News from the NOS•
The largest cryptocurrency exchange in the world, Binance, is looking to acquire the FTX forum trading platform, which is also in the top 10 largest cryptocurrency exchanges. It has long been rumored that FTX was in trouble. The proposed acquisition will result in a drop in the price of bitcoin and ethereum. Bitcoin’s price fell 10-14% to $ 18,000.
“The result is greater centralization in the world of cryptocurrencies, and cryptocurrencies were not created for that,” says Teunis Brosens, a cryptocurrency expert at ING. “Investors seem panicked over the rumors of FTX’s financial woes. Anyone in the cryptocurrency industry knows how volatile it can be. So the price drops aren’t that bad for me.”
Furthermore, it remains to be seen what left over from FTX. Binance chief Changpeng Zhao announced the acquisition with the caveat that he wanted to research the books first. “As customers are leaving FTX, it remains to be seen whether the acquisition will go through.”
Exactly one year ago, most cryptocurrencies were still in great condition. Bitcoin was worth nearly $ 70,000. But this spring, cryptocurrency prices plummeted, partly because stablecoin groundUSD imploded and crypto bank Celsius froze its assets.
“Investors have since been shocked and interest and enthusiasm for cryptocurrencies has been lost,” said Brosens. “Since then, the market looks pretty stable. Stable, but pretty low. It’s been the winter of cryptocurrencies since spring. And now that another major player has fallen, you see investors are reacting to that and prices are falling again. . “
Previously esteemed research agency Kantar that 1.6 million Dutch have invested money in cryptocurrencies. There are hardly any rules in the cryptocurrency market and investors are less protected by regulators than, for example, trading in stocks.
