Cryptocurrency

FTT, SOL, APT tank over FTX insolvency woes

The “cryptocurrency feud” between Changpeng ‘ Zhao (CZ) and Sam Bankman-Fried (SBF) soured on Nov. 8, culminating in the biggest bull trap in recent memory.

Since November 6, when CZ tweeted its intention to sell FTT tokens owned by Binance, $152.6 billion Token prices dropped significantly as a result of leaving the crypto market.

The tweet raised questions about FTX solvency. Given Terra LUNA’s position and willingness to rescue his failing CeFi platform, it presented a somewhat implausible scenario.

UpOnly TV host Coby He commented that the speed at which the situation unfolded revealed many “long-term smart crypto ppls” who were unwise about what was going on behind the scenes at FTX.

“In my 10 years of cryptocurrency, I think this exchange rug is the worst by far.

The size of the FTX black hole is unknown at this time

On November 8th, CZ tweeted that FTX has reached out to Binance for help and, subject to due diligence, a non-binding agreement to acquire the company has been signed.

Up until that point, SBF had professed that everything was fine. While on-chain data showed a “bank run” of holdings, many thought FTX was sufficiently liquid.

According to a Wall Street Journal reporter Liz HoffmanBefore the deal with Binance was struck, SBF had sought help from billionaires in Silicon Valley and Wall Street.

Other than general comments about bankruptcy and irresponsible investment strategies, the details of FTX’s predicament are currently unknown.

Coinbase CEO Brian Armstrongsaid when asked if his exchange would buy FTX.

“There [are] Why it doesn’t make sense. “

Armstrong added:

“[I am] There is currently no freedom to share details. “

biggest loser

In the last 24 hours, FTX’s native FTT token is the worst among the top 100, down 74% to $2.76. In contrast, the FTT started the day at $22.23.

Second, Solana lost 35% of its value over the same period. Support she found on the morning of November 9 (GMT) at $17.56.

Twitter user @immortal cipher Alameda, the investment arm of FTX, said it was under selling pressure after it sold its holding of Solana to protect FTT’s price.

Aptos has fallen 30% over the past 24 hours and bottomed out at $4.34 this morning. APT he launched on October 19th and was immediately criticized for poor scalability at launch, VC-friendly token distribution, and ties to the meta.

In July, the project $150 million Series A funding round led by FTX Ventures, with participation from Andreessen Horowitz, Multicoin Capital and Circle Ventures.

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