Finally, the sport is over for Sam Bankman-Fried as FTX entities filed for Chapter 11 bankruptcy on Friday, November 11. This might in all probability be the quickest demise for a crypto large within the historical past of crypto markets.
FTX chief Sam Bankman-Fried wrote a Twitter thread apologizing for what occurred during the last week. He said:
Today, I filed FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings within the US. I’m actually sorry, once more, that we ended up right here. Hopefully issues can discover a strategy to get better. Hopefully this could carry some quantity of transparency, belief, and governance to them. Ultimately hopefully it may be higher for purchasers.
Well, this doesn’t make something clear whether or not 1 million FTX customers will ever get their a refund. The falling of the enormous, nonetheless, leaves a serious darkish spot for the crypto area.
Crypto Market Remains Steady After FTX Fall
The crypto market hasn’t reacted a lot to the information of the chapter submitting by FTX. Bitcoin and all different main cryptocurrencies are exhibiting little or no volatility during the last 24 hours after a brutal week.
Maybe the crypto market has already reacted sufficient beforehand, eroding 20% or $200 billion price of buyers’ wealth in lower than per week’s time. As of press time, Bitcoin is buying and selling 0.4% down at a value of $16,888 and a market cap of $324 billion. Interestingly, Ethereum (ETH) is up 1.69% within the final 24 hours as buyers look to capitalize on the underside after a 25% fall final week.
Speaking to CNBC about the way in which FTX chapter unfolded, Wall Street veteran and Galaxy Digital founder Mike Novogratz said:
This is unhealthy for the trade. Period. The entire system is constructed on belief. This FTX saga is loads worse for the infrastructure of crypto, for folks to purchase, promote, lend, and promote cash.
However, Novogratz believes that this may very well be a shopping for alternative simply as there’s blood on the streets. JPMorgan has additionally stated that the collapse of FTX may show to be the catalyst for the utility worth of crypto. “All of the recent collapses have come from centralized players and not decentralized protocols,” they added.
The introduced content material could embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability on your private monetary loss.
