As the CEO of FTX cryptocurrency exchange Sam Bankman-Fried said, the site decided to reduce the maximum leverage when trading from 101x to 20x.
FTX CEO Sam Bankman-Fried explained such a solution is in low demand for the use of large leverage. According to him, a very small proportion of users carry out transactions with high leverage. The average leverage is only 2X.
“We really believe that high leverage has a right to exist. But we don’t think this is an important part of the cryptocurrency ecosystem. And in some cases, this is even the unhealthy part of it. Again, a very small percentage of users will be affected by the limitation. And while users say they like being able to trade with high leverage, very few use it. We think it’s time to get away from this. Plus, we’ll be launching some cool new features soon, ”wrote Bankman-Fried.
He also stressed that lowering leverage and abandoning margin trading is the direction in which the cryptocurrency market is heading.
FTX recently raised $ 900 million in investment, making it the largest direct funding of cryptocurrency exchanges in history. The capitalization of the site has reached $ 18 billion.
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