A big crisis has come on the coin board. The FTX exchange, which had ranked third on the cryptocurrency exchange not long ago, is filing for bankruptcy due to liquidity crises and problems, making the Coinvaliman incident come to mind. 바이낸스 거래소 사이트 It is currently down to 94th place in the exchange rankings, but the high ranking of the exchange makes it impossible to think that it is necessarily stable. Let’s see what happens.
Issue begins on November 2nd
First, CoinDesk of the United States obtained the financial statements of Alameda, an affiliate of the FTX exchange, and raised the issue. In summary, it is said that the body was grown with a self-issued coin, but in summary, it is as follows.
I’m sorry I drew it with my feet. In summary, the FTX exchange lends FTT, a coin issued by its affiliate Alameda, and Alameda borrows dollars as collateral. And then you deposit the borrowed dollars into FTX and the exchange buys FTT with this and raises the price. Alameda made profits by selling its FTT at an increased price and secured investment with it. In conclusion, it means that financial soundness is the worst.
The financial health of the world’s third-largest exchange is like this. Of course, what will happen?
On November 7, the world’s No. 1 Binance Exchange CEO, Zhao Chang-pyeong, will sell FTT.
If the company loses credibility, investors will naturally withdraw their funds. It said it would sell all of the FTTs held by Binance, the world’s No. 1 coin exchange, and sold FTTs worth a total of $580 million. Investors who heard the news belatedly also tried to find funds deposited in FTX. In conclusion, a bank run crisis occurs, which causes a serious liquidity crisis on the FTX exchange.
<Source: CoinMarketCap, Bitcoin Price>
Eventually, fear is created in the cryptocurrency market itself, and bitcoin prices, the No. 1 coin in market capitalization, begin to decline significantly. As a crisis came to the coin market, Binance said it would acquire the FTX exchange by writing a non-binding letter of intent, LOI, to stabilize it. So, for a moment, coin prices had risen again.
Binance finally withdraws its acquisition of FTX on November 8.
<Source: Binance Tweet>
Binance decided that he would not be able to embrace FTX in the end. The reasons for the withdrawal are known as follows.
FTX’s problems are out of control and beyond support in Binance.
Reports that due diligence on FTX and customer funds were mishandled, and regulatory agencies’ FTX investigation also contributed to the withdrawal of the acquisition.
Binance itself seems to have thought that if it takes over to stabilize the coin market, it will be troublesome. As the news of the withdrawal became known, darkness came back to the coin market, and it began to affect fintech companies.
It bought a 7.6 percent stake in Robinhood from FTX, which also caused a fall in Robinhood shares. Of course, from a financial point of view, the stock price rose again because there was no link, but the November 11th stock price rise was a time when the entire Nasdaq soared, so it feels like it is on the market rise rather than relieving anxiety caused by FTX. Venture capital such as Softbank and Sequoia Capital, which invested in FTX, also suffered damage. In the case of Softbank, there are many opinions that it will lose more than 100 million dollars, although it has not been announced accurately.
Eventually, on November 11, the FTX exchange filed for bankruptcy proceedings
He has filed for bankruptcy in the state court of Delaware in the U.S., and CEO Bankman Fred will also resign. On top of that, 130 affiliates of the FTX Group are also undergoing bankruptcy procedures, so please refer to the list of affiliates below.
Among the 130 FTX affiliates, Hannam Group, a domestic corporation, is also included, which is expected to be established as a base for domestic investment activities.
Anyway, FTX’s debt is known to total between $10 and $50 billion, with more than 100,000 creditors. Some people may think that the FTX crisis will just end up with coin investors or losses. If such a huge company collapses, companies that have invested or lent funds may also be at risk and collapse like dominoes. Literally, the Coinpan Riemann crisis could be recreated.