CoinKarma Founder Benson Sun Reflects on FTX Collapse, Sees Possible Bitcoin Bear Market in 2026

CoinKarma founder Benson Sun was hit by FTX’s bankruptcy filing in November 2022 before returning to the market and developing quantitative trading tools. His experience highlights the risks that centralized exchange failures pose to traders and has drawn attention to his approach to cycle analysis and risk management. The interview did not disclose the amount of his losses.

Using data, Sun reviewed the crypto market’s sharp decline in October 2025 and examined how capital flows and derivatives market structures intensified the selloff. He said Bitcoin could remain in a bear market in 2026. A fall in the CME Bitcoin futures basis to extremely low or negative levels would be an important signal of what he called a “generational bottom,” Sun said.