The fall of the FTX exchange in November this year has been tagged as the biggest crypto exchange and trader disaster ever. It is unprecedented to have the value of its FTT token to be wiped out by more than 90%, forcing the Chief Executive Officer to resign and declare bankruptcy after losing billions of dollars.

Hence in this exercise, the students are requested to go back to the fundamentals of money and explain in their own terms the below questions:-

1. What is a cryptocurrency and what is your view on its recent development?

2. How do you think can the collapse of the FTX exchange be avoided?