After the 3AC and Celsius cases, the CEO of digital asset exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. FTX warns that more insolvencies are on the horizon for cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. companies.
- FTX director warned of contagion effects of insolvency.
- Celsius and 3AC are already facing liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. problems.
- Sam Bankman-Fried rescued two cash-strapped companies.
As the bear someone who believes that prices in a given market will decline over an extended period. Such a person might be referred to as “bearish.” cycle continues to wreak havoc on the cryptocurrency market, it wouldn’t be surprising to see an insolvency scenario among companies in the sector, according to young entrepreneur Sam Bankman-Fried.
In recent weeks, insolvency difficulties on the part of firms such asThree Arrows Capital capital is most commonly defined as the large sum of money you would use to invest. y Celsius have made headlines in crypto space, raising fears of a possible wider contagion in the industry.
A inicios de este mes, el fondo de cobertura de criptomonedas con sede en Singapur, Three Arrows Capital (3AC), revealed that it was facing insolvency problems due to mass liquidations and had been hit hard by the collapse of the ecosystem. Earth. 3AC had invested more than USD$200 million in LUNA, the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. native of Earth which lost its value in May.
The crypto-loan service Celsius suspended withdrawals a few weeks ago because of “ extreme market an area or arena, online or offline, in which commercial dealings are conducted. conditions “. The firm, which is now weighing bankruptcy, has been seeking advice from various legal experts to analyze solutions. They are not the only ones. The lender Babel Finance also stopped operations, and other companies have echoed the negative effects of the fall.
“ There are secretly insolvent exchanges “
In a recent interview for Forbes the founder and CEO of FTX addressed this scenario and warned that more insolvency could be on the horizon, as other companies could also be “in the process of becoming insolvent”. secretly “facing similar situations.
Bankman-Fried, talked about how his firm, Alameda Research has helped Voyager Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. to cope with 3AC exposure to the provide it with a $500 million line of credit. Your cryptocurrency exchange FTX you will also granted another loan to the crypto lender BlockFi which, similarly, had been affected by 3AC’s problems.
As a review Forbes the 3AC fund had entered into debt with Voyager Digital y BlockFi after borrowing large sums of money. The director stressed that there is a possibility that he may not get a return on his investment in both companies; however, he defended the move by saying that it was the “ required ” to “ stabilize things and protect clients ”.
Despite his generous capital injection, the businessman does not see bailouts for all of them. Although he did not mention any names, Bankman-Fried explained that, during the bull a person that is optimistic and confident that market prices will increase, this person is also known to be "bullish" about the market or price. cycle, exchanges raised their bets sharply to attract customers with generous yields for deposits, a situation that with the recent price decline becomes unsustainable.
There are some third-tier exchanges that are already secretly insolvent. There are companies that are basically too far gone and it is not practical to back them for reasons such as a substantial hole in the balance sheet, regulatory problems or that there is not much business left to save.
FTX is solid and looking to expand
Beyond an altruistic attitude, the CEO of FTX seems to be taking advantage of falling prices to carve out its place in the industry. This year, the company said it is working to invest investing is when you put money in a financial scheme with the intent of making a gain. billions in mergers and acquisitions. FTX began its expansion into Europe shortly before debuting a new exchange in Japan.
The company also recently closed an acquisition deal with the Japanese stock exchange. Liquid and bought the firm Embedded Financial Technologies amid plans to open up stock trading. In addition, its CEO acquired a stake in Robinhood which encouraged this week rumors of a possible purchase .
Despite unfavourable market conditions, FTX is financially sound and has been profitable for 10 quarters, Bankman-Fried told Forbes . By way of comparison, its rival Coinbase is an American company that operates a cryptocurrency exchange platform. lost USD $432 million in the first quarter of 2022 and its shares are down nearly 90% from their all-time high.
- CoinFLEX stopped withdrawals and now wants to issue USD $47 million worth of tokens to solve its problem
- British Virgin Islands Court Orders Liquidation liquidation refers to the conversion of an asset or cryptocurrency for fiat or its equivalents. of Three Arrows Capital
- FTX CEO Sam Bankman-Fried denies Robinhood acquisition rumors
Article by Hannah Estefania Perez / DiarioBitcoin
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