In a recent interview, FTX co-founder Gary Wang provided insight into how FTX managed to generate the display figure for the collapsed crypto exchange’s insurance fund. Wang explained that FTX adopted a multi-step process to accurately calculate the display figure, which represents the insurance fund’s value.
According to Wang, FTX first assessed the value of the assets in the insurance fund at the time of the exchange’s collapse. This involved analyzing the different cryptocurrencies, their prices, and the quantities held in the fund. Next, FTX conducted an analysis of the outstanding liabilities and claims from affected users. By combining these two factors, FTX was able to calculate the display figure for the insurance fund, providing transparency to its users and ensuring that the fund was properly managed.
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