On Tuesday, the crypto market was hit hard by massive losses. Some analysts speculated that the selling pressure on Bitcoin and Ethereum from FTX’s attempt to raise liquidity against impending insolvency caused this cascade of losses.
Analytics data indicated that FTX sold its ETH holdings. The selling pressure placed on Ethereum made it more expensive and prompted a Bitcoin sell-off. However, despite FTX’s actions in the market to withstand the tanking of its token FTT, the asset didn’t recover.
FTT had fallen by 19% as of November 7 and further fell by 73.04%. The news of FTT’s collapse spread quickly through crypto markets like wildfire, with associated losses. In the aftermath, crypto markets lost close to $100 billion. They also suffered a drop of 10% in the NASDAQ.COIN stock as a result.
Some crypto investors had the opportunity to stockpile assets due to massive losses and market sell-offs. Cathie Woods’ Ark Invest seized an opportunity during COIN stock falls on Tuesday to purchase 420,000 COIN shares worth $21 million. COIN stock trades at an 80% discount.
Status of Binance Agreement with FTX
FTX’s ordeal started with the announcement by Binance to liquidate its FTT holdings. This applies even to FTX companies outside of the United States. Speaking on Bloomberg Television, Coinbase CEO Brian Armstrong commented on Binance’s decision. Armstrong stated that he wouldn’t make the same decision as Binance. This move, according to Coinbase’s chief, will disqualify him from acquiring FTX U.S.
Binance continues to have some connections with FTX because its contract with the exchange was not terminated. Each firm must settle. Coinbase’s CEO stated further that FTX customers could lose their money if the FTX/Binance deal is not completed.
Coinbase CEO: How the FTX Ordeal Could Affect Crypto Regulation
It appears that FTX’s losses have become gains for Coinbase. According to Armstrong, Coinbase’s customer activities have increased since the news of the FTX issue. Armstrong explained that foreign exchange customers are most at-risk of losing their money if they use unregulated ones.
Although he stated that Coinbase would not be able to buy FTX, he did not give any details. He added that FTX’s financial crisis might not affect how regulators see the crypto industry. However, the issue would change the regulator’s perception of Sam Bankman-Fried, the FTX CEO.
Remember that Bankman-Fried was active in Washington Congress to advocate for regulation of the cryptocurrency industry.
FTX currently trades at $4.65 and has a current market cap $619,086,494 with a trading volume $3,262,989.678.
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