HomeCryptocurrencyA chaotic crypto week

A chaotic crypto week

Bitcoin and Ethereum now
Bitcoin, the largest digital currency by market capitalization, fell 4% to $19,750 and was having its worst day in about two months. Ethereum, the second largest currency, fell by 5 per cent.

false rumors
FTX came under pressure after the head of rival exchange Binance said on Sunday that his company would liquidate its holdings of the FTX token due to an unspecified “recent disclosure.”

Sam Bankman-Fried, founder of FTX, said the exchange was “good” and that the concerns were “false rumours”. The company had no immediate comment when contacted by Reuters on Tuesday.

However, the FTX token is down nearly 15% at $18.76, and numbers from analytics firm Nansen show a one-day net inflow from FTX of about $630 million that account holders suggest they are also getting their money back.

Messy week
“With FTT heading south, without a major support level… (there are) massive withdrawals from FTX, across multiple assets,” said Justin Danthan, director of sales at digital asset firm Amber Group.

Justin added: “It looks like investors are selling or withdrawing assets – it could be a chaotic week.”

Also, crypto enthusiasts raised questions on Twitter last week about the FTX token, following a report from news site CoinDesk about a leaked balance sheet from Alameda Research, a trading company founded by Bankman Fried that has close ties to FTX.

“On-chain analytics shows hundreds of millions have been withdrawn from FTX over the past day,” said Matthew Depp, COO of crypto investment manager Stack Funds in Singapore.

Depp added: “The issue of FTX’s solvency has been raised in light of recent events this year…However, we don’t see any solid data so far that would confirm this type of view.”

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