetual futures markets.
  • Mike Kuehnel of Flow Traders pointed out the need for transparent innovation to build investor confidence and improve data availability.
  • Liquidity issues persist, with fragmentation across DeFi platforms hindering market stability despite improvements in order book depth for major cryptocurrencies.