Ftx Bankruptcy, Crypto Crisis After Giant Crash: What Happened

8 Billion Gap, Wrong Investment: So Ftx, a Giant in the Cryptocurrency World Collapses. Here are the possible consequences

Posted on: 11-12-2022 23:29

journalist and commissioner

A journalist with a passion for fact-finding, crime and pizza. A tobacco addict and caffeine addict, since 2016 he has been collaborating with Bufale.net and since 2018 he has been working for Optimagazine in the music department. He devours investigative books, logs, carbs, and fights anxiety disorder with his injections of metal and shuyjaz.

a bankruptcy It is set to go down in history, according to experts, with shame From FTXthe largest platform in Cryptocurrency Who announced in times of obese cows his intention to buy Goldman Sachs. But it’s all over: CEO Sam Bankman Fried He submitted his resignation and the company declared bankruptcy on Friday 11 November.

Ftx Failure: What Happened to the Crypto Giant

All this will happen in a few days. In context, the company has been estimated to have reached a value $32 billion It asserts itself as one of the most important digital asset exchange companies.

READ European stock markets shy, Tokyo +2.5% after Boj's turnaround

In fact, a third of the world’s cryptocurrency flows through Ftx, so much so that its stock has been considered blue chipIt is a safe investment. But suddenly, a hole 8 billion.

Crolla Ftx, the reference exchange in the cryptocurrency world. What will be the consequences?

sudden retraction

The first signs came with a tweet posted on November 7 Changpeng Zhaohead to BinanceIt is the first exchange company in the world. In fact, Binance shares the platform with Queen Piece Finally with Ftx.

Zhao announced, in a tweet, his intention to sell all Ftx tokens. It is not unusual for one exchange to own the tokens of another, because we are talking about an interconnected market.

So, Zhao confirmed what Coinbase had already predicted about the impending insolvency of Ftx, which would have taken a “wrong move” with Alameda Researcha digital currency company founded by Bankman-Fried himself.

The head of FTX allegedly made a risky investment with Alameda Research, which has capital consisting of “FTT tokens,” a cryptocurrency created by FTX itself.

serious investments, Unauthorized loans Finally collapse.

domino effect

Changpeng Zhao’s announcement of the sale of all FTX tokens caused a domino effect: Zhao’s word, in the cryptocurrency world, is sacred.

For this reason, investors have sought cover by freeing themselves of all FTT tokens, with Ftx now exhausted in terms of capital and confidence.

READ Italiana Stock Exchange, commenting on today's session (April 12, 2022)

Initially, the head of Binance offered to take over the entire Ftx company, then backed out shortly thereafter.

Consequences of Ftx Failure

The world of cryptocurrency has always been a parallel universe to that of the traditional financial market.

The failure of Ftx could have many consequences, such as growing distrust of the cryptocurrency system. In this regard, Eric Demuth of Bitpanda intervenes, as reported by “Repubblica”: “What happened is going to hurt. Too bad. And for a long time.”

<br />

Image source: iSTOCK

Ftx Bankruptcy, Crypto Crisis After Giant Crash: What Happened

journalist and commissioner

Ontario Public Service to Return to Full-Time Office Work by Early 2026

Ontario Government Breaks Ground on Second Ontario Line Tunnel in Riverdale

Brantford officials head to Ottawa for key municipal conference amid economic uncertainty

Ftx Bankruptcy, Crypto Crisis After Giant Crash: What Happened

8 Billion Gap, Wrong Investment: So Ftx, a Giant in the Cryptocurrency World Collapses. Here are the possible consequences

journalist and commissioner

Related Posts

Ontario Public Service to Return to Full-Time Office Work by Early 2026

Ontario Government Breaks Ground on Second Ontario Line Tunnel in Riverdale

Brantford officials head to Ottawa for key municipal conference amid economic uncertainty