Does anyone remember the collapse of FTX? It faced withdrawal requests exceeding $6 billion within 72 hours. This event actually reflects a long-known phenomenon in the financial world that has now manifested in the cryptocurrency market. So, what is a bank run and why is it so important?

A bank run is simply when people lose confidence in a financial institution and start withdrawing their funds rapidly. In Turkish, it’s known as "bankadan kaçış" (bank run). It may sound simple, but it’s actually a serious threat to the economy. When customers of a bank try to withdraw their money simultaneously, the bank faces liquidity issues and becomes unable to operate.

To answer the question of what a bank run is, let’s look at the Alameda Research example. When news of financial misconduct spread, FTX users panicked. Trust broke down, and everyone tried to withdraw at the same time. The exchange started depleting its reserves. That’s exactly the definition of a bank run. In traditional banking systems, deposit insurance exists to prevent such situations, but there is no such protection mechanism in crypto exchanges.

Bank run scenarios in crypto exchanges usually occur for three reasons. First is trust concerns. If there’s news of a security breach or management uncertainty about an exchange, users start withdrawing their assets. Second is liquidity problems. When volatility increases or sudden price movements happen, people want to move to safer assets. Third is bankruptcy fears. Even if rumors about the exchange’s worsening financial condition spread, users act preemptively.

Understanding what a bank run is really means recognizing how sensitive the crypto market can be. The FTX example shows us that without a centralized structure, trust, and transparency, the system collapses very quickly. Factors like economic crises, high inflation, and political instability increase this risk. That’s why, when choosing an exchange, it’s not just about fast transactions or low fees, but also about the institution’s quality, security protocols, and sufficient reserves.

For crypto investors, understanding the risk of a bank run is critical to protecting our assets. Reliable exchanges maintain sufficient liquidity, ensure transparency, and uphold high security standards. To prevent incidents like FTX from happening again, we must be very careful in selecting exchanges and managing risks. The future of the crypto market depends on how we handle these systemic risks.