Binance eliminated one of its main competitors in a seemingly perfectly orchestrated move that caused a tsunami across the crypto space and sent Bitcoin to new market lows.
Cryptocurrency exchange FTX has been under near-constant public scrutiny since it was revealed that Alameda Research, a cryptocurrency trading firm owned by FTX founder Sam Bankman-Freed (SBF), holds an excessive stake in the token. FTT on its balance sheet.
Binance founder Zhao “CZ” Changpeng, citing Alameda’s excessive exposure to FTT risk, announced over the weekend that its cryptocurrency exchange would liquidate “all remaining FTTs in our accounts,” adding clarification that this liquidation will be conducted in a way that minimizes “the impact on the market”. Of course, given the ongoing carnage that has engulfed bitcoin and other major cryptocurrencies, the accuracy of this certainty has proved insufficient in hindsight.
For its part, FTX has attempted to mitigate the damage by tweeting that it can easily cover all client assets, with GAAP audits confirming over $ 1 billion in excess cash. FTX has also offered to purchase Binance’s FTT assets on a private exchange. By then, however, the killing blow had already been dealt. As fears of “breaking the bank” began to rise, FTX began to cope with increasing withdrawal requests. In fact, the exchange had a record $ 6 billion in withdrawals in the past 72 hours, according to the SBF.
Bitcoin miners have been in capitulation territory for some time now, as the Puell report shows. The latest price drop is likely to lead to capitulation, with miners dumping their bitcoin holdings just to keep working.
Other cryptocurrencies also did not lag behind and fell in price after bitcoin: Ethereum’s rate dropped 6% in the last day and Elon Musk’s favorite cryptocurrency dropped 12%.
Analyst Ton Weiss, who predicted the collapse in the price of bitcoin in 2018, suggested that the fall of the main cryptocurrency from current levels could reach 10-11 thousand dollars.
