Faced with the possible takeover of the FTX platform by its rival Binance, which once again underscores the unpredictability of the sector, investors fled the cryptocurrency at high speed, and Binance finally announced on Wednesday evening that it would abandon the operation.
sale movement particle in the cryptocurrency market on Wednesday. Within 24 hours, the total capitalization of various digital currencies disappeared From about $1.030 billion to just $850 billion. So it’s $180 billion in value that’s been whisked away to cryptocurrency investors.
The two major cryptocurrencies, namely bitcoin And the ether, It fell sharply when they respectively accounted for nearly 40 and 20% of the entire market. Thus, the Ethereum blockchain collapsed 25% Since Tuesday, it’s down from a level $1,200while the bitcoin fell over 15th%exchange About $17,000 Shortly after European stock markets closed on Wednesday.
The result of the Binance-FTX case
After it fell over 63% This year, the world’s leading cryptocurrency has now settled for the first time in two years lower than its peak in 2017, The year in which he was born The first great wave of enthusiasm for this new class of assets.
“Don’t look at it as a win-win for us. User trust has been badly shaken. Regulators are going to scrutinize the exchanges more.”
In addition to the decline of the major currencies, the crypto house FTX, the seventh largest platform in the world, FTT lost 78% of its value Within a day, while the world’s No. 1 cryptocurrency, binanceannounced that it would sell its FTT holdings over the weekend, after the press caught a glimpse of it Platform reviewFearing a new degree Celsius.
The struggle between the two platforms is finally over It ended with the announcement of the acquisition From smallest to largest”. You don’t see it Not like our victorysaid Changpeng Zhao, CEO of Binance. User confidence is serious shook. Regulators will scrutinize the exchanges more.”
A severe blow to Coinbase
Crypto Triggers listed on the stock exchange I also felt blown away by this potential new focus for platforms. Coinbase
ranked second in the world and first in the stock market, fell by 9.5% on the Nasdaq stock exchange on Wednesday, the same decline as it recorded the day before.And the bringing its decline to nearly 82% since January.
According to Bernstein analysts, “the binance-FTX combination means a Great unification“From the market and we see it developing an international stature,” he said A growing market for Coinbase’, as it would now be undermined by the strengthening of the world leader.
If some, like Teong Hng, CEO of a crypto investment firm Satori Researchconsider thatThe situation is still very fluidAnd you think these two crypto giants (Binance and FTX, editor’s note) You will do what it takes To protect investors and the sector,” other observers see the events of the past few days as further evidence The fragility of the encryption system As a whole, as well volatility.
Redemption finally gave up
The deal was But many observers questioned it, confirming FTX’s dubious track record. justified distrust, after Binance announced, on Wednesday evening, She eventually gave up on the deal.
After conducting a review of FTX’s operations, “we have decided not to proceed with the transaction to acquire FTX.com,” Binance explained in a tweet, also referring to press reports about mismanagement of client funds and investigations by US authorities.