wave has not yet subsided, and the aftermath of the FTX crisis is spreading.
In just a few days, the huge FTX moved from a valuation of US$32 billion to a filing for bankruptcy. The filing shows that FTX and some subsidiaries have a total cash balance of approximately US$1.24 billion. However, its financial loopholes actually reached as much as $8 billion.
As this crisis continues to ferment, the market liquidity in the currency circle has dropped significantly. On Tuesday, the price of Bitcoin fell to $15,741, with as its lowest point since November 2020, and Bitcoin closed down 8% on Monday.
In addition, the price of Solana, a cryptocurrency supported by FTX founder SBF, plummeted by more than two-thirds in two weeks.
Ruisui Bank analysts wrote in a report last Friday that the daily trading volume of the cryptocurrency industry will be 30% to 40% lower than the average this year in the next period.
cryptocurrency industry "all losses"
This crisis has caused a huge blow to many companies such as Coinbase and Genesis.
19 months after listing with a market value of more than US$85 billion, the market value of digital currency trading platform Coinbase has now fallen below US$10 billion. Its stock price has plummeted 25% in the past four trading days, and has fallen by more than 83% this year. The company's CEO Brian Armstrong said in an op-ed on the media website that his company has no "any substantial FTX exposure" but that he "sympathizes with everyone involved."
Armstrong said: "We have the possibility of customer churn at any time, and many people have lost a lot of money because of the dilemma of FTX."
Bank of America analyst Jason Kupferberg downgraded his rating on Coinbase last Friday, saying the cryptocurrency trading platform has a "risk of contagion" even if "it is not another FTX." Jason Kupferberg wrote that does not protect them from the wider influence within the crypto ecosystem.
Meanwhile, digital asset brokerage firm Genesis has struggled to raise at least $1 billion in loan funds in the past period of time, warning investors that if the effort fails, it may need to file for bankruptcy. , but Genesis later denied that claim.
People familiar with the matter said that after FTX filed for bankruptcy, Genesis faced serious liquidity tensions and was negotiating with Binance's potential investment, but so far, financing for has not been implemented. Binance is worried that there will be conflicts of interest in the future and decided to refuse to invest.
In addition, media also reported that Genesis also sought financial assistance from private equity firm Apollo Global Management.
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