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Why did FTX sink?

by Financial Economy

FTX, which came to the fore with the possible sale purchase of Binance in the past days, announced that it was bankrupt. After the bankruptcy, there was a great decline in crypto currency exchanges. So why did FTX sink? You can browse here for information about Calamari Network (KMA) coin.

Why did FTX sink?

World-renowned cryptocurrency exchange FTX has filed for bankruptcy. FTX founder and CEO Sam Bankman-Fried also resigned from the company. “I screwed up and should have done better,” Fried said after his resignation.

Sam Bankman-Fried, CEO of FTX, which caused the deletion of 200 billion dollars from the crypto money market in 2 days due to the panic created by the liquidity shortage he experienced, published an apology statement on his social media account. “I screwed up and I should have done better,” Fried said.

Details of CEO Sam Bankman-Fried’s statements are as follows:

“We’re doing our best to provide liquidity right now. I can’t make any promises on this. But I’ll try. If it works, I’ll give everything I have to give. We are in talks with various ‘players’. We’ll see how it goes. All the money and available collateral from here is entirely up to users and It will be given to employees with no fault of their own, because at the end of the day, I was the CEO and was responsible for making things go well.”

Binance- FTX Challenge

This bankruptcy also has a pre-process. Binance founder CZ’s statement, “We sell FTX Tokens (FTT),” triggered chaos in the industry.

After these statements, it was seen that Alameda Research also rested on Binance and made a statement that “FTT will not go below $22, we will buy it”.

Although FTX founder SBF initially thought he could beat Binance, things were not so easy.

When we look at Alameda Research’s asset portfolio, there is a big gap. FTX, which bought risky products with the funds of the investors, lost the funds by making a loss from these products.

The fact that FTX founder SBF secretly transferred these funds to Alameda Research suggests that SBF is defrauding investors with a ponzi scheme.

Caution: The information contained in this content is for general informational purposes only. It is not investment advice.

For information about cryptocurrency: https://en.wikipedia.org/wiki/Cryptocurrency

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