Significant losses were recorded by cryptocurrencies as early as Tuesday. That day was the worst for Bitcoin since mid-August.
The second largest cryptocurrency, ethereum, fell nearly 19% to $ 1,202 by noon on Wednesday.
On Tuesday, cryptocurrency giant Binance signed a non-binding deal to take over the non-US unit FTX to help cover a liquidity crisis at the rival exchange. The proposed deal between the high-profile rivals follows weeks of FTX financial health speculation, fueled over the weekend by Binance CEO Chinese-Canadian Changpeng Zhao.
Withdrawals from FTX jumped to $ 6 billion (CZK 145 billion) in the 72 hours leading up to Tuesday’s deal. This has raised questions about the solvency of one of the largest cryptocurrency exchanges in the world. FTX and Binance have not disclosed the terms of their deal, and the markets are facing renewed uncertainty over whether it will pay off.
FTT’s native coin, which is traded on FTX, wiped out 72% of its value on Tuesday. It compounded its losses Wednesday, again losing more than 70%, according to data from the Coinnmarketcap website.
Bitcoin and other virtual currencies
There are many virtual currencies. One of the oldest and currently most popular are the so-called bitcoins. They were created as early as 2009, but have enjoyed greater popularity in recent years. This currency was created so that it cannot be influenced by any government or central bank.
Cybercoins are “minted” by a computer network with specialized software programmed to release new coins at a constant but steadily decreasing rate. The number of coins in circulation is expected to eventually reach 21 million, which should be around 2140.
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