Crypto market crash: “F#di with all this…” says FTX CEO

The world of crypto assets is not at all favorable. In fact, billionaire Bill Gates, founder of Microsoft, mentioned this Wednesday that the value of cryptocurrencies and NFTs is based “100% on The Biggest Idiot Theory.” To reinforce this idea, the market received another blow in the form of the collapse of one of the largest cryptocurrency exchanges, FTX.

To fill the eight billion euro hole, FTX.com CEO Sam Bankman-Fried took to Twitter to apologize to customers and investors for the hole that left the crypto market in free fall and wiped out more than $200,000 million in digital asset value. .

Cryptocurrencies are based on the "100% Biggest Idiot Theory".

The cryptocurrency market is in crisis and distrust is causing many investors to increase their level of caution. Added to these "danger signs" are statements such as that of Bill Gates, who, at a conference hosted by the TechCrunch website, the Microsoft founder said that "This kind [cripto] assets are 100% based on The Biggest Idiot Theorythat someone will pay more for it than me,” to which he adds, “and with that comes anonymity when you avoid taxes, government regulations… I don’t participate in any of that.”

Signs of concern intensified after one of the largest digital currency exchanges, FTX entering a liquidity crunch prompted it to seek help from competitor Binance.🇧🇷 At first, this platform recognized the purchase of FTX, but eventually refused. The scenario further exacerbated the crisis in this segment.

“Sorry. It is most important. I screwed up and I should have done better." | Diss Sam Bankman-Fried, FTX CEO

FTX collapses and shakes the world of cryptocurrencies

Over the past few hours, crypto investors have again seen clear signs of high volatility in the cryptocurrency market. O The value of several digital currencies, including bitcoin, has fallen significantly in recent days due to the flight of customers from FTX, one of the world's largest exchanges for buying, selling and holding these currencies.

As echoed around the world, earlier this week the Bahamian company turned to its rival Binance for help after it received a surge in withdrawals from the exchange and caused a liquidity crunch. Initially, the competitor accepted the offer, but changed his mind this Wednesday.

According to the Wall Street Journal, citing a Binance statement, CZ says that:

We hoped we could support FTX clients to ensure liquidity, but the issues are beyond our control and beyond our ability to help.

CoinDesk, a source at Binance, explains that it pulled out of the deal due to news that FTX may have misused customer funds, as well as US regulatory investigations.

As can be read on Twitter, as a result of due diligence, as well as the latest news of misplaced customer funds and alleged investigations by US agencies, Binance has decided it will not proceed with the potential acquisition. http://FTX.com.

Another cryptocurrency shake-up

In this scenario, the market was shaken up again and sent bitcoin to its lowest level in two years🇧🇷 The cost was about 16 thousand dollars. The FTX currency - FTT - lost half of its value this Wednesday.

It is a fact that cryptocurrencies have been in decline for some time now. However, the problems with FTX were more like wasted points.

The case involves several situations that are yet to be clarified. The collapse of digital currency trading platform FTX has prompted U.S. authorities to investigate the company for possible violations of securities regulations, and analysts foresee further problems for this market.

In the aftermath of the crash, FTX.com CEO Sam Bankman-Fried took to Twitter to apologize to customers and investors for the alleged $8 billion shortfall.

I'm sorry. This is the main thing. F# handled it all and should have done better.

Sam Bankman-Fried said.

The CEO ensures that the money is safe and that he is trying to resolve the situation, but sources contacted by Britain's Financial Times note that FTX needs $8 billion (€7.8 billion at current exchange rates) to resolve the liquidity crisis.

These problems have taken investors by surprise. This is because of by early 2022, the exchange was valued at $32 billion.after raising US$400 million in a funding round - Japanese tech giant Softbank was among the investors.

Bankman-Fried has reportedly met frequently with US lawmakers to discuss the future of cryptocurrencies; at technology summits, the chief shared the stage with politicians such as Bill Clinton and Tony Blair.

However, last week began to appear the first alarming signals. It all happened when a news article was published in an online magazine about cryptocurrencies. CoinDesk, warned that the balance of Alameda Research, a subsidiary of FTX, mainly consists of the FTT cryptocurrency. It is the official currency of FTX and its holders receive a discount when using the platform. This means that the FTX exchange service, Alameda, relied on a currency invented by a subsidiary.

This eroded confidence and caused many Alameda and FTX users to withdraw their funds from the platforms. Over time, exits from the service sector spread, resulting in a liquidity crisis.