7 recorded changes
Want your article here?
Promote with Leviathan NewsFormer FTX US president Brett Harrison has publicly criticized the practice of offering ultra‑high leverage in crypto derivatives trading—sometimes up to 1,000x—arguing that it is “irresponsible,” destabilizes markets, and leads to predictable harm for retail traders. In comments highlighted around the launch and evolution of his new firm Architect Financial Technologies, Harrison has said that exchanges should align more closely with traditional derivatives standards, where margin requirements and risk controls are designed to prevent rapid wipeouts and systemic cascades. He frames extreme leverage as both a consumer‑protection issue and a structural market‑risk problem, noting that liquidations triggered by tiny price moves can exacerbate volatility and erode trust in digital asset markets. Harrison’s company Architect has positioned itself as a more conservative, infrastructure‑style player that bridges traditional finance and digital assets, rather than a retail-focused, high‑leverage exchange. Architect offers tools and a single interface for professional and institutional traders to access multiple venues across spot and derivatives, while reportedly capping leverage at 25x on traditional assets—far below the levels promoted on many offshore crypto platforms. The stance matters in the post‑FTX environment: regulators in the US and elsewhere are scrutinizing crypto leverage, and a prominent former FTX executive openly calling 1,000x leverage “harmful” underscores a shift toward tighter risk management and more traditional market standards in the design of new trading venues.
AI-generated background, compiled from web sources — not editorial content.
𝕏/@WuBlockchain ·
The Block ·
Coindesk ·
𝕏/@FTX_Official ·
The Block ·
CoinTelegraph ·
𝕏/@WuBlockchain ·
The Block ·
Coindesk ·
𝕏/@FTX_Official ·
The Block ·
CoinTelegraph ·
🚀 Love DeFi? Ready to dive in and start earning $SQUID while making an impact?