2022 is a particularly bad year for cryptocurrencies. Bitcoin has lost a lot of its value since last Maycausing an earthquake virtual currencies that have spread to other markets as one of NFT. Some operators and investors are trying to recover their customers’ money or wallets last week let’s participate in failure FTX and its founder, Sam Bankman, this had a devastating effect on this opportunity cost. Today, Bitcoin hits a three-year low of $15,680 per coin (via Financial times).
The collapse of Bitcoin and other cryptocurrencies causes a financial earthquake in the virtual market
Let’s start with what happened last year and the year before. November 11 FTX filed for bankruptcy and created a perfect storm. FTX’s competitor, another platform known as Binance, said he wanted to sell his FTT assets to FTX and buy the company, but apologized. A liquidity crisis soon ensued as they were unable to withdraw their tokens due to a lack of cash from the aforementioned FTX, causing these cryptocurrencies to lose all of their value. For example, the already mentioned virtual commodity FTT currently costs a dollar and a half, after exceeding 50 dollars a year ago. But Sam Bankman-Fried Problemsthe founder and head of the company, had not completed the almost complete destruction of his assets.
Nicknamed with him The JP Morgan of Cryptocurrenciesmade mistakes in some of his recent investments, for example, led to the purchase of billions of tokens called Serum, a currency that is currently worth virtually nothing. His $32 billion company was worth nothing and his investments were just smoke. The financial earthquake caused by Bankman and his FTX caused a so-called contagion effect, destroying the prices of other companies. and virtual currencies such as those mentioned above Bitcoin. Another example. Cryptocurrency company Twinsanother of Binance and FTX’s competitors, has been trying to raise money for weeks and warns that bad investments in companies and joint venture banker.
The contagion effect has caused chaos in other cryptocurrencies, with several platforms warning of a collapse
With Bitcoin at an all-time low and registering its lowest price in years, we also have an Ethereum crisis., a stable value that has fallen by more than 2% in recent hours. Meanwhile, Binance’s BNB cryptocurrency, the third most popular coin, is trading at $254, down 1.3% from 24 hours ago and down 55% from a year ago. It looks like the virtual earthquake will continue in the coming months.