Crypto Stock Market Crash: FTX Bust Could Sweep Crypto.com And AAX

As the numerous hashtags on the short message service Twitter show, the bankruptcy of the crypto trading platform based in the Bahamas is causing it FTX currently not only among insiders in terms of cryptocurrencies for vortex. The fact that a company relevant to the overall system collapses almost overnight is new.

Crash shocks crypto world and goes far beyond

The crash of the crypto exchange FTX, which has been in bankruptcy proceedings since November 11 and is suspected of having embezzled up to 10 billion US dollars, caused the entire crypto industry to tremble. Many of the big names in crypto, including Changpeng Zhaothe CEO of binancethe world’s largest trading platform for cryptocurrencies, and Vitalik Buterinthe conceptual inventor of Ethereumhave expressed concern about the current situation in the crypto market.

*) in October 2021

On November 11, 2022, FTX and approximately 130 other FTX.com, FTX US affiliated companies and entities in the State of Delaware filed a follow-up report Chapter 11 a bankruptcy.

Just last September, FTX and the Mercedes-Benz Formula 1 team announced a long-term partnership, after which the FTX logo was placed on the cars and racing suits of Lewis Hamilton and George Russell. The arena of the Miami Heat, an NBA team, was also promoted by FTX after closing a $135 million deal.

Externally, the company gave itself a serious look and yet FTX is said to have embezzled customer deposits in the amount of 10 billion US dollars through transfers to its affiliated company Alameda Research.

In addition, shortly after the bankruptcy was announced, almost one billion US dollars were stolen from the trading platform with “unauthorized transactions”.

Binance CEO warns about Crypto.com

Binance CEO Changpeng Zhao, speaking as part of the Indonesia Fintech Summit 2022 first publicly commented on the insolvency of FTX and assumes that the entire industry “was set back a few years as a result“, already warns of the next potential crash.

After the crypto community became aware of a proposed transaction by Crypto.com was encountered, in which 320,000 ETH – the equivalent of around 377 million euros – were to be transferred to Gate.io, the question arose whether Crypto.com could also be planning an unclean exit (“exit”).

When crypto exchanges have to move large amounts of crypto after disclosing their wallet addresses, that’s a bad sign. stay away

Changpeng Zhao, CEO, Binance

The Binance boss warns investors against putting their cryptocurrencies on the Crypto.com wallet.

If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. stay away stay #SAFU. 🙏

— CZ 🔶 Binance (@cz_binance) November 13, 2022

Ethereum inventor criticizes FTX CEO

Ethereum inventor and founder Vitalik Buterin sees FTX as the “worst scam to date“ in the field of cryptocurrencies. It is particularly noticeable that FTX always “particularly virtuous and law-abiding” have. In particular, FTX founder and former CEO Sam Bankman-Fried (SBF) is clearly criticized by Vitalik Buterin. Quite a few investors are already demanding a prison sentence for the 30-year-old US entrepreneur.

SBF the public figure deserves what it’s getting and it’s even healthy to have a good dunking session to reaffirm important community values.

Sam the human being deserves love, and I hope he has friends and family that can give it to him.

— vitalik.eth (@VitalikButerin) November 13, 2022

The former FTX CEO is said to have lost around 95 percent of his assets, which had “shrunk” from 20.5 to around 15 billion US dollars, in the course of the company’s insolvency and has not been included in the list of global billionaires since then.

Industry suffers loss of trust

As a result of the FTX crash and the many investors who have been defrauded of many billions of US dollars, the entire industry has suffered a significant loss of confidence and will have to adapt to tougher regulations and stricter supervisory authorities.

I think this has set us back a few years now. Regulators are rightly going to be much, much stricter now, which, frankly, is probably a good thing.

Changpeng Zhao, CEO, Binance

Whether and how the crypto universe will emerge from this crisis and how far prices will fall can only be speculated at the moment. In the last 7 days, major assets like Bitcoin, Ethereum, Ripple and Cardano have lost between 20 and 30 percent of their value.

Binance has invested in the Twitter acquisition

The development of Binance will also be exciting to watch, as the company contributed $500 million to Elon Musk’s takeover of Twitter, according to the news agency Reuters reported on October 28.

Wildfire is quite possible

It remains to be seen whether the FTX crash will also have a domino effect on other exchanges and the entire industry. The exchange AAX is already suspending withdrawals from its exchange as a direct result of the FTX bankruptcy, as is the website CoinDesk reported.

Withdrawals have been suspended to avoid fraud and exploitation.

Current system upgrades require our third-party partner to review and restore all users’ inventory data.

Due to the current market situation, the integration is taking longer than usual and should now be completed in 7-10 days. We apologize for the inconvenience caused and will do our best to resume regular operations.

Crypto Exchange AXX

Bitcoin is currently trading at around 16,000 euros while Ethereum (ETH) is at 1,200 euros.