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FTX pioneered a user-friendly collateral model that would eventually contribute to its downfall. Alameda Research’s balance sheet, as revealed by a CoinDesk report in November, was ladened with illiquid altcoins like Serum, Maps and FTT. This was then used as collateral on a series of loans, and when the market eventually slumped, the value of those altcoins depleted to a level that meant FTX could no longer honor customer withdrawals.
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