The crypto industry took a nosedive in 2022 due to inflationary pressures and tightening liquidity. It witnessed the fall of a few stablecoins, such as Tether and USD, which resulted in further instability of many crypto giants.
One of the biggest and most unexpected crypto crash occurred last week as CoinDesk, a crypto news and tracking website, reported on a close relationship between Bankman-Fried’s Crypto Exchange FTX and his trading firm Alameda Research.
According to reports, FTT tokens were listed as assets and liabilities on FTX’s balance sheet. Furthermore, the FTT tokens comprised most of Alameda’s equity, raising concerns about FTX’s liquidity and financial health.
FTX’s then-CEO Sam Bankman-Fried was considered one of the cryptocurrency saviors after helping companies that faced difficulty during the crypto winter, including Voyager Digital, which failed after owning a stake in Terra.
Nevertheless, the prevalent cryptocurrency billionaire went from being an industry leader to a villain in less than a week. He lost most of his fortune, saw his $32 billion company collapse, and was the target of federal and state investigations.
In the wake of last week’s run on deposits, Mr. Bankman-Fried’s crypto exchange, FTX, was forced to file for bankruptcy after a bank run left the firm with an $8 billion shortfall. As a result, other crypto companies have been destabilized, and widespread distrust has been sown in the industry. FTX’s investors said they thoroughly researched the company’s financials, which showed a healthy, growing company with an easy-to-use platform for crypto trading, storage, and buying. Yet, they had no idea that FTX might be self-dealing with Alameda.
Consequently, Binance came close to bailing out the crypto exchange due to its massive liquidity shortage, but the deal fell through. Binance halted the deal owing to regulatory concerns and liquidity issues.
Concerning the recent happenings, Bankman-Fried has resigned from his post as CEO.
However, with people showing both support and criticism towards the FTX’s unexpected collapse, Real Research wanted to know the public’s take on it.
Hence, hurry and answer the survey on the FTX exchange bankruptcy on the Real Research app from November 19, 2022. After that, you will receive 50 TNCs as a reward.
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