Crypto Biz: Crypto’s day of reckoning has arrived
Who would’ve thought that the implosion of , the collapse of Three Arrows Capital and the bankruptcies of Celsius and Voyager wouldn’t be the most terrible crypto stories of 2022? In retrospect, crypto’s day of reckoning — and the new low for the cycle — hadn’t arrived even after all these tumultuous events.
The industry’s cyclical execution occurred this week when FTX — the world’s second-largest crypto exchange — was feared to be insolvent and on the brink of collapse. Those fears stemmed from FTX’s incestuous relationship with Alameda Research, a trading firm founded by FTX CEO Sam Bankman-Fried — As it turns out, FTX was trading on Alameda revenue to prop up its business, offering its illiquid and useless (FTT) for Alameda’s — Amid reports that FTX’s native token comprised roughly 40% of Alameda’s assets, Binance CEO Changpeng Zhao announced that his exchange would liquidate its entire FTT stash. It was the same Zhao, also known as CZ, who offered to buy FTX a few days later to save it from imminent collapse. While Bankman-Fried agreed to the deal, credible rumors suggest that CZ is backing out because of a huge hole in FTX’s finances. (Those rumors have since been confirmed to be true.)
Breaking: Binance CEO announces intent to acquire FTX to ‘help cover the liquidity crunch’
Binance CEO shares ‘two big lessons’ after FTX’s liquidity crunch
Galaxy Digital discloses $77M exposure to FTX, $48M likely locked in withdrawals
Meta joins big tech layoffs, lets go of 11,000 employees
Continue Reading on Coin Telegraph
Source by www.investing.com
