As you already know, the situation associated with the fall of the FHT cryptocurrency continues to negatively affect the state of the entire cryptocurrency market. How will events develop further?
In this article, we will analyze why the cryptocurrency market continues to fall today, what are the reasons for this and what will be the consequences.
After the fall of such giants of the cryptocurrency market as FTX and Alameda, almost all areas sank heavily, the changes affected the entire market.
This situation led to the fact that, for example, the company Digital Currency Group experienced an acute shortage of liquidity. The mood of cryptocurrency investors and traders affects the volatility of currencies. The situation can be described as uncertain, as market participants are confused and do not understand which market makers should be trusted and which not.
The cryptocurrency market previously had a capitalization of $1 trillion. But the situation has changed radically recently. Today, the volume of cryptocurrency capitalization is 870 billion dollars. This significant drop in such a short period of time woke up like a real hurricane throughout the market.
The main reason for this decline is called the fall of the large crypto exchange FTX. The company was called too big and too unsuccessful. Concerns about its solvency are confirmed every day, because the price of the tokens of this exchange is rapidly falling. The percentage drop has already exceeded 80.
Despite the fact that the largest cryptocurrency exchange, Binance, had in its plans a potential purchase of part of the assets of the FTX, it nevertheless abandoned this idea. The CEO of Binance said that the results of a corporate due diligence and US investigation into the misuse of customer funds by the FTX led to the fact that the transaction to acquire the assets of the FTX will not be made.
After this statement, the price of FTX tokens continued to fall rapidly. This led to the fact that the owner of the FTX, Sam Bankman-Fried, lost 94 percent of his capital, he was excluded from the Bloomberg Billionaires Index.
It may seem to many that the bankruptcy of the FCS happened overnight, but it is not. Let's take a look at why, did it really happen overnight?
The CEO of the FTX regularly used the capital of the exchange's users to invest in its subsidiary Alameda Research. This has been going on for a long time and there can be no justification for this, all companies that have ever cooperated with the FTX, as well as traders and investors who have invested their capital in the exchange, have been put under attack.
It is safe to say that this situation will not go unnoticed by the market. All the previous scandals that affected the liquidity of both bitcoin and altcoins in one way or another will seem like flowers compared to the FTX scandal.
Let's see who will be affected by the consequences of the FTX scandal.
As a result of the current crisis, there will certainly be changes that will change the cryptocurrency market and, hopefully, help it grow and develop with even greater force.
Best case scenario:
As we said, the crisis after the collapse of the largest cryptocurrency exchange in the world will inevitably affect everyone, but there are ways to help you avoid a negative impact on your investment portfolio.
To know what up with the crypto market and keep up to date with all the news, stay with us. In our blog, you will find many more interesting materials that will help you strengthen your knowledge of the cryptocurrency market and successfully develop.
