The FTX bankruptcy affected the crypto market and entities that indirectly depend on digital assets. FTX’s downfall effect is crossing the boundaries. Miami nightclubs are one of the best examples of this. Recently Miami nightclubs were hugely affected by the FTX downfall.
In the early stage of COVID-19, Miami nightclubs became a gateway for crypto users to surplus the cryptocurrency. In Miami clubs, one table costs $50,000 (USD), or they can rent a whole venue for half a million dollars. Due to many cryptocurrency entrepreneurs, Miami nightclubs became the hottest clubs in the world.
In April 2021, the E11even club became the first ever Miami club that accepted cryptocurrency for payments. At the end of 2021, the E11even club profited more than $6 million (USD) in transactions. But from the past few months, E11even experienced a huge loss of $10,000 (USD) due to the cryptocurrency downfall in the market.
In a press conference Michael Simkins, CEO of E11even, stated, “We were the first major club to accept crypto as payment, and now we have processed over $5 million (USD) of it at the nightclub. We have always been a preferred entertainment establishment for people in the crypto community, both VCs, founders, and investors. So we have been in the ecosystem by doing all these things, even before being a direct participant.”
The recent FTX bankruptcy and sudden downfall of crypto asset prices had hardly affected Miami club owners. According to the data, the market capitalization of global cryptocurrency was valued at $814.55 billion (USD), showing a downfall of 3.5%. Bitcoin fell to 3%, and Ethereum was trading down more than 4.8%.
On November 11, the biggest collapse happened in the crypto market. FTX, the world’s second-largest crypto exchange platform, valued at $32 billion (USD), faced a sudden downfall in the crypto market. FTX filed for Chapter 11 bankruptcy, and the CEO, Sam Bankman-Fried, resigned.
FTX waited a long time to increase the price of FTT tokens. After some days, Alameda started borrowing “real money” using these highly inflated FTT tokens as collateral. FTT lost up to 90% of its value this week. It led Binance to pull out of the bailout deal with FTX.
Andrea Vimercati, director of food and beverage at the Moxy Hotel Group, stated “the cryptocurrency entrepreneurs were ordering 12 or 24 bottles of the most expensive champagne and just showering themselves without even drinking.”
Clubs That Accepted Crypto in Miami
- LIV Miami
- Mango’s Tropical Cafe
- Story
- Basement
- E11even
- Club Space
Source: https://www.thecoinrepublic.com/2022/11/29/miami-clubs-were-affected-by-the-ftx-bankruptcy-beyond-the-crypto-sector/