Sam Bankman – Fried’s career is officially finished when FTX businesses filed for bankruptcy on Friday, 11th of November. In the era of the crypto markets, this could be the quickest collapse of a crypto powerhouse.
Bankman-Fried’s announcement after the collapse of FTX
Sam Bankman-Fried, the CEO of FTX, apologized for the events of the previous week in a Twitter thread. He said that he started voluntary Chapter 11 procedures in the US that day for Alameda, FTX US, and FTX.
So, it’s unclear from this whether 1,000,000 FTX customers will ever receive their funds back. However, the collapse of the titan creates a significant gap in the cryptocurrency market.
After FTX’s crash, cryptocurrency–marketplace is still stable.
The announcement of FTX’s bankruptcy filing hasn’t garnered much attention from the cryptocurrency market. After a difficult week, BTC and all other significant assets are displaying relatively little fluctuation over the past 24 hours.
Perhaps the cryptocurrency market has already responded sufficiently, wiping off 20% of investors’ wealth, or $200 billion, in less than a week. At the time of publication, the price of BTC is 16,888 USD, down 0.4%, with a $324 billion market value. It’s interesting to note that Ether (ETH) increased by 1.69% in the past day as investors try to profit from the bottom following a 25% decline last week.
Wall Street expert and creator of Galaxy Digital Mike Novogratz claimed that was detrimental for the industry when discussing the FTX bankruptcy with CNBC. The foundation of the system is trust.
The FTX tragedy is far worse for the cryptocurrency industry’s infrastructure, which allows users to purchase, sell, lend out, and advertise coins. However, Novogratz thinks that now, when there is blood on the streets, may be a good time to purchase.
According to JPMorgan, the demise of FTX may have acted as a stimulus for the utilitarian value of cryptocurrencies. They went on to say that centralized players, not decentralized protocols, were to blame for all recent crashes.
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