Ftx bankrupt, cryptocurrency crisis after the collapse of the giant: what happened

A hole of 8 billion, a wrong investment: so Ftx collapses, giant in the world of cryptocurrencies. Here are the possible consequences

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A bankruptcy destined to go down in history, according to experts, with the failure from FTXthe largest platform of cryptocurrencies who in times of fatter cows had also announced his intention to buy the Goldman Sachs. But it’s all over: the CEO Sam Bankman-Fried he resigned and the company filed for bankruptcy on Friday 11 November.

The failure of Ftx: what happened to the cryptocurrency giant

All this would happen in a few days. In the context, according to estimates the company had reached a value of 32 billion dollars confirming itself as one of the most important companies for the exchange of digital assets.

In fact, a third of the world’s cryptocurrencies flowed through Ftx, to the point that its shares were considered blue chip, which is a safe investment. Suddenly, however, a hole of 8 billion.

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

The sudden decline

The first signs came with a tweet published on November 7 by Changpeng Zhaohead of Binance, which is the first exchange company in the world. In fact, Binance shares the podium with Coinbase and finally with Ftx.

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

Zhao, therefore, confirmed what Coinbase had already predicted on the imminent insolvency of Ftx, which would have taken a “false step” with Alameda Researcha digital currency company founded by Bankman-Fried himself.

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

Dangerous investments, undeclared loans and finally the collapse.

The domino effect

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

For this reason, investors ran for cover by freeing themselves from all FTT tokens, with an Ftx now depleted in terms of capital and trust.

At first, the head of Binance offered to acquire the entire Ftx company, only to step back shortly thereafter.

The consequences of the failure of Ftx

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

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



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Photo source: iSTOCK



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Ftx bankrupt, cryptocurrency crisis after the collapse of the giant: what happened


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