The crisis in the cryptocurrency circle is spreading, and the collapse of FTX is by no means an isolated case.
On Friday, according to media reports, Binance CEO Zhao Changpeng said at the Indonesia Fintech Summit that the currency circle is facing a similar crisis as in 2008, "The 2008 financial crisis and the events that occurred this week may be an accurate analogy."
He warned that more companies could go bankrupt in the coming weeks after 's FTX crash.
He also said that the impact of the FTX crash has not yet fully reflected:
As FTX falls, we will see a chain effect. Especially those close to the FTX ecosystem, they will be negatively affected.
, and Zhao Changpeng can be said to have played an important role in "helping" in the collapse of FTX.
On November 6, Zhao Changpeng announced that he would sell all FTTs on the books, and the FTT price plummeted rapidly. He then started another "tug-of-war" with SBF, and abandoning the acquisition of FTX pushed it to the edge of the cliff - FTX filed for bankruptcy protection in the United States on Friday. In the end, this dangerous battle ended with Zhao Changpeng's victory.
At the same time, cryptocurrency traders are also worried that the crisis will spread further. Many well-known institutions such as Sequoia Capital , SoftBank, Tiger Global and BlackRock have also stepped on the thunder due to their investment in FTX.
In January this year, three funds, including SoftBank Vision Fund, invested $400 million at a valuation of FTX of US$32 billion. Therefore, the " butterfly effect " of the FTX collapse will even spread outside the currency circle. The collapse of
FTX can be said to be the "Lehman moment" in the currency circle, and will undoubtedly produce a larger earthquake in the currency circle than Terra (Luna) after it fell into the "death vortex".
But the difference is that during the 2008 financial crisis, institutions on the verge of bankruptcy had at least , central bank as the lender of last resort. But for a currency circle that lacks any regulation, the existence of a central bank is almost impossible. The currency circle without a backer can be said to be "doomed", and this crisis exposed the hidden dangers behind it at a glance.
Zhao Changpeng said that some other institutions in the currency circle will also face a similar liquidity crisis, "I think it will take most people several weeks to evacuate from the crisis."
Genesis, a large cryptocurrency trading company, said its derivatives business had about $175 million frozen on the exchange. But the company said that the funds "is not important to our business and will not affect its market-making or trading capabilities.
According to media reports, Anatoly Crachilov, CEO of Nickel Digital Asset Management, said:
The lack of transparency in the cryptocurrency circle is a place that every trader and investor will be very alert in the future.
Zhao Changpeng also expressed doubts about FTX's acquisition of another cryptocurrency lender Voyager, saying FTX "apparently has no money" to conduct the $1.4 billion transaction.
But Zhao Changpeng also believes that the cryptocurrency industry will eventually recover: "The market will heal itself." "
FTT price has continued to fall in the past few days and is currently falling to around RMB 17.71.
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