The failure of the FTX platform has caused great controversy in the cryptographic world, in addition to great discontent on the part of cryptocurrency users, who have expressed that they do not feel safe to continue making investments that do not guarantee their solvency at a particular time. If you want to start bitcoin trading check The Official Site of Bitcoin Champion.
Sam Bankman-Fried, the founder of FTX, the platform that has gone bad with the support of the crypto assets stored in it, expressed his ignorance regarding the leakage of funds that were diverted to Alameda, one of his related investment firms, who is the cause of its bankruptcy.
Through a press conference, he announced that he was not the one who managed the operations or the funds to his liking, much less was he the director of Alameda, stating that he found out about the facts when they were made public; otherwise, he would remain oblivious to the situation.
The FTX platform could face legal charges for the fraud committed
At the beginning of last month, this platform announced that it was going through a critical moment in its administration, which led it to bankruptcy; currently, the new organization attended a court in Delaware in the United States to start a new modification stage.
The new administrator John Ray and the group of legal defenders of the new administration have clarified that many crypto assets were stolen, and there is no trace of their possible location; they also highlighted that the organization lacked accurate information on finances and corporate regulations.
FTX, one of the platforms with a high value in crypto assets
This platform for exchanging and managing crypto assets reached a discount of 30 billion dollars and had more than 1.5 million users worldwide.
It is currently known that the company acknowledged having a debt of 5 billion dollars with its most influential investors, which number about 60.
For Bankman-Fried, what caused the bankruptcy of the platform in such a way, is the exuberant sale of crypto assets that occurred at the beginning of this year, reducing the solvency of the platform by more than 50%.
These sales were accompanied by a lending constraint, further affecting the platform’s strength several months before it filed for bankruptcy.
The bankruptcy of the FTX platform is the one that has reported the most losses.
The fall of FTX represents the third most significant break in the world of cryptocurrencies this year, followed by Three Arrows and Vault.
Following these events, distrust in the markets becomes notable, decreasing investments and causing the value of crypto assets to fall.
Cryptocurrencies have suffered major bearish trends since the FTX break; such is the case of Bitcoin, which had stabilized at a limit of 60,000 dollars in the past year and is due to the fall of the platform and many other factors around in ranges of 16 and 0 thousand dollars currently.
The same path was followed by Ethereum, which follows Bitcoin, which after this unfortunate event that FTX is going through, is valued at $1,200 after hovering around almost $2,000.
The highest instability recorded in the crypto market
After the announcement of the collapse of the FTX exchange platform, there was a rebound effect in the values of cryptocurrencies in the digital market; in a matter of an hour, the importance of crypto assets already showed a fall and volatility never seen before, added to the devaluation of the FTT and the distrust due to the uncertainty of the course of the funds in FTX. raising
During this year, many episodes have disadvantaged cryptocurrencies, causing discontent in the world population that affects this commercial alternative.
Conclusion
Despite the instabilities that some exchange platforms present and the high volatility that they have caused in cryptocurrencies, they are still in great demand in the market because, for many users worldwide, they are a new alternative for financial growth.
Some users see the situations presented as events or risks that are run by being part of this digital crypto world. We must be aware long before making decisions to invest in crypto assets so as not to regret the possible losses that may arise.
Every investment is a risk that also carries a probability of winning; you have to think about diversifying your investments to have several options in which you can grow financially and achieve the economic stability you want in these times when the economy is faltering, affecting the most vulnerable.
Disclaimer: Crypto information is educational, not financial advice. Investing in cryptocurrencies carries risks. Exercise caution and seek professional guidance when needed.
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