The recent crypto market crash has the markings of the 2008 Global Financial Crisis and had FTX fallout written all over it.
So, what role did FTX have in the 2022 crypto crash?
FTX’s bankruptcy, following a spat with Binance, resulted in a massive sell-off. This sliced the lion’s share off the cryptocurrency market liquidity. The consequences were dire. But what happened with FTX?
While the buyout of FTX was all set, Binance chose to walk away from the deal. This stunned the investors and caused one of the biggest crypto market stumbles. The failed deal led to a high level of skepticism and distrust in the market as questions about the survival of other cryptocurrency businesses amplified.
FTX’s bankruptcy filing resulted in many investors having their assets frozen. According to The U.S. Commodities Futures Trading Commission (CFTC), the missing FTX customer funds are over $8 billion.
So, is the crypto winter just a temporary setback, or is it the beginning of the end of digital currencies?Keep Reading