Almost the only agenda of the crypto money community in recent days is the bankruptcy of FTX. An article published on FTX, one of the largest exchanges in the world, led to the bankruptcy of the stock market and a major collapse in the crypto money markets. The last point we have reached reveals that the bankruptcy of FTX has created a domino effect in the sector.
As a matter of fact, it was already predicted that such a situation could occur. In fact, Changpeng Zhao, CEO of Binance, the world’s number one cryptocurrency exchange, brought this possibility up and warned all investors. Now we see what is feared. Because relatively small cryptocurrency exchanges are making statements one after another and announcing that they are on the verge of bankruptcy.
Bankruptcy announcements currently mostly cover companies affiliated with FTX!
Analysis of cryptocurrencies has begun to reveal that crypto exchanges are not trusted. Because in just a few days, more than $5 billion was withdrawn from the markets. This is exactly the reason why the stock markets started to have problems. Some exchanges, unable to meet the increasing withdrawal demands due to lack of collateral or insurance funds, began to need urgent cash. Of course, finding cash quickly in such an environment is not an easy thing.
When we look at the latest developments, we see that the exchanges with problems are generally related to FTX. However, if things continue like this, it seems like bankruptcy announcements may increase and even out of FTX. So which stock markets are in trouble right now? Let’s take a closer look at the allegations and statements on this subject together.
AAX has completely suspended withdrawals and will initiate legal proceedings (bankruptcy) if no solution can be found
When we look at the official statements, we see that the alarm bells are ringing for the Hong Kong-based cryptocurrency exchange. Stating that withdrawal transactions have been completely suspended, the exchange announced that it is working both to make payments and to continue its operations. Requesting an urgent capital increase, the company states that they are unlikely to find hot money quickly, but the money they need is low for market conditions. The official statement made by AAX can be found here.
Bells are also ringing for BlockFi, which FTX is planning to buy!
Things are not going well at BlockFi, which has made a huge $ 400 million deal with FTX. The stock market, which has suspended almost all its services, including withdrawals, due to current conditions, says that it has sufficient liquidity, but that it has taken such a decision to make the right decision about what to do. According to a report in the Wall Street Journal, BlockFi is preparing to file for bankruptcy and has started layoffs. You can read BlockFi’s explanations here.
Liquid within FTX has stopped withdrawals and deposits
Another cryptocurrency exchange affected by the bankruptcy of FTX is Liquid. The platform, which was acquired by FTX a while ago, announced that as of the past hours, withdrawals and deposits have been completely stopped. You can follow Liquid’s explanation here.
Salt, lending with crypto, became inoperable
The company named Salt, which provides loans with cryptocurrencies, said that the FTX bankruptcy also harmed them, and that the transactions should be paused in order to detect the damage in the company. It is not known whether the company will go bankrupt, but it is thought that lending in crypto could wreak havoc after the markets crash.
The statements made reveal that crypto money investors do not have a comfortable sleep for a while. Let’s see what happens next…
For full details on the events that bankrupted FTX:
Are cryptocurrencies safe? Was it decentralized?
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