FTX Exchange Rattle Markets Slumps: Major Crypto Coins Slide

Singapore: On Tuesday Cryptocurrencies fell vigorously and the in-house token of major crypto trade FTX drooped by almost a quarter as investors seemed to take trepidation at talk of pressure on FTX’s financials.

The greatest digital token Bitcoin, fell as much as 6% to $19,351, its lowest in two weeks, and was on course for its terrible day since mid-September. Ether, the second largest coin in this field, fell over 6%. FTX has come under pressure after Changpeng Zhao, head of opponent exchange Binance – the world’s largest – said on Sunday his firm would liquidate its holdings of the FTX token due to unspecified recent revelations.

FTX founder Sam Bankman-Fried said the exchange was fine and that concerns were false rumors. FTX had no quick response on this matter. The FTX token – which gives holders discounts on FTX exchanging fees – was last down more than 30% at $15.41, its lowest since early 2021. The token, known as FTT, is the 30th biggest digital coin with a value of $2 billion, as per CoinMarketCap. Figures from analytics firm Nansen showed a one-day net surge from FTX of about $630 million, suggesting account holders were also getting their money out.

“On-chain analytics show hundreds of millions being withdrawn from FTX over the last day,” said Matthew Dibb, chief operating officer of Singapore-based crypto investment manager Stack Funds.

“The question of the solvency of FTX has been raised given recent events this year … however we don’t see any hard data as yet that would confirm this type of view.”

Crypto users brought up questions on Twitter last week about FTX’s token following a report by the news website CoinDesk on a leaked balance sheet from Alameda Research, a trading firm founded by Bankman-Fried that has close ties with FTX.

Alameda CEO Caroline Ellison said in a tweet on Sunday the “balance sheet info” showed only a subset of Alameda’s corporate substances. Alameda has over $10 billion in assets not reflected in the CoinDesk report, she said.

By Archana

Leave a Reply

Your email address will not be published. Required fields are marked *