CZ Likens FTX To Lehman Brothers; Crypto Crash To Worsen

FTX crypto crash to worsen?: Binance CEO Changpeng Zhao ‘CZ’ said the crypto market is yet to see its worst phase after the FTX collapse. Comparing the current crypto crash to the 2008 global financial collapse, he said more companies could crash in near future. CZ was speaking at conference earlier on Friday, when he said there would be cascading effects on the crypto industry. Meanwhile, FTX Token (FTT) recovered slightly after news of Justin Sun rescuing Sam Bankman-Fried appeared.

Read More: FTX Restructuring; New CEO John Ray III Announces Advising Firms 

Crypto Crash Similar To 2008 Lehman Brothers Collapse

Considering the events that transpired around FTX this week, CZ said, the global financial crisis is an “accurate analogy” for the FTX collapse. According to a Financial Times report, CZ warned during the conference that more crypto companies, and especially those close to FTX, would suffer more in the coming weeks. On a positive note, however, the Tron founder said the crypto market would ultimately heal itself out of the crisis.

“With FTX going down, we will see cascading effects. Especially for those close to the FTX ecosystem, they will be negatively affected.”

As of writing, the FTX token price stands at $3.19, up 11.37% in the last 24 hours, according to price tracking platform CoinMarketCap. FTT is currently ranked 76 based on market cap, with its value dropping nearly 90% over the last one week.

More Crypto Companies In For Trouble

Sun said it could take another two weeks for other crypto weeks to announce liquidity issues. In a latest development, the FTX group announced its decision to go for voluntary chapter 11 bankruptcy. Also, Sam Bankman-Fried has resigned from his role as FTX CEO. Earlier, he apologized to crypto community for the chaos that erupted in the crypto market in the form of a price bloodbath. The group said John J. Ray III has been appointed chief executive officer of the FTX Group.

Also Read: FTX Announces Chapter 11 Bankruptcy, Crypto Crash Imminent?

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.