- SBF owned FTX upsets investors and users.
- Struggling with problems of liquidity with continuous decline seen in FTT token.
- The crypto exchange can file bankruptcy.
Introduction
The crypto billionaire Sam Bankman-Fried’s digital empire is sinking in the swamp of crypto winter. On 8 November,2022, his fortune dropped from $15 billion to $1 billion.
Continuing from the information of Bloomberg Billionaire Index, It accounts for 94% of his stupendous wealth and is said to be the biggest fall reported by the Index till date.
The tremors of FTX downfall shaken the ground of the trillion dollar crypto industry. Decline of crypto companies is casual in an uncertain, self governed domain. But this is not like any new budding startup. Crypto veterans are shocked by the near-collapse situation in the past week.
As per the media reports, it is found that SBF’s founded crypto trading firms holds almost one-third of its own FTT tokens. This frightens the investors of sole manipulation of the market.
However, the CEO of the world’s largest crypto exchange accepts the news that claims acquisition of its rival firm. He also stated that FTX has liquidated its $580 millions of holdings to overcome the challenge of “liquidity crunch”.The company will need to file bankruptcy if the problem of cash injection is not solved soon.
But the Bankman denied any kind of takeover of FTX. He claims this as rumors. The markets reacted worst on Wednesday in the ongoing crypto winter. Major cryptos continue to sink, such as Bitocin ($16,867.95) and Ethereum ($1,162.11).
Finding Light in the Dark
According to the reports, FTX founder and CEO SBF asked for help to raise emergency funds to cover an $8 billion shortfall. The sources stated, he also highlighted several ways to help solve FTX ‘financial woes’.
As per the information, it is found that they are willing to liquidate its $3 to $4 billion of liquidity in order to recover the loss. Until Wednesday morning, the FTX was the world’s fourth largest crypto exchange by volume. SBF had been involved in many political campaigns and was also a sole ‘Savior’ to many crypto companies.
So it is shocking for regulators and politicians too to notice the crypto exchange collapse. It is unbelievable to see things fall out of control from their hands. The FTX was one to acquire assets of bankrupt crypto companies like Voyager Digitals and offering loans to crypto lending platform, BlockFi.
SBF justifies his apologies to investors and users in a long Twitter thread -“We’re spending the week doing everything we can to raise liquidity,” he added “I can’t make any promises about that. But I’m going to try. And give anything I have to if that will make it work.”
Source: https://www.thecoinrepublic.com/2022/11/11/news-of-ftx-wavers-towards-filing-bankruptcy/