FTX Reduces Maximum Leverage From 101x To 20x
Sam Bankman-Fried, CEO of FTX, revealed that the crypto derivatives exchange is cutting the maximum leverage for its users to 20x.
According to him, the company made this decision in order to stimulate the development of responsible trading on the exchange. Since the leveraged segment of the exchange is small, this decision will affect minimum users.
The crypto community welcomed the news and noted that leverage could be further reduced to 5x.
Recently FTX bought back their stocks earlier sold to Binance. The CEO of the crypto exchange, Sam Bankman-Fried, explained this move by the need to enhance the company’s flexibility. In addition, their views of running the business are too different from those of Binance.