The value of cryptocurrencies such as Bitcoin, Ether, and other cryptocurrencies, including alt-coins, has dropped following the news of FTX’s bankruptcy at the end of last week.
Several events, including the allegations of serious mismanagement of funds by the exchange and Binance’s announcement of its plan to liquidate approximately $580 million in FTT, aggravated the mess FTX found itself in. At the time, FTX was the second largest cryptocurrency exchange by trading volume.
According to a company statement disclosed via Twitter, FTX exchange founder Sam Bankman-Fried filed for Chapter 11 bankruptcy protection in the U.S. Furthermore, he resigned as the exchange’s CEO and was immediately replaced by John J. Ray III. a replacement made to oversee and see through the exchange’s ensuing transition.
Social media has since been littered with theories and opinions from bereaved traders and crypto experts expressing their bewilderment at the pathetic, discouraging, and developing events around the FTX exchange.
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FTX’s Impact on Ethereum & Bitcoin
Ethereum’s and Bitcoin’s steady rise has been cut short by FTX’s excruciating situation. Crypto investors have expressed worry as enthusiasts have second thoughts about investing in coins.
The market is not encouraging as Bitcoin, Ether, Cardano, Polygon, Cosmos, Chainlink, Polkadot, Uniswap, TRON, Avalanche, and Monero experienced drops in value over the weekend too.
This comes at an inconvenient time, and the best word to describe the market’s atmosphere is depressing.
Read also: FTX officially files for bankruptcy as CEO resigns
Crypto traders who had hoped that the mild and budding bullish trends recorded in the past few weeks would result in enormous -or decent- profits have been offered a banquet of disappointment.
Bitcoin’s value dropped by 4.4%; currently, it trades at $16,808. Ether is currently down by roughly 5.87 per cent over the past 24 hours across global exchanges, trading at $1,230.
Global exchanges like CoinMarketCap, Coinbase, and Binance have Bitcoin’s present value at $16,099. According to CoinGecko, the BTC market cap is now $22.5 per cent lower than at the start of the week.
Read also: Binance to start Recovery Fund for crypto projects in crisis
Gadgets 360’s cryptocurrency price tracker reveals that most major altcoins saw a steep drop in value. The global crypto market capitalisation numbers showed a 4.42 per cent dip through late Sunday and early Monday.
Meme coins were not unaffected by the current dip in the market. Dogecoin dropped off further and is currently valued at $0.08 after dropping by more than 10.7 per cent over the last 24 hours, while Shiba Inu is valued at $0.0000088, down 9.53 per cent over the past day.
The recent significant decline has subdued the impact of the US Fed’s interest rate increase. BTC’s impressive run over the last few weeks has been halted by the mess created by FTX’s bankruptcy. Traders are left to linger for the postponed bullish spark that will lift the market’s spirit again.
To revive the ailing market, Binance CEO Changpeng “CZ” Zhao has disclosed that Binance, the largest cryptocurrency exchange in the world, is setting up an industry recovery fund to help rebuild the industry.
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify,” he wrote on his Twitter page.
CZ said that more details would be announced in the coming days. He further urged that other industry players interested in co-investing were also welcome. Tron founder Justin Sun said that Tron, Huobi Global, and Poloniex would support Binance in its initiative.
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