Chaos in the cryptocurrency market
In less than a week, the 30-year-old businessman has been hailed as the modern-day “JP Morgan” as he surveys his digital empire, including billions of dollars of his wealth evaporating in the downward spiral that shook the foundations of the rewarding crypto industry , about a trillion dollars.
Last Thursday, FTX founder and crypto mogul on the brink of collapse Sam Bankman Fried apologized to investors and clients of his company, the exchange he founded in 2019.
CNN reported that outages are not uncommon in the opaque and largely unregulated world of crypto, but the impending collapse of the FTX platform recently represents a potential game-changer for an industry many critics say has been allowed to run for too long .
Last week CoinDesk, a cryptocurrency news site, published an article based on a leaked financial document from Alameda Research, Bankman Fried’s hedge fund, stating that the company’s business is on shaky financial footing and stating that the majority of its assets in FTT, the digital tokens are held by Alameda’s sister company FTX, which was seen as a red flag for investors as the two companies were separate on paper.
For its part, Binance, FTX’s biggest competitor, announced last Monday that it was liquidating $580 million worth of FTX holdings, sparking a firestorm of downturn that FTX didn’t have.
On Monday, concerns about Alameda and FTX increased in the broader cryptocurrency market.
But Pinkman tweeted, stressing that FTX and its origins are good.
Meanwhile, Fred Bankman’s personal wealth plummeted, falling 94% in a single day.
From more than $15 billion to just under $1 billion according to the Bloomberg Billionaires Index, the largest one-day loss the index has ever recorded.
The crypto markets have faced severe turmoil due to the series of events that “FTX”, which was considered one of the most important institutions just a few days ago, has faced and its digital currency “FTT” collapsed amid fears it expressed tweets on the Twitter -Platform of Binance Stock Exchange founding participant Changpeng Zhao.
Despite cutting its losses Thursday, bitcoin is down about 14 percent of its value so far.
As for the “FTT” currency, which is the main currency in “FTX,” it fell about 85% last week to trade at around $4.46 per unit.
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