Crypto markets have come under intense pressure this year, as rising interest rates prompt investors to ditch risky or speculative assets. The collapse of several crypto lenders, including Celsius and Voyager, major tokens terraUSD and Luna, and hedge fund Three Arrows Capital, had rung alarm bells even before the fiasco at FTX, headed by Sam Bankman-Fried.
"From a financial side, it's fair to say that confidence is going to be somewhat shaken because if you can't trust FTX then what can you trust?" Yat Siu, co-founder of Hong Kong-based investor Animoca Brands, told Reuters on Wednesday. "Now that the balance sheet strength of Alameda Research and FTX is under question only a few months after being perceived as strong balance sheet entities, it creates a confidence crisis and reduces the appetite of other crypto companies to come to the rescue."
In the case of FTX, U.S. residents can't trade on its global platform due to strict regulations for the crypto space in the United States. FTX has a U.S. partner, FTX.US, but its offerings are more limited than the global platform. "The show must go on, the industry needs to keep growing, but it's definitely a step-back in itself when you see the poster child of the industry being put in this position," said Jean-Marie Mognetti, chief executive of crypto asset manager CoinShares.
Market sentiment took a big hit in the hours immediately after the extent of FTX's troubles became clear, as caution spread to other digital currencies.
I will keep investing in PetaRush with its NFTs topping other NFT on gate_io
If they’d only asked, I could’ve offered some advice.
Just made a nice cut with Matic.
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