A report of a current event, knowledge, information
The FTX fiasco continued to turn cryptocurrencies upside down as investor sentiment waned. The global crypto market value, which was about $1 trillion a few weeks ago, has dropped to less than $800 billion, and many cryptocurrencies are recovering well. Billions of dollars worth of wealth has been destroyed! Can crypto investors handle more complexity? Bankruptcies seem to be common in the past few months among crypto exchanges as illiquidity continues to be one of the main issues among them, but it destroys trust the hearts of investors, causing the market to fall. It seems that the bankruptcy crisis is not ending soon, and it is said that crypto brokerage Genesis Trading may be on the verge of bankruptcy.
Although FTX announced its failure on November 11, investors already panicked and sold the exchange FTT token days before the actual announcement. FTX problems came to light when its sister company Alameda balance sheet raised questions about the foundation heavily stocked FTT tokens instead of independent assets like fiat money or other cryptocurrencies. Despite the assurances of Sam Bankman-Fried that everything is fine with FTX and the group as a whole, however, everything finally fell apart when FTX filed for Chapter 11 to start the process of restructuring and investing in order for the benefit of all stakeholders in the world.
Currently, at the time of writing, on CoinMarketCap, the global crypto market is around $781.26 billion, down 1.77%. Major cryptos Bitcoin and Ethereum are below $15,800 and $1,100 --- down about 2% each in the past 24 hours. Meanwhile, the FTX token is struggling to hold the $1 mark. FTX has fallen more than 29% in the past seven days, while its monthly decline is more than 94%.
But why the FTX problem with Genesis? Why is there speculation about Genesis money?
Genesis has been updating its relationship with FTX for the past few days after Alameda balance sheet got questioned and FTT score dropped.
On November 9, Genesis tweeted, "Genesis has a business relationship with FTX, among other variables. Our exposure to FTX does not affect our ability to serve our customers." On the same day, the trader said, "in anticipation of the extreme volatility of the market ... we closed and sold contracts, causing a loss of about $ 7 million across all parties, including Alameda".
Then Genesis said later, to emphasize, Genesis has no ongoing loan relationship with FTX or Alameda.
On the day FTX filed for bankruptcy, Genesis tweeted that "the production business now has about $175 million in funds locked in our FTX account, adding that" this does not affect the business we hold. Step"