Galaxy Digital Unveils $77 Million Investment in FTX, $48M Potentially Locked in Withdrawals

FTT, the Native token of FTX, collapsed on 8 November 2022.

Galaxy Digital released its quarterly earnings on 9 November 2022 and noted that $76.8 million exposure to troubled crypto exchange FTX consisting of cash and digital assets. Considering this amount, Galaxy Digital noted that $47.5 million is currently in withdrawal.

FTT, the native token of FTX, crashed on 8 November 2022, and after a severe price drop, the exchange halted all its withdrawals.

According to Data from CoinMarketCap, While writing this article FTT Native token of FTX is trading at $2.81 with a 24-hour trading volume of $1,095,203,515.

It is clearly understood that a sudden drop in trading price of FTT tokens, and it was noted that any huge holder of the FTT token suddenly gave up all their stake in the market.

Despite the current situation, Galaxy Digital said it has $1.5 billion in liquidity, including $1.0 billion in cash and another $235.8 million in stablecoins, to cover losses.

During the quarter that ended on 30 September, the company’s partner capital declined 12% year over year to $1.8 billion, citing the backdrop of declining cryptocurrency market capitalization.

TheCoinRepublic reported on 2 November 2022 that galaxy digital has fired one-fifth of its staff because of a decrease in the company’s income.

An official of Galaxy stated that “While our industry faces macroeconomic headwinds, Galaxy remains focused on building for the future state of institutional adoption and enhancing long-term shareholder value. We always consider optimal team structure and strategy and will share plans when finalized.”

According to the reports, India’s leading crypto exchange companies include CoinDCX, CoinSwitch, WazirX, Unocoin, Mudrex and Giottus; there is no way that these leading companies are thinking of cutting down their staff despite the severe turmoil in the cryptos and economy.

Galaxy Digital is one of the most active participants in the crypto sector, working for the betterment.

Earlier on 28 September, Galaxy Digital collaborated with Chainlink to provide more accurate data on the industry.

Galaxy said the firm would provide its crypto pricing data to the blockchain via Chainlink.

The organization believed that this ultimately helps developers of Smart Contracts to design or program more advanced decentralized applications compared to current decentralized applications (dApps).

Galaxy Digital in, August 2022 got in trouble when it refused the proposed deal with BitGo because of Bitgo’s “inability to convey” examined budget reports for 2021.

The news follows Galaxy’s openness to the Terra blockchain collapse and the organization’s pioneer Mike Novogratz tending to the LUNA subject in mid-May.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing