2022 is being an especially bad year for cryptocurrencies. Bitcoin has lost much of its value since last Maygenerating an earthquake in virtual currencies that has infected other markets such as the NFTs. While some operators and investors try to recover the money of their clients or their portfolios, last week we attended the debacle of FTX and its founder, sam bankman, something that has had a devastating effect on this alternative price. Today, Bitcoin hits its lowest level in three years at $15,680 per coin (via Financial Times).
The collapse of Bitcoin and other cryptocurrencies is causing a financial earthquake in the virtual market
Let’s start with what happened last week and the week before. FTX filed for bankruptcy on November 11, creating a perfect storm. FTX’s rival company, another platform known as Binance, said he wanted to sell his FTT assets to FTX and buy the company, only to say he was sorry. Soon a liquidity crisis was generated because they could not collect the tokens due to the lack of cash from the aforementioned FTX, leading these cryptocurrencies to lose all their value. For example, the aforementioned FTT virtual item is currently trading at one and a half dollars when a year ago it exceeded 50 dollars. But Sam Bankman-Fried’s problemsfounder and manager of the company, had not finished with the almost total destruction of his fortune.
Nicknamed with him JP Morgan of cryptoerr in several of his latest investments, such as the one that led to the purchase of billions of tokens called Serum, a currency that is worth practically nothing right now. His $32 billion company was already worthless, and his investments had proven to be smoke. The financial earthquake generated by Bankman and its FTX has led to the so-called contagion effect, destroying the prices of other companies and virtual currencies such as the aforementioned Bitcoin. Another example. The cryptocurrency company geminianother of the rivals of Binance and FTX, has been trying to raise cash for weeks and warns that it could file for bankruptcy due to its bad investments in the companies and joint venture from Bankman.
The contagion effect has generated chaos in other cryptocurrencies and several platforms warn of collapse
With Bitcoin at an all-time low, registering its lowest price in recent years, we also have the Ethereum crisis., a stable value that has fallen more than 2% in the last hours. For its part, Binance’s BNB cryptocurrency, the third most popular coin, is trading at $254, 1.3% less than 24 hours ago and 55% less than a year ago. It seems that the virtual earthquake will continue in the coming months.