{"id":11758,"date":"2022-11-09T18:30:00","date_gmt":"2022-11-09T15:30:00","guid":{"rendered":"https:\/\/alfacash.blog\/?p=11758"},"modified":"2024-02-19T21:50:12","modified_gmt":"2024-02-19T18:50:12","slug":"panic-ftx-debacle-drags-whole-crypto-market","status":"publish","type":"post","link":"https:\/\/alfacash.blog\/cs\/2022\/11\/09\/panic-ftx-debacle-drags-whole-crypto-market\/","title":{"rendered":"Panic: FTX debacle drags the whole crypto market"},"content":{"rendered":"

After a brief and hopeful period, we have some bad news again. FTX, previously the fourth largest crypto exchange worldwide, is facing a \u201csignificant liquidity crunch\u201d.<\/strong> Its native token, FTX Token (FTT) has lost over 90% since November 5 [CMC] and Binance was aiming to buy the exchange to protect its users and investors. The whole FTX situation has spread panic in crypto, whose market cap has decreased by over 24% so far.<\/p>\n\n\n\n

We can say everything started last week when some reports disclosed that Alameda Research held too many<\/a> FTT tokens. Both FTX and Alameda Research (a trading firm) were founded by Sam Bankman-Fried (SBF), and are very tied to each other. On the other hand, Binance<\/a> was an early investor of FTX in 2019, but they parted ways<\/a> last year \u2014apparently, due to different opinions about crypto regulation<\/a>.<\/p>\n\n\n\n

\"Ukrajina-Bitcoin-krypto-regulace\"<\/figure><\/div>\n\n\n\n

SBF has been lobbying for tighter regulations against Decentralized Finance (DeFi).<\/strong> He even navr\u017een\u00fd<\/a> that DeFi providers should register as traditional financial brokerages, thus, identifying all their customers and highly increasing the entry barrier to the ecosystem<\/a>. Everything indicates that Changpeng Zhao (CZ\u2014Binance head) doesn\u2019t agree with this at all.<\/p>\n\n\n\n

On November 6, CZ announced that they\u2019d liquidate their remaining stash of FTT tokens. That was around 23 million FTT, or about $529 million. The movement, as CZ vysv\u011btlil<\/a>, was \u201cdue to recent revelations that have come to light\u201d. Those recent revelations, of course, were about<\/a> the FTX insolvency, already rumored then.<\/p>\n\n\n\n

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Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.<\/p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) November 6, 2022<\/a><\/blockquote>