Crypto Exchange FTX to Lower Leverage Limit to 20X, CEO Sam Bankman-Fried Says

Fazzaco learned that crypto exchange FTX has intended to cut leverage limit to 20x from 100x, according to its CEO Sam Bankman-Fried.

Sam said that high-leverage trading makes up a small percentage of the exchange's trading volumes and is only used by a small portion of its user base. Additionally, he pointed out that the average amount of leverage used on the exchange is only around 2X.

Wanna Know How to Reach Our Audience of Millions at Fazzaco?​

"And while we think that many of the arguments about high leverage miss the mark, we also don't think it's an important part of the crypto ecosystem, and in some cases it's not a healthy part of it," he added.

Sam argued that this is the direction the crypto industry is heading in, claiming his exchange is making the first step.

"Again, this will hit a tiny fraction of activity on the platform, and while many users have expressed that they like having the option, very few use it," he said. "And it's time, we think, to move on from it."

​FTX recently raised $900 million​ in the latest Series B funding round, which represents one of the largest raises for a crypto company. The company’s valuation currently stands at $18 billion. This new financing round will expand FTX's global presence, product offerings and user base, and accelerate the company's growth.