> Based on what financial statements do we know FTX was profitable?
The crypto-exchange part I have read many times it was profitable. Running an exchange is a profitable endeavour as you just take a cut of all transactions. As long as you control your costs it is a money printer.
The rest of FTX was full of fraud and Alameda was a money sink via unprofitable speculation. Also likely helping laundry money as well via poor KYC.
Running an exchange is a great business though if you have the volume, doesn't matter if it is crypto or futures or stocks.
No, crypto exchanges are only profitable as a result of massive wash trading and scamming. If they had to actually compete the margins would be hilariously low. Probably even lower than a typical bank because the product is just worse.
The crypto-exchange part I have read many times it was profitable. Running an exchange is a profitable endeavour as you just take a cut of all transactions. As long as you control your costs it is a money printer.
The rest of FTX was full of fraud and Alameda was a money sink via unprofitable speculation. Also likely helping laundry money as well via poor KYC.
Running an exchange is a great business though if you have the volume, doesn't matter if it is crypto or futures or stocks.