© Reuters.
Investing.com – A violent wave of losses erupted in the market today, Tuesday, amid news of a possible new bankruptcy that could rock the cryptocurrency market.
Losses emerged on the potential bankruptcy of Alameda Research, with a subsidiary of FTX, FTT and SOL for sale.
Meanwhile, the price fell to its lowest level in two weeks, as news of the bankruptcy drained the price of Bitcoin in what analysts described as “mass withdrawals indicating evaporation of liquidity.”
The data showed that Bitcoin’s price showed that BTC / USD fell to $ 19,351 to its lowest level since October 25, surpassing 20,000 levels.
The current downturn has hit the prices of the 100 largest digital currencies by market cap.
It’s down 7%, Bitcoin is down 5%, Binance Coin is down 3% and 7%, it’s down 13% and 6%, and Sheba Inu 8 and Avalanche are down 9% %.
Huge losses
Meanwhile, as rumors of bankruptcy spread, cryptocurrencies lost more than $ 100 billion in hours due to fears of a new Selios-style bankruptcy.
The market value of digital currencies declined from levels of $ 1.06 trillion below the levels of $ 960 trillion, to decrease by more than $ 100 billion.
new disaster
In a subsequent tweet, on November 7, the Binance founder defended the decision to withdraw from the FTX exchange, while FTX CEO Sam Bankman-Fried tried to reassure the markets that his trading platform was able to offer. .
“There have been questions about a significant deposit ($ 580 million) from FTT to Binance and we have been transparent that we are closing our FTT position,” said Sam Bankman-Fried, CEO of FTX.
Meanwhile, Bankman-Fried’s appeal seemed to be falling on deaf ears. Overnight, FTX saw an increase in withdrawals, with monitored assets also showing negative BTC balances for the exchange wallets.
investigation
Jack Newold, founder of Crypto Pragmatist newsletter, FTX, the # 1 cryptocurrency trading platform. 2, began his investigation on Twitter by saying:
“Pushed to the brink of the debt crisis and an announcement of its # 1 competitor, it has bled $ 1 billion off the platform in recent days.”
In another of the many reactions to the ongoing turmoil, Dylan Leclerc, chief analyst at UTXO Management, said that while it may not be over financially for FTX, the transparency of its operations has been a cause for concern.
Part of the Twitter comments stated: “I don’t think FTX can be insolvent, but I think Alameda’s concerns are significant, if nothing else.”
cz. complaint
In his statement on the matter, Shaw said that sales will be conducted in a way that affects the market as little as possible. The Binance CEO also said he has no intention of harming a rival cryptocurrency exchange with his decision.
During these developments, Carolyn Ellison, CEO of Alameda Research, made an offer of $ 22 per token to purchase FTT tokens from Binance.
The move is interpreted as such an offer because the company does not want the price of the FTT token to drop below $ 22.
new scare
In the midst of this development over the weekend, many commentators shared their FTX concerns. Some cryptocurrency commentators, who believe a major cryptocurrency exchange is at risk of failure, believe the recent FTT transfer from Binance fueled the crisis.
Sam Pinkman-Fried, CEO of FTX, said in a Twitter statement that FTX and its subsidiaries are subject to a high level of oversight and have a solid financial structure. Bankman-Fried confirmed that the shootings on the platform were going smoothly and told FTX users there was nothing to worry about.
Reports after the transfer of the $ 584 million FTT token from Binance also showed some great releases.
Among them, $ 109.8 million in cryptocurrencies was transferred from FTX to the Nexo platform. Jump Trading instead withdrew 40.4 million dollars from the FTX exchange.
While these developments are ongoing, the FTT token fell more than 10% to $ 21.4, while the bearish trend continues in cryptocurrencies, FTT, which fell 15% in the past week, has changed to $ 22.
The article does not express a recommendation or appointment, but simply a monitoring of market fluctuations, as trading in digital currencies carries high risks, including the risk of losing part or all of the investment, knowing that it is not completely subject to authorities and markets.
