Cryptocurrencies slide as concerns over FTX exchange rattle markets | Inquirer Business

Cryptocurrencies slide as concerns over FTX exchange rattle markets

/ 04:34 PM November 08, 2022

SINGAPORE – Cryptocurrencies fell heavily on Tuesday and the native token of crypto exchange FTX collapsed by 15 percent as investors appeared to take fright at talk of pressure on FTX’s financials.

Bitcoin, the biggest cryptocurrency by market value, was down 4 percent at $19,750 and was having its worst day in about two months. Ether, the next largest, fell 5 percent.

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FTX has come under pressure after the head of rival exchange Binance said on Sunday his firm would liquidate its holdings of the FTX token due to unspecified “recent revelations”.

FTX founder Sam Bankman-Fried said the exchange was “fine” and that concerns were “false rumors”. The firm had no immediate comment when contacted by Reuters on Tuesday.

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However the FTX token was last down about 15 percent at $18.76 and figures from analytics firm Nansen showing a one-day net outflow from FTX of about $630 million suggested account holders were also getting their money out.

“With FTT headed south, below a major support level … (there are) massive withdrawals out of FTX, across multiple assets,” said Justin d’Anethan institutional, sales director at digital asset firm Amber Group.

“It seems like investors are selling assets or withdrawing them out – probably will be a messy week.”

Crypto enthusiasts had raised questions on Twitter last week about FTX’s token, following a report from news website CoinDesk about a leaked balance sheet from Alameda Research, a trading firm founded by Bankman-Fried that has close ties with FTX.

Reuters was unable to independently verify the accuracy of the report or the origin of the leaked balance sheet, but it seems to have at least rattled fragile market confidence.

“On-chain analytics show hundreds of millions being withdrawn from FTX over the last day,” said Matthew Dibb, chief operating officer of Singapore-based crypto investment manager Stack Funds.

“The question of solvency of FTX has been raised given recent events this year … however we don’t see any hard data as yet that would confirm this type of view.”

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TAGS: cryptocurrencies, FinTech
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