Lastly, the sport is over for Sam Bankman-Fried as FTX entities filed for Chapter 11 bankruptcy on Friday, November 11. This might most likely be the quickest demise for a crypto big within the historical past of crypto markets.
FTX chief Sam Bankman-Fried wrote a Twitter thread apologizing for what occurred over the past week. He said:
Right now, 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 may convey some quantity of transparency, belief, and governance to them. Finally hopefully it may be higher for patrons.
Nicely, 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 significant darkish spot for the crypto house.
Crypto Market Stays Regular 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 over the past 24 hours after a brutal week.
Perhaps the crypto market has already reacted sufficient beforehand, eroding 20% or $200 billion value of traders’ 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. Curiously, Ethereum (ETH) is up 1.69% within the final 24 hours as traders look to capitalize on the underside after a 25% fall final week.
Chatting with CNBC about the best way FTX chapter unfolded, Wall Road veteran and Galaxy Digital founder Mike Novogratz said:
That is unhealthy for the business. Interval. The entire system is constructed on belief. This FTX saga is quite a bit worse for the infrastructure of crypto, for folks to purchase, promote, lend, and promote cash.
Nonetheless, Novogratz believes that this could possibly be a shopping for alternative simply as there’s blood on the streets. JPMorgan has additionally mentioned that the collapse of FTX would possibly show to be the catalyst for the utility worth of crypto. “All the latest collapses have come from centralized gamers and never decentralized protocols,” they added.
The introduced content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.