The global cryptocurrency Exchange platform FTX has been facing a snowball effect in withdrawals in the last 72 hours in which the platform witnessed approximately $6 billion in withdrawal requests till tuesday morning.
The CEO of FTX told his employees in his slack message that he is exploring all the options for his firm after the recent Binance deal collapsed on Wednesday. The deal between Binance and FTX collapsed after the due diligence bailout option was communicated with the FTX platform.
All the Retail investors have pulled out their riskier funds from FTX, considering the rising interest rates in the economy. This has resulted in the Fall of two third of the cryptocurrency market from its ultimate peak of $1.07 trillion.
Binance had announced that they work on the deal and will cover all the liquidity crunch with the help of non-biting agreements along with the due diligence procedures with the FTX platform. As the process of corporate due diligence and the present news of US agency investigations, Binance has decided not to work on the process of acquisition of the FTX platform.
As per some reports, this is seen as a conspiracy move against the FTX platform in which Binance first disclosed the doubted issues as controversial issues in the media rather than the FTX form.
FTX CEO in his slack messages revealed that he said he will be fighting as best as he can and in the process which will seem to be correct to him, and by working on all the possible exploring options for the acquisition the future functioning of the platform.
As per the Wall Street Journal platforms needs funds of approximately $8 billion to complete the withdrawal request and to work on the present situation from the platform. The FTX platform CEO also approached some other companies like OKX asking for a deal with FTX but this discussion couldn’t continue and FTX had to approach Binance for the possible liquidity crunch issue.
The present status of the FTX platform has shattered investor’s interest in the fast-moving cryptocurrency industry after the prices of cryptocurrencies have been impacted in the last year. This performance issue with a platform has also shown the investor’s scale impact on the cryptocurrency market.
The crypto market witnessed prices rise between 2020 to 2021 in which the Bitcoin price surged by 60% in the year 2021 and now they are down to 30% at $16,277. The price of FTT tokens issued by FTX platforms also went further down by 67% after the collapse of 72% on Tuesday.