Residents say they face vacant apartments and a loss of job opportunities. They claim that these losses were caused by the bankruptcy of the FTX exchange. After the collapse of FTX, an entire country finds itself affected.
Troubled economy
After the collapse of the cryptocurrency exchange FTX, which was headquartered in the island nation of the Bahamas, Bahamians are said to still be trying to find a way to make sense of it all, while remaining optimistic about the future. According to a report by The Wall Street Journal (WSJ), the island nation has been rocked by the FTX implosion. The country has encouraged cryptocurrency companies to feel at home with its tailor-made regulatory touch.
The Bahamas was hit hard by Hurricane Dorian in 2019 and the Covid pandemic in 2020. The country was already struggling to find ways to boost an economy overly reliant on tourism and offshore banking. These two activities make up a large portion of the GDP. It seems that the current government of the Bahamas wanted to play a vital role in the economic recovery of the island.
FTX implosion effects
Today, society suggests it implosion FTX’s sudden boom left a streak of unemployment on the small island. When operating at full capacity, FTX provided employment to local residents. FTX spends over $100,000 a week on catering. In addition, a special transportation service was established to transport workers to the island. According to the WSJ, FTX has also hired a number of Bahamians in areas such as logistics, event planning and regulatory compliance.
On the 18th of October Cointelegraph It reported that the Bahamas securities regulator had ordered the transfer of FTX’s digital assets to a wallet owned by the commission “for security purposes.” According to a statement from the Royal Bahamas Police sent to Reuters on November 13, possible criminal misconduct in connection with FTX’s bankruptcy is being investigated by financial investigators and securities regulators in The Bahamas.
Indifference to the fate of the country
In the aftermath of FTX’s fall, some in the crypto community were in the clear. Some said they felt no sympathy for the effects of the collapse on the small island nation. For example, Hacker News user Matkoniecz commented along these lines. He explains that since the Bahamas helps the wealthy and corporations evade taxes, his sympathy for the negative consequences of this is limited. »
With the collapse of FTX, many of the spendthrift foreigners who worked for the company and boosted the local economy are said to have fled the island. Therefore, the situation turns out to be absurd. Bahamian security guards find themselves guarding nearly empty buildings.
source : Cointelegraph
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