Struggling crypto exchange FTX files for bankruptcy.
After a brief fall, the crypto market remains stable with little volatility.
Filed for Chapter 11 bankruptcy on Friday, November 11.
This could be the fastest demise of a crypto titan in crypto market history.
FTX CEO Sam Bankman-Fried apologized on Twitter for what happened during the last week. He stated:
“Today, I filed voluntary Chapter 11 proceedings in the United States for FTX, FTX US, and Alameda. Again, I apologize for bringing us here. Hopefully, things will turn around. Hopefully, this will bring them some openness, trust, and governance. Ultimately, it should be better for customers.”
Well, it's unclear whether 1 million FTX users will ever get their money returned. However, the demise of the titan leaves a significant void in the crypto realm.
Crypto Market Remains Steady After FTX Fall
The announcement of FTX's bankruptcy filing has had little impact on the cryptocurrency market. Following a horrible week, Bitcoin and all other major cryptocurrencies have shown very little volatility in the last 24 hours.
Maybe the crypto market has already reacted sufficiently, degrading 20%, or $200 billion, of investors' wealth in less than a week. As of press time, Bitcoin is trading 0.8% down at a price of $16,707 with a market valuation of $322 billion. Interestingly, Ethereum (ETH) is up 1.69% in the last 24 hours as investors attempt to capitalize on the bottom after a 25% drop last week.
Wall Street veteran and Galaxy Digital founder Mike Novogratz told a local media outlet about the FTX bankruptcy proceedings:
“This is awful for the industry. Period. The entire system is based on trust. This FTX tragedy is even worse for the crypto infrastructure, which allows individuals to buy, sell, lend, and promote coins.”
However, Novogratz believes that this could be a good time to buy because there is blood on the streets. JPMorgan has also stated that the collapse of FTX may serve as a catalyst for the utility value of cryptocurrency. They stated that all of the recent collapses were caused by centralized participants rather than decentralized protocols.
What’s next for FTX after filing for bankruptcy? Will users receive their funds safely? Share your views in the comment section below.
Read also: The FTX Exchange declares bankruptcy
