What if FTX never collapsed? It’s a question that still haunts the crypto world, and the answer uncovers a dramatically different financial universe—one where unregulated power could’ve grown, unchecked risks might’ve soared, and investor protection might have remained an afterthought.
This blog explores that alternate reality in depth—so you don’t have to read 10 other articles. From investor psychology and government regulation to tech innovation and market trends, you’ll find everything you need to know right here.
This article is designed to meet your goal—getting a complete understanding of what if FTX never collapsed, without needing to bounce between sources.
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Why the FTX Collapse Mattered
Before exploring the “what if,” let’s briefly look at what did happen.
FTX was once the second-largest cryptocurrency exchange in the world. In 2022, it crumbled under allegations of fraud, misuse of customer funds, and lack of internal controls, leaving over $8 billion in losses.
Its CEO, Sam Bankman-Fried (SBF), was portrayed as the savior of crypto—until he became its biggest cautionary tale.
1. Global Crypto Adoption Could Have Skyrocketed (Too Fast)
What if FTX never collapsed? First, adoption would have skyrocketed:
- With big names like BlackRock and Sequoia backing FTX, more institutions would’ve entered the space.
- Retail investors would have felt too safe.
But rapid, unchecked adoption might have led to massive bubbles. Without FTX’s collapse as a warning sign, people might have over-leveraged themselves without understanding the risks.
2. Industry-Wide Transparency Would Have Lagged
FTX’s fall triggered a wave of proof-of-reserves practices and internal audits by competing exchanges.
Without that collapse:
- Platforms may have continued opaque accounting.
- User funds would’ve been more vulnerable.
So, if you’re wondering what if FTX never collapsed, the likely answer is: transparency would have taken a backseat.
3. Sam Bankman-Fried’s Influence Would Have Grown—Dangerously
SBF had begun lobbying U.S. and international regulators:
- He donated millions to political campaigns.
- He tried shaping crypto laws to favor centralized exchanges.
In a world where FTX never collapsed, he might have controlled the direction of crypto regulation, potentially endangering consumer rights.
4. DeFi Could Have Been Suppressed
As a centralized powerhouse, FTX might have stifled decentralized finance (DeFi):
- Retail users would have continued trusting centralized platforms.
- DeFi innovation would’ve slowed due to lack of demand.
Ironically, the collapse of FTX pushed people toward DeFi, hardware wallets, and self-custody.
5. Risky Investor Behavior Would Have Exploded
Let’s say FTX continued its rise:
- More people would YOLO into unregulated exchanges.
- The “get-rich-quick” culture would thrive unchecked.
Without the FTX collapse, investors wouldn’t have learned hard but valuable lessons about due diligence, risk management, and counterparty exposure.
6. Crypto Regulations Would Still Be on Ice
FTX’s downfall gave global governments a reason to act:
- U.S., Europe, and Asia accelerated crypto frameworks.
- More attention was given to protecting retail users.
But what if FTX never collapsed? Regulations might still be sitting in draft mode, and many users would remain exposed to irreversible financial fraud.
7. Crypto Would Still Be Pop Culture’s Darling
FTX was backed by:
- Tom Brady, Steph Curry, Gisele Bündchen
- Sponsorship deals like the Miami Heat Arena
Had the company not collapsed, crypto might still be seen as a celebrity-fueled gold rush, drawing in uninformed investors chasing hype over substance.
Final Verdict: Would a World Without the FTX Collapse Be Better?
At first glance, what if FTX never collapsed sounds like a dream scenario—more adoption, more money, and more trust.
But look deeper.
The collapse acted like a painful but necessary immune response. It cleansed the market of bad practices, forced conversations about security, self-custody, and compliance, and encouraged smarter investment behaviors.
In short: FTX’s survival might’ve kept us blind longer—and the eventual fall would’ve been even worse.
Top 5 FAQs About “What If FTX Never Collapsed
1. Would FTX be the top exchange today if it hadn’t collapsed?
Most likely. It had momentum, partnerships, and capital. But unchecked power might have led to even greater abuse.
2. Would Bitcoin and Ethereum be priced higher today?
Possibly in the short term, but without transparency and reform, prices might’ve crashed even harder later.
3. Did FTX’s collapse prevent a bigger crisis?
Yes. It acted as a red flag, preventing billions more from being misused or lost in the future.
4. Would DeFi adoption be lower today?
Almost certainly. FTX’s fall pushed users toward decentralized platforms and cold wallets.
5. Did regulators speed up because of FTX?
Absolutely. The collapse forced urgent action and highlighted the dangers of unregulated exchanges.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author and should not be taken as investment advice. Do your own research before making any investment decisions.
