- BlockFi announced a temporary halt on fund withdrawal.
- The announcement comes following the potential liquidation of FTX.
- FTT was trading at the market price of $2.9.
The Effects Had Begun
The news of FTX acquisition has added another catastrophic speculation among the investors and firms amid this crypto winter. BlockFi, a crypto lending firm, announced that they will halt certain activities including account withdrawals. They asked the users to not make deposits during this time.
They said that they are unable to operate the business as usual due to uncertainty associated with the FTX exchange. BlockFi is prioritizing the safety of their customers from any potential financial damages if the SBF-backed company liquidates. Cryptosphere has already witnessed some of the worst scenarios in the sector, and this will not come as a surprise to the investors.
The big boys of the crypto industry agreed to sign a deal to save FTX from being reduced to ashes. Sam Bankman-Fried previously stated that the company is falling short of $8 Billion to the user withdrawal request. The youngest crypto billionaire was looking to raise funds to prevent the company from liquidity.
This is where the owner of the biggest crypto exchange stepped in. He said that they intend to help the organization, but quickly stepped out citing issues regarding fund management. He said that the firm’s current condition is beyond their aid. The Cayman Island-based exchange said that it will dump all of its FTT token holdings in the market.
FTT Crypto Price Action
As soon as the news broke into the market, FTT token price traveled the highway to hell in the cryptosphere. The asset was trading above $24 levels earlier this week, but the chart shows an almost 90% downfall in token price. At the publication time, FTX exchange’s native crypto was trading at a market price of $2.9.
FTT saw its all time high during September 2021 where it traded at $84 in a flourishing year. Bitcoin traded to the all time high to near $70,000 just to face its worst downturn this year. Now FTX is in turmoil, members of the crypto community are awaiting the answer whether the company will become a part of the liquidity events.
Cryptocurrency sector has already seen firms like Three Arrows Capital, Voyager and Celsius forced to file for bankruptcy. If FTX is liquidated, then it would become the biggest name in this queue.
Sam Bankman-Fried is considered as the youngest crypto billionaire in the world and is often involved in political campaigns. Says that he “cares for the policy more than politics”. Reuters reported that SBF and a couple of his deputies donated around $69 million in campaigns recently.
Source: https://www.thecoinrepublic.com/2022/11/11/blockfi-protecting-users-from-uncertain-alameda-and-ftx-scenario/