Bitcoin price plummets as crypto space ‘left reeling’ from failed Binance takeover of FTX
More than $200 billion wiped from crypto market as world’s third largest cryptocurrency exchange risks complete collapse
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Your support makes all the difference.Bitcoin is hovering around its lowest price in more than two years following a failed attempt to rescue the beleaguered crypto exchange FTX.
The world’s third largest crytocurrency exchange by trading volume is suffering a liquidity crisis following billions of dollars worth of withdrawals in recent days.
FTX founder Sam Bankman-Fried sought help from investors before reaching out to Changpeng Zhao, CEO of the world’s largest crypto exchange Binance.
Mr Zhao, known as CZ, announced on Tuesday that he had reached a non-binding deal to buy FTX’s non US business, before pulling out the following day.
Binance said in a statement on Wednesday that it could not go throught with the deal as a result of corporate due dilligence, as well as reports regarding mishandled customer funds and alleged US agency investigations.
“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” the firm stated.
“Every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market.”
FTX now risks completely collapsing if a solution is not found, resulting in a major loss of confidence from investors in the crypto space.
The overall market has lost more than $200 billion since the troubles with FTX began, with bitcoin briefly plummeting below $16,000 on Wednesday evening – a price not seen since November 2020.
Bitcoin saw a slight bounce on Thurdsday morning but remains around the $16,000 mark – roughly 75 per cent down from the all-time high it experienced this time last year.
Despite the losses, some analsyts remain adament that bitcoin’s underlying value remains the same.
“As the digital token space is left reeling amid frenetic selling pressure, the unique premise of bitcoin as a truly decentaliesd form of digital cash will become all the more apparent,” analysts from Bitfinex wrote in a note shared with The Independent.
“While there will be much healing to be done after the apparent implosion of FTX, a supposed pillar of the digital token industry, the reasons that brought bitcoin into being are as clear and resolute as ever.”
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