, the native crypto token that gives users access to the FTX trading platform.
Here's why that matters: A leaked balance sheet revealed that the value of Bankman-Fried's crypto trading firm, Alameda Research, was heavily reliant on the value of FTT,So when Zhao announced on Nov. 6 that his company would liquidate any remaining FTT it held due to "recent revelations," it triggered fears among investors that FTX would be unable to pay its debts.
Many began to withdraw their funds, which led to a stark 72% drop in FTT's price. As FTT's price fell, so did the value of FTX's assets that were tied to it."The first thing traders need to do now is understand the legal duty that an exchange has to them, and whether their assets are held securely," Royal says.
Like many other crypto exchanges, FTX's insurance coverage only addresses certain criminal events such as theft or fraud, Martin Leinweber, digital asset product strategist at MarketVector Indexes, tells CNBC Make it. "There is no insurance coverage just because the exchange fails," he says. "If there's no bailout, depositors in FTX could lose everything."In short, it doesn't look good. "The events shook the broader cryptocurrency markets, sending bitcoin and other currencies to two-year lows," Leinweber says.
MakeIt
MakeIt Bitcoin only. Self custody + run your own node. Don't trust; verify, there is no regulation that can substitute for prudence
MakeIt
MakeIt Wrong. It's removing speculation and fraud. Very bullish. Writer is a halfwit
MakeIt Ftx was a centralized exchange ran by a fraud. Let’s not mistake this with crypto. When Bernie madoff ran a fraud was it the end of the dollar? Cnbc is not news it’s a propaganda outlet.
MakeIt It signals the evil of crypto dying.
MakeIt Lmao expert in what?
MakeIt He is a crook and ran a Ponzi scheme Needs to be prosecuted but this DOJ will give this liberal cheat a break
MakeIt And Dems who his Ill gotten money
MakeIt Glad I didn’t sell my house for crypto!
MakeIt 'Expert'
MakeIt Bullish signal is IN
MakeIt Turns out Sam Bankman-Fried´s $Billions got burned as well ...
MakeIt This might be the precursor of Bitcoin plummeting to zero😬. Cold feet galore
MakeIt Me, after listening to people for the last three years telling me I didn’t want to to understand Crypto because I said it seemed like a giant Ponzi scheme with no safety net.
MakeIt Finally Bitcoin only
MakeIt Good!
MakeIt $FTXI Hey CNBC cover this. FTX Inu. The peoples coin. Sam's bankma fraud in the mud.